Q1: How accurate is the Price Projector?
The Price Projector obtains an initial accurate market price for the supply, for the new contract start date, from your current energy supplier. The Projector then uses Wholesale Market fluctuations to forecast a future contract value.
There are other important elements to consider that will impact upon price fluctuations. These include individual energy supplier pricing decisions or strategies, credit scores and also changes in the cost of third-party charges. These are not accounted for within the Price Projector report.
Q2: What is used to calculate the Price Projector?
We use the Wholesale Price to Project the potential change in your contract value.
The wholesale element of electricity supply costs typically makes up 40% of the overall energy cost and for gas it is typically 65%. The remaining % is made up of third-party costs such as distribution & network costs and government levies (FiT & RO). Our Price Projector tracks the Wholesale element of your total energy cost.
Q3: What is the Wholesale price?
Wholesale energy prices are the price that energy suppliers pay to buy the electricity or gas that they then sell to the end user.
Q4: How often will I receive Price Projectors?
Indigo Swan will issue these monthly.
Q5: Is VAT included in the Price Projection?
To ensure there is no confusion regarding specific VAT requirements, this is excluded from the Price Projection.
Q6: Is CCL included in the Price Projection?
As CCL is a cost added to the invoice, where applicable, Indigo Swan include this within the Price Projection.
Q7: Will Indigo Swan only obtain a price from the Current Energy Supplier, when we decide to contract?
When you feel the time is right to negotiate the new supply contract for your supply Indigo Swan will conduct a full, competitive tender exercise ensuring you obtain the best market price available and an energy supplier that best suits any specific requirements you may have.
Q8: How will I decide when best to secure a new supply contract and for how long?
Our Market Knowhow will give advice on the value of Wholesale Market Prices and thoughts on factors which could have a future impact. Using this information, the position of the Price Projector against your Current Contract and discussions with your Account Manager at Indigo Swan, you will be well supported in making a decision which best suits your organisation.
Q9: Is there a restriction on how many Price Projectors I receive?
Indigo Swan will continue to provide monthly Price Projectors until you sign a new supply contract.
Q10: Who provides Indigo Swan’s Market Knowhow?
The Market Knowhow is a combination of official industry data and our own knowledge of the many factors which impact on the energy markets.