A multi-site commercial operator
Tariff rebuilt from half-hourly data
- Annual saving
- £86,779
- commodity cost, no capital spent
- Commodity cost reduction
- 12.0%
- day-ahead pass-through vs bundled flexible rate
A multi-site commercial operator asked a simple question. Are we paying what we should be? It is a hard question to answer, because the portfolio sat on a bundled flexible rate. That single number folded wholesale cost, shaping, imbalance risk and supplier margin together. Nobody could benchmark it, because there was nothing to compare it against.
So we took it apart. Vester priced the portfolio’s actual half-hourly load against a day-ahead pass-through structure, where the rate moves with the disclosed market price plus a stated fee. Moving to it cut commodity cost by £86,779 a year, a reduction of 12.0%. No capital was spent. Nothing changed in how the sites ran.
The saving did not come from a keener rate. It came from a better structural fit. A bundled figure charges every site the same shape, whether or not that shape matches how the site consumes. Once the structure moved to a rate that tracks the market, the portfolio’s own demand pattern did the rest. The sites were already efficient. They were simply priced as though they were average.
Then we went further, using the same half-hourly data to model battery storage. Storage shifts consumption away from peak-price periods and holds cheaper power for when the sites need it. Tariff and battery, modelled on one dataset, reached a combined payback of around 3.3 years.
The lesson holds beyond this portfolio. A flexible rate is not automatically a competitive rate. It is often just an opaque one. When a business cannot see the components of its price, it cannot know whether that price is fair, and the market has no reason to volunteer the answer. Measuring the load first is what makes the market visible.
Published Last updated