When you are searching for information about power you will always find terms like corporate business or bulk consumption. The answers to the question if you meet the requirements of aforenamed terms seems to be important. Not only power suppliers and connected parties find the difference between corporate or small business connections important, the difference is also important for you regulatory obligations.
What is bulk power consumption?
We are sure that it doesn’t surprise you that there are differences between energy for big and small companies. The one thing that is important for you is the requirements for both market. And with those requirements come obligations and advantages.
The divide between bulk consumers and smaller companies lies in the heaviness of their power connection. U meet the requirements of a bulk consumer when you
- Have a gas connection with a capacity with a minimum of 40 cubic metre per hour, and/or;
- Have an energy connection with a capacity from more than 3×80 Ampère.
What does bulk power consumption mean for your company?
Now that we’ve cleared the different requirements for having a bulk power consumption connection, we should look at the consequences of this indication. We understand that the consequences are the most important subject for companies. The difference between small and big companies, does come with some consequences.
At first the protection, better said the lack of protection for big(ger) companies. The difference in protection is made in legal grounds. The protection of private persons is legally better arranged than for companies. This is because the legislator thinks that private persons need to be protected from big, bad energy companies. One of the most important aspects of this protection is the Dutch ACM, the Authority for private consumers. Energy suppliers at the market for private parties need to have a licence before they can start delivering energy. Before getting the licence the suppliers need to meet certain conditions. These conditions assure the protection for private consumers. For example the protection does need to include delivery assurance and it needs to be reliable.
Secondly the legislator also made some differences itself between energy consumers. The legislator also made better protection for private parties. For example the termination indemnity for private parties is lower. Also the termination period for business consumer can, and in most of the contracts is, be longer. The termination period for bulk power consumers can increase to six months. In addition the terms of termination are different. For little companies changes the contract to an way friendlier contract in terms of termination. For big companies tacit renewal isn’t forbidden. The renewal more than once includes higher rates than before.
Unlike smaller companies big companies get a monthly bill with their actual usage. Bigger companies don’t pay a fixed fee monthly, their bill comes out different every month.
Where do I buy as bulk power consumer?
Bulk power consumers need to purchase energy by themselves. The purchasing occurs at the different suppliers for bulk power consumers.
In most of the times the suppliers are the same as for the private market, like Essent, Nuon and Eneco. Aforenamed suppliers deliver energy for private consumers and for bulk power consumers. As company you will surely recognise the well-known calls with astonishing offers, don’t be misled by these offers. More than once there is hidden something behind the unbelievable conditions of the offer. Besides the hidden surprises we advise to always give the offer another look. When companies call with an offer you need to decide on the spot, we highly recommend to arrange a written version of the offer. The overview of the offer is way better when it’s written.
Because of the lack of protection for business users the market will work a lot more on it’s own way. Aforenamed fact makes it an interesting thing to watch for companies. At the business market suppliers need to do way more to land clients. They offer beneficial welcoming discounts or low fixed delivery rates, just to land you as a client.
Don’t you know which offer to choose? We are happy to help you with making the most profitable choice.
When is it possible for me to purchase bulk consumer energy?
For a lot of entrepreneurs the energy market isn’t their every day job. This is remarkable because almost every company uses energy. Also almost every company could save some money within their energy costs.
On of the ways of decreasing energy costs is the way of purchasing it. When you choose the right, strategic times for purchasing it could save you a lot of money. Finding the right moment depends on the time you spend or let someone spend on watching the market. For example when you find a extraordinary low rate, it is highly advised to purchase this rate for a longer time. But watching the market is a time-consuming task, that’s why we are happy to help you with watching the market. The moment the market is profitable, we will inform you.
Do you need help with choosing the right moment to buy? We are happy to help you on your way with choosing the best strategy.
Which factors do I need to watch when purchasing bulk consumer energy?
When choosing your energy suppliers, don’t only watch the rates. Different aspect inside the energy market can be important for you when choosing a new contract.
One of these aspects is the conditions of closing a new deal. Some contracts have a long duration, these long contracts always are a little bit more profitable. Depending on your strategy and the expected developments you need to choose between a long and a short duration period.
For bulk power consumers another condition is also very important, the bandwidth. The bandwidth comes around the corner when you use more or less than the volume you’ve closed your contract for. With aforenamed volume the suppliers decide your rates, also the suppliers purchases power depending on aforenamed volume. When you exceed the bandwidth, the supplier will charge higher rates. De bandwidth gives you margins for the usage, within these margins the agreed rates are applied. The bandwidth is determined to avoid the need to increase the rates out of nowhere. A right estimation before closing a new energy offer is therefore important to avoid surprises.
Do you want to have your contract checked of compared with interesting offers? We are here to help you.