The Rising Cost of Energy

BNS Property Management offers its comments on the rising cost of energy

One commodity that has increased in cost dramatically over recent years is energy costs, to both domestic and commercial supplies.

Every year BNS works hard on the procurement of energy for the developments under our management.

BNS is pleased to report that we work hard on the re-tender process for those developments who benefit from our economies of scale as part of our block policy, and have been liaising with many suitable suppliers to obtain the best market rate available to our clients.

Through liaising for many years with a whole host of brokers and providers, BNS is often informed that securing a cost-effective rate is typically more effective when obtaining it during the summer months. Therefore a decision will be made in the summer for the terms to be secured for the renewal on 1st October 2022.

Commentators on energy prices such as Cornwall Insight are warning that the market is unlikely to move to a significantly lower point any time soon, and that any changes will only be marginal.

What they do expect (and this view is shared by others) is that the current market conditions will continue into 2023, and possibly beyond to 2024. This means that the trend for high prices is likely to stay, which is evident in the recently announce price cap rise coming into effect in October 2022. This could also mean further increases in January and beyond.

That being said, if the market does fluctuate positively, BNS is well placed to place the renewals to react to market changes quickly.

This is because all the hard work of data collection and analysis has already been done, including credit checking to allow us to lock in favourable prices.

Nobody can predict the future, but the evidence suggests that doing something sooner rather than later might be the right position to take. This is something BNS shall ensure is acted upon to pass on the benefits to our valued clients.

Further to the procurement of energy, there are other means of taking more control over rising energy costs.

BNS is a strong advocate of advising our clients to consider more energy efficient means of maintaining their buildings. This includes utilising LED lighting upgrades, adequate insulation, and upgrades to doors and windows, which in turn make our buildings eco-friendlier and more sustainable.

Be assured that BNS endeavours to cost control in all scenarios, in particular where market conditions are as volatile as they are in this regard.

To find out if BNS can assist you in this or any other property management matter, please get in touch.