Electricty Supply

We have invested in the best processes and people so that, with smart systems and dedicated professionals, we can cut costs and pass the savings on to you.

We have not cut corners on service, safety or reliability – instead we are focused on supplying a simple business electricity service to small and medium sized businesses only, eliminating all unnecessary costs. E4B is an independent business that does not have to worry about generating ever increasing profits to keep shareholders happy.

Customers come first at E4B.

Increases are mainly linked to faster than expected depletion in UK sources of gas.

This has led to tighter gas supply margins and to more reliance on gas imports. These have both contributed to higher wholesale gas prices.

Much of the electricity in the UK is produced using gas and so increases in gas prices result in similar increases in business electricity prices.

Yes.

The major business energy suppliers are facing significant pressure as a result of lower margins in electricity due to escalating wholesale costs. They will need to keep returning their massive profits to their shareholders.

With this in mind its widely predicted that the major suppliers will continue to  increase business electricity prices over the coming months.

Yes.  E4B only accept business customers who payment by Direct Debit

Direct Debit is efficient, effective and hassle-free, which helps us to keep our business electricity costs down and give your business great savings.

Efficient use of energy at your business is important for you to consider, since this can both save you money and help the environment.

You may be eligible for a grant from the government. You can obtain information on energy efficiency programmes from the Energy Savings Trust (www.est.org.uk) or from your local Energy Efficiency Advice Centre on 0800 512 012.

Electricity markets have been and continue to be developed as a result of the deregulation of electricity markets around the world. This process has often gone on in parallel with the deregulation of natural gas markets. A key event for electricity markets occurred in 1990 when the UK Government under Margaret Thatcher privatised the UK Electricity Supply Industry in England and Wales.

The process followed by the British was then used as a model or at least a catalyst for the deregulation of several other countries and regional markets. However, in many of these other instances the market deregulation occurred without the widespread privatisation that characterised the UK example. In different deregulation processes the institutions and market designs were often very different but many of the underlying concepts were the same.

These are: separate the contestable functions of generation and retail from the natural monopoly functions of transmission and distribution; and establish a wholesale electricity market and a retail electricity market. The role of the wholesale market being to allow trading between generators, retailers and other financial intermediaries both for short-term delivery of electricity and for future delivery periods.

Electricity power transmission is one process in the delivery of electricity to consumers. The term refers to the bulk transfer of electrical power from place to place. Typically, power transmission is between the power plant and a substation near a populated area.

This is distinct from electricity distribution, which is concerned with the delivery from the substation to the consumers. Due to the large amount of power involved, transmission normally takes place at high voltage (110 kV or above). Electricity is usually sent over long distance through overhead power transmission lines. Underground power transmission is used only in densely populated areas (such as large cities) because of the high capacitive and resistive losses incurred.

A power transmission system is sometimes referred to colloquially as a "grid". However, for reasons of economy, the network is rarely a grid (a fully connected network) in the mathematical sense. Redundant paths and lines are provided so that power can be routed from any power plant to any load center, through a variety of routes, based on the economics of the transmission path and the cost of power.

Much analysis is done by transmission companies to determine the maximum reliable capacity of each line, which, due to system stability considerations, may be less than the physical limit of the line,

Electricity distribution is the penultimate process in the delivery of electricity, in other words the part between transmission and user purchase from an electricity retailer.

It is generally considered to include medium-voltage (less than 50 kV) power lines, low-voltage electrical substations and pole-mounted transformers, low-voltage (less than 1000 V) distribution wiring and sometimes electricity meters.

energywatch is the independent watchdog for gas and electricity consumers. They were created in November 2000, as part of the Utilities Act, to protect and promote the interests of gas and electricity consumers in England, Scotland and Wales. They are completely independent of the energy industry, and the energy regulator Ofgem.

They provide free, impartial advice on a range of energy issues. They also take-up complaints on behalf of consumers who are experiencing difficulty in resolving problems directly with their energy suppliers.

energywatch works closely with the regulator, Ofgem, to ensure that company performance issues are monitored and where appropriate, the evidence is provided to trigger investigations and/or enforcement action.

A standing charge is a fixed amount you pay for every day you are connected to an electricity network.

Standing charges are used to cover costs like meter reading, maintenance and the cost of keeping you connected to the network.

Electricity meters usually work for up to 20 years without any problems.

Faults are not common and if you think there might be a problem with your meter, you should check everything else first.

If you still think there may be a problem with your meter, you should ask your supplier to get it checked.

