The costs associated with energy to heat and light the communal areas of Notting Hill Genesis’ estate have always been a significant part of the service charges for customers. However, in the midst of a cost-of-living crisis, the importance of minimising the impact of service charges on Notting Hill Genesis tenants and helping to protect against unexpected budget overspends was placed high on the agenda.
This is why over the last year, they’ve been working closely with energy management and sustainability experts Inenco to help mitigate the risk of spiralling energy costs.
Whilst Notting Hill Genesis and Inenco have worked in partnership for over 7 years, the services provided have varied. With Inenco currently managing over £2.4 billion in energy procurement for customers across the UK, tapping into their expertise and advice has helped to secure significant savings.
In the spring of 2022 Inenco locked in an energy procurement price for the year that shielded Notting Hill Genesis from the very worst of the year’s spiralling prices. This has meant avoiding costs of nearly £8 million – with a saving totalling £3.6 million for electricity and £4.4 million for gas – this being the difference between the price paid versus the market high during the year.
The price for forward years is subject to change but at present, the buying strategy agreed upon between both organisations could yield a further benefit of tens of £ millions and the experts at Inenco monitor the market daily to assess when it might be timely to trade for us to achieve further benefit.
In addition to the benefit Notting Hill Genesis and its customers are gaining from long-term energy trading, Inenco also provides an invoice validation service. Meaning that they meticulously check the accuracy of energy bills.
Utility bills are notoriously inaccurate and Inenco’s experience is that at least 1:5 contains a material error. By validating the invoices for their mathematical accuracy and whether relevant taxes and levies have been appropriately applied plus a range of other factors – a further £406,000 of costs have also been avoided.
Notting Hill Genesis and Inenco are continuing to work in partnership to optimise the benefit helping to keep service charges as low as possible.