We’ve recently published our bespoke Benefits Statements which detail both the cashable and non-cashable elements that each individual Member institution receives. As part of our commitment to transparency and collaboration, we’re now excited to share this information on the overall TEC portfolio.
Being a TEC Member nets significant benefits
Savings for the year are up from £6.6 million to £9.4 million across the full TEC Portfolio. Of these savings, £1.7 million was due to aggregation and this saving is cashable, meaning if a Member contracted directly for their energy, they would have paid £1.7 million in additional supplier margins. This is despite reported tighter supplier margins in the year to July 2019.
Avoiding costly tender and procurement exercises by utilising our compliant frameworks, whilst taking advantage of our expertise saw Members avoid £930,000 of procurement cost based on our core sector reporting methodology.
The switch to flex of the remaining fixed members saw around £260,000 of savings realised.
How much energy are our Members using?
Total consumption on the portfolio was just under 3 Terawatt Hours (3 billion kWh). This broke down to 1.7 TWh of gas, 1.25 TWh of electricity. To put this into perspective, this is enough energy to power 280,000 households (or three large towns) for an entire year. Gas saw a year-on-year increase of just 0.5% even with the addition of significant new member volume, while electricity saw an increase of 3.5%.
The last four remaining Members switched from a fixed to flex product with annual usage totalling 21 million kWh, leaving the portfolio now entirely served by our flexible frameworks, a change that was completed just after the reporting year end.
We continue to grow, delivering the benefits of an expanding aggregated portfolio
We’re pleased to announce we’ve grown (again) with 10 new Members joining us during the reporting period!
We’re up to nearly 7,500 meters with our overall annual spend reaching £200 million for the first time, up by £25million. The average annual spend per Member was £1.75 million whilst the smallest was £47,800. We’re proud that our collaborative approach enables smaller institutions to access the benefits that a large aggregated portfolio can bring.
Even with our “Freeze on Fees” and the benefits of aggregation, the spend of Members who were reported last year (existing and flex) is up by 12% on the previous year while consumption on these members is actually down by 2%. So despite a milder winter and members’ successful efforts to reduce energy consumption, increases in regulatory non-energy charges, in particular on electricity, are clearly having a continued impact on energy spend. More than two thirds of the cost increases are being driven by energy policy, in particular the decarbonisation of electricity generation.
Finally, we launched our no cost Bill Validation Service (The TEC Check) in May 2019 which had already validated over 107,500 invoices when the Benefit Statement reporting period came to an end.
Richard Murphy, Managing Director Said:
“At TEC our focus will always be on delivering savings and improving value for money through low fees and additional services. I am delighted this trend is being maintained as return on fees has increased again this year, the fourth in a row. As areas such as carbon reduction gain greater focus for the future, TEC will need to measure and report other benefits which might not be readily measured in financial terms. Having said this £9 million is clearly a result of which we can all be proud”