When you need a new gas supply installed it probably means one of 2 things:

  1. 1. you are expanding.

  2. 2. you are moving to a site where the gas requirements aren't suitable/don't currently exist.

In either case, speed will be the focus for the business owner as every day you are not fully operational will cost the business well in excess of what can be saved?

Perhaps, although getting the job done in time for your move/opening whilst reducing the short and long term costs of the new supply is quite essential.

So how do you avoid costs?

Firstly, don't just go to one of the big 6 and get them to do it. It's hugely likely that they are outsourcing the work to a number of different companies- so that's the first thing to check, are you dealing with the contractors directly?

Obviously if you want to completely avoid all of the hassle you need to find a company that are experienced and renowned for delivering new energy supplies on schedule and without fail (if you look hard you will find more companies that have failed to deliver and blamed service levels or other parties). The trick to all this is being streamlined but often their are too many parties involved in the layer cake & you can end up with 7 hoops to jump through..

  • Client who requires install ASAP.

  • Intermediary assisting with install (Supplier/Consultant).

  • Planner/Designer for works (sub-contractor of supplier).

  • Excavation Team/Ground Works Company (sub-contractor of supplier)

  • National Grid (who will approve the works).

  • Energy Supplier (for supply contract).

  • Meter Installer (sub-contractor of supplier).

  • So reducing the cycle and understanding each stage of the process is essential.

Beware, the over-inflation in costs for these jobs can be levied in two ways:

  1. 1. The supplier or your 'one point of contact' for the job, who is liaising with all the other parties and paying their bills to cover number 2 to 5 (on the list above) is inflating the total fee.

  2. 2. The costs of the installation are reduced only to be offered a higher pence per kilowatt hour (kWH) for the next 12 months or 2 years.

No (2) is where we are seeing more over-charging activity entering the market. It's sensible to retrieve more than 1 quote for the works, and often this means getting 2/3 quotes for the same job. If you only compare the costs of the works you could be comparing 'apples with pears' and actually signing a more expensive set-up (overall). So you really need to compare the whole costs from install to 12 months later if you want a true cost consideration.

To give you an example, we recently saw a price for gas of 6.5p/kWH for the 12 month period following the install of a gas meter. The difference between the two quotes they were considering was £300 but they were going to proceed to save the up-front cost. Whilst this makes sense on the face of it their annual quantity (AQ) of gas will be in the region of 300,000 to 400,000 kWH in the 12 months following the install. The alternative supply contract on the £300 more install was just 3.4p/kWH. Meaning this job was actually over £9,000 less 12 months in.

If you are looking to deliver a new supply install on time at the lowest cost we can help you avoid the 'layer cake'. For more information email nick@amberenergy.net