Our Business electricity bill forecast is for energy managers, finance and managing directors and company boards who require insight into the future level of business energy bills to help plan, budget and support investment decisions with accuracy.
Energy costs can have a material impact on business profitability, cash flow and solvency. It is also increasingly an important element of cost benefit analysis for options relating to a business’s Environmental, Sustainability and Governance (ESG) strategy.
Businesses are engaged in these activities against a context of a rapidly changing energy market, with electricity bills influenced by both global commodity markets, domestic markets, and national and international policy and regulation, and understanding of these important variables will often sit outside the core focus of the business as a whole.
The service
Our Business electricity bill forecast will provide an accessible, understandable and useable trajectory of your bill costs, and its component elements, over five years and as a result aligned to a business’s typical planning, budgeting and strategising time period. This insight has multiple applications for energy procurement and contracting, financial planning, and strategic or investment options cost-benefit assessment, with benefits for senior management, executive director and board-level decision making. Being better informed about the evolution of bill costs over time, which are becoming increasingly volatile and influenced by complex regulatory and policy initiatives, will help to better inform your business decisions.
Who’s it for?
- energy managers,
- finance and managing directors
- company boards
Key components
You will receive a forecast of the core elements of your electricity bill, broken down individually, and presented on an annual basis in real and nominal terms over