Higher energy prices are a big concern for social housing tenants in the UK. As the cost of living continues to rise, fuel poverty has become a harsh reality for many individuals and families. Energy prices are a major concern that housing associations should be keeping low. By reducing energy costs, tenants can benefit from more affordable and safer housing.
Lower utility bills for tenants
One of the most direct benefits of reducing energy costs is the decrease in monthly utility bills. One way that organisations can lower their tenant’s energy bills is by having a good energy procurement strategy in place.
The benefits of energy procurement for housing associations are:
- Keep energy cost under control
- Better planning for the future
- Long term protection from volatility
For tenants, this protects them from the higher costs and provides them with safe and affordable housing.
Strategic Energy Procurement
So how can housing associations improve their energy procurement strategies?
Bulk Purchasing & Collective Bargaining
Housing associations can negotiate better energy deals by buying in bulk. This collective approach strengthens purchasing power and can result in significant cost reductions.
Fixed-Rate vs. Variable Contracts
Understanding the different types of energy contracts is crucial:
- Fixed-rate contracts lock in energy prices for a set period, protecting against market fluctuations.
- Variable-rate contracts may offer savings if energy prices fall but pose a risk if prices increase unexpectedly.
By analysing market trends and working with energy consultants, housing associations can choose the right contract that aligns with their long-term financial plans.
Renewable Energy Partnerships
More suppliers now offer green energy contracts at competitive rates. Partnering with renewable energy providers can not only reduce carbon footprints but also lead to stable pricing, as renewable energy sources are less affected by fossil fuel price volatility.
Demand Response Programs
Some utility providers offer incentives for reducing energy use during peak demand times. Housing associations that participate in these programmes can earn credits or lower their overall energy bills by shifting non-essential energy use to off-peak hours.
If you would like to find out more about energy procurement for housing associations today, then get in touch with our team.
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