Large Consumer 
733,000 kWh pa, Multiple Sites 
Large Gas Supplies 
The gas market define a large gas user as a consumption in excess of 733,000 kWhs per year, at this level the suppliers will ‘buy-ahead’ your gas on the open market for the length of your contract. Because they have taken on the risk by buying the gas before you pay for it these contracts will include a ‘take-or-pay’ clause that commits you to paying for gas you do not use. It is important to be aware of these criteria in the tendering process. 
Very large consumers may also be involved in the auctions for interruptible supply status. This involves complex financial calculations to determine if there is a cost benefit to entering the auction process. Only sites in areas of ‘weak’ infrastructure will be involved in this process as a means to ensure deliverable volumes to the majority of your local network. ie: they will limit your usage so domestic sites can be assured of a secure supply. 
 
The Market: 
For fixed price contracts business gas is priced from the open market each day, prices may vary wildly at key times and even within the day. You will need to agree a price so that the paperwork can be organised by 4:00pm on the day of the quote. If your volumes are large and you have a positive attitude to managing risk you may opt to buy gas on a flexible contract this will allow you to follow the market up or down. 
 
What we can do? 
Your account manager will talk through the process and help you to avoid the ‘take-or-pay’ traps. Prices for your contracts will be priced in order to give you total cost of ownership so you can compare like for like. Going forward you account manager will help with enquiries and terminations to help you manage your gas purchasing for the future. 
 
 
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