-min.png)
Changing electricity suppliers can offer numerous benefits for your company. Below are the key criteria to consider to ensure your business secures the best deal.
1. Transparency
Is it clear what you are paying for?
Check whether your current invoice displays prices for subscriptions (abonnement in Danish) and supplements (tillæg in Danish). If these prices do not appear separately on your invoice, they are 'hidden' in the price of the electricity, and it can be difficult to see what you are paying for.
At Reel, we offer a free and non-binding invoice check of your current electricity agreement, where we clarify what you are actually paying in fees and charges.
2. Sustainability
Are you being offered a product with genuine climate impact?
‘Green’ electricity products that rely solely on Guarantees of Origin (i.e., renewable energy certificates) have little to no real world impact. This can harm your brand and sustainability efforts.
Keep an eye out for Power Purchase Agreements and metrics like additionality when searching for genuine climate impact. These ensure that your electricity purchase results in the construction of new solar and wind energy.
3. Management of owned production
Can the electricity supplier manage your owned electricity-production?
If your company has any owned-electricity production (e.g., rooftop solar), it’s important to understand whether your electricity supplier can help manage this production and the accompanying certificates, which can be used directly in your own CO2 accounting.
Opting for a supplier that can manage your owned-electricity production can streamline your sustainability reporting and provide you with a seamless overview of the electricity you consume and produce.
4. Pricing
Does the electricity supplier offer different pricing structures?
Many electricity suppliers offer the choice between a variable or fixed price for electricity.
With a variable agreement, the price fluctuates from hour to hour because the electricity is bought on the spot market. Your company is completely exposed to any changes in electricity prices.
With a fixed price agreement, you pay one price for the electricity, regardless of any changes on the spot market. Ordinary fixed price agreements are usually more expensive than what you expect the spot market to be.
Power Purchase Agreements (PPAs) are an alternative to a regular fixed price agreement. PPAs are priced below the expected spot market price, making them a good solution if your company wants a fixed price element without a high risk premium.
Choosing an electricity supplier that offers different pricing structures can help your company develop an optimal electricity strategy that aligns with its financial goals.
5. Flexibility
Does the electricity supplier offer the option to switch between different price models?
If you are not yet sure whether a fixed-price or variable-price agreement is best for you, choosing a flexible electricity supplier might be best for your company.
For example, with Reel you can switch between an agreement with variable prices, an agreement with a fixed price for part of your consumption, or an agreement with a fixed price for your entire consumption.
6. Expiry
Before switching electricity suppliers, it’s a good idea to check whether there is a binding period on your current agreement. Most agreements can be terminated with a one month notice, but some have a longer commitment period.
If you have any questions about your electricity agreements or would like to have your invoice checked, feel free to reach out to Reel.