The E4B process for testing you electricity meters is:

1. Contact E4B to say you think your meter may be faulty. 

2. E4B will ask you to take daily meter readings over seven days and then phone in these reading. E4B will review the readings and if you still feel that the meter is faulty we will ask our metering company to visit you and carry out a 'standard load test' on your meter, or they may installing a 'check meter' next to your own meter for a minimum of two weeks.

3. You can request an 'official' test. In this case the meter will be checked by a specialist meter examiner appointed by Ofgem and, if your meter seems to be faulty, it will be taken away for laboratory testing. A replacement will be fitted if the meter is removed.  The removed meter is securely packaged and sent to SGS.

4. The meter is tested by SGS, a company contracted by Ofgem to test meters.  The meter has to be accurate within 2% of the exact amount being used.

5. Meters do not have to be exactly right. They are deemed accurate if they read no more than 2.5% higher or 3.5% lower than the exact amount of electricity used.  The meter examiner will issue the results in a certificate which is sent to you, E4B and the owner of the meter.

6. The meter examiner will issue the results in a binding 'Determination' which is sent to you, E4B and the owner of the meter.  If the meter is accurate after all, you will probably have to pay for the costs involved in getting the meter tested.

7. If your meter is shown to be inaccurate, you won't have to pay for the tests and you will be sent a new bill to cover the electricity you have actually used.

If your meter turns out to have been accurate, E4B may charge you to cover our costs.

Half Hourly Meter/Supply (HH) - A Half Hourly meter is a special type of electricity meter which records a reading each half hour through the year. There are two types of HH meter - The first stores half hour readings which can be downloaded by a meter reader attending the site every six months or so. The second communicates readings directly to a central computer database by telephone / modem; meter readings are transmitted every day.

HH metering costs are about:
  £400-800 install
  £500-1000 annual operation charge

Half Hourly Meter/Supply have an MPAN/Supply number that starts with 00.

E4B do not supply Half Hourly Meter/Supply.

Kilowatt-Hour - (kWh) The basic unit of electric energy for which most customers are charged.

The amount of electricity used by ten 100-watt light bulbs left on for one hour.  It is the measurement unit of consumption on your business electricity bill and charged on a pence per unit basis.

Three-Phase Power - A type of power supply usually used for operating heavy loads. The three conductors of an HV system or (confusingly) the four conductors of an LV system (three live and a neutral).

Kilo-Volt Amperes (KVA) - A measure of electrical power. The capacity of a supply is measured in KVA's.  (KVA) - A measure of electrical power. The capacity of a supply is measured in KVA's.
 
A volt-ampere in electrical terms, means the amount of apparent power in an alternating current circuit equal to a current of one ampere at an emf of one volt. It is dimensionally equivalent to watts. An example might be the purchase of an AC transformer rated in electrical terms by volt amperes.

Hence;

10 kVA = 10,000 watts capability where the SI prefix k equals kilo
10 MVA = 10,000,000 watts capability where M equals mega

Profile - means a pattern of consumption of electricity, by half hour, across a year. In electricity, the profile of a consumer refers to their supply requirements and consequently, their metering type. The profile of a consumer is identified by a series of numbers shown on the top line of the supply number for the site.

Profile Class – Although the wholesale electricity market trades on a half-hourly basis, for customers with less than 100kW peak demand, representative load profiles will be used as a means of estimating your demand. There are six profiles for business electricity customers with less than 100kW peak demand.

These are:
• unrestricted
• restricted
• maximum demand customers - subdivided into four profiles by load factor range.

The profiles are provided for specific days of the week and seasons and allow for the influence of temperature and time of sunset, since electricity demand is sensitive to temperature changes. The first number on the top line of the supply number on a bill indicates which profile has been allocated to your meter. This is primarily for suppliers to identify the type of supply (usually domestic, non-domestic) during the transfer process and also when purchasing electricity from their generator.

Code Profile Class –
01 Domestic Unrestricted
02 Domestic Economy 7
03 Non-Domestic Unrestricted
04 Non-Domestic Economy 7 or Restricted
05 Non-Domestic Maximum Demand Load Factor Band 0-20%
06 Non-Domestic Maximum Demand Load Factor Band 20-30%
07 Non-Domestic Maximum Demand Load Factor Band 30-40%
08 Non-Domestic Maximum Demand Load Factor Band Over 40%

There is currently no statutory compensation for loss of earnings as a result of a power cut - planned or otherwise.

A power company will usually carry out work on the electricity network for emergencies and essential maintenance. It is in their interest to disrupt power supplies as little as possible as they will be losing revenue from dozens of power supplies at this time. They also argue that a short planned outage now is better than a potentially longer unplanned one due to failed equipment.

That said, should the company fail to notify a consumer of a planned outage at least 48 hours before they are carried out, then they should make a Guaranteed Standard payment.

Guaranteed Standards are standards an energy company has to meet when carrying out functions of their business. Should they fail to meet these standards then compensation is usually paid to the consumer. In the case of a failure to notify of a planned outage a business would receive £40.

Brokers arrange a deal between a buyer and seller, but never own the power.

There are principally two types of Energy Consultancy - tariff consultancy and energy efficiency. A tariff consultant will search and negotiate for the best contract and supplier for your type of business. An energy efficiency consultant will look at ways of saving money on your energy bills by other means.

Customers should be aware that a broker or energy consultant will not be liable for the energy you consume. In any brokered deal a contract will exist between you - the energy user and a supplier - the energy provider. Even if a broker has arranged to pay your bills on your behalf you will still be liable to pay your supplier for the energy consumed if these bills go unpaid.

energywatch cannot take up complaints against brokers or energy consultants unless directly employed by a company with a supply licence.

Brokers/Energy Consultants may receive commission payments from the energy provider.

Industrial & Commercial electricity contracts are usually for a fixed amount of time. A contract could be for a set amount of years, normally between 1-5 years for a small to medium business.

If you wish to leave this type of contract then you can only do so within time limits near the renewal date of the contract. If a you wish to leave before then, a termination fee will nearly always be applied.

An energy supplier supplies a property and not an individual. Therefore, when you move into a property you are under contract with the existing supplier to the property. This is known as a deemed contract or out of contract and it will remain so until you either contact the existing supplier to agree a new contract or until you nominate a new supplier.

Remember: Being on a deemed contract is more expensive as the supplier will charge a higher tariff rate. It is in your interest to agree a contract with a supplier as soon as possible - contact E4B for an immediate quote.

The rules surrounding a deemed contract are detailed in a supplier's electricity supply licence.

Climate change levy (CCL) is a government imposed tax which came into effect from 01 April 2001. The amount of money from this tax goes towards the government’s energy efficiency programme to reduce greenhouse gas emissions by 2010. Consumers that pay VAT at 17.5% will pay CCL. Electricity suppliers do not make any money from the CCL charge, all money goes to the government.

Rates of levy are as follows:

Electricity 0.43/kWh
Natural Gas 0.15/kWh
LPG 0.96/kWh
Coal 1.17/kWh

Fuel Oils will be exempt from levy because they are already subject to excise duty. It is the government’s intention to raise approximately £1 billion during 2001/2, and intends to redistribute the taxation collected via a 0.3% reduction in employers N.H.I. contributions, together with an allocation of £150 million for support to energy efficiency and renewables.

Exemptions:

• New forms of renewable energy except large hydro electricity plants or nuclear power stations

• "Good Quality" combined heat and power plants under the CHPQA programme.

• Energy products that act as both fuel and feedstock, within the same process (electrolytic processes)

• Public Transport Services that are 0% VAT registered

• Charities

• Natural Gas in Northern Ireland (for up to 5 years)

• Domestic users and 5% VAT registered users < 1000kWh per month (12,000 Kwh or Units per year)

• The Horticulture Sector will be eligible for a discount of 50% in the rate of levy for up to 5 years

• Certain energy intensive users - in particular Cement, Chemical, Ceramics, Food & Drink, Aluminium, Paper, Foundries, Non-Ferrous metals and Steel. These Industries will be entitled to 80% discount from CCL providing they sign up to energy saving targets agreed between the government and relevant trade associations.

If you wish to claim relief or exemption, you need to provide appropriate evidence to your supplier. If you are a business customer with domestic use or non-business charity use, you may achieve this by existing qualifying arrangements for reduced rate of VAT.

In respect of other reliefs (except renewable electricity) you will need to provide your supplier with a completed certificate. The certificate should be provided on request by the supplier.

• VAT is paid on all parts of an electricity supply bill - including the standing charge and Climate Change Levy.
• Domestic VAT is charged at 5% and business is 17.5%
• Electricity suppliers are required to collect VAT by legislation on behalf HM Customs & Excise.
• Registered charities could be eligible for a 5% VAT rate.