In response to growing volatility in the energy market, a new partnership between the Smart Manufacturing Alliance and energy consultants, Inspired Energy, could save Cambridgeshire and Peterborough manufacturers thousands on their energy bills.
The ‘SMA Energy Collective’ is an energy procurement group seeking to secure lower prices for members of the Smart Manufacturing Alliance. By pooling their energy requirements, the collective’s members can secure lower energy prices on the wholesale market.
Members aren’t stuck with a ‘one size fits all’ approach either. The collective uses a portfolio strategy for energy procurement so manufacturers can choose the deals that suit their risk appetite, consumption, and budget. Members can also fix their energy costs at any point in their 12-month term to take full advantage of low prices*.
By joining the energy collective, manufacturers can spread the risk of buying and secure more flexibility with the terms from their energy contract.
Each manufacturer that joins the collective will be consulted by Inspired Energy to determine which strategies and deals are the right fit for their business.
Wayne Brown at Inspire Energy explained: “Using a portfolio strategy for energy procurement gives businesses much better purchasing power and can deliver greater savings. They also tend to be more generous if you go below or over your energy consumption forecasts, so you’re less likely to face additional charges. We’re extremely pleased to be helping Smart Manufacturing Alliance members to keep their costs down when there is so much uncertainty in the market.”
Bob Hart, Programme Director of the Smart Manufacturing Alliance, added: “Even before the Russian invasion of Ukraine, UK energy prices had hit record levels due to a raft of factors including post-COVID recovery and unfortunate weather conditions.
“We’re very pleased to be working with one of the largest energy consultancies in the UK which has a wealth of experience to benefit our members.
“It’s our job to help the region’s manufacturers remain competitive and is a perfect example of how we can achieve a lot more together as a sector. Operating costs are unavoidable but with the SME Energy Collective we can help our members remain viable, and hopefully free up more funds that can be invested into their business.”
* subject to portfolio strategy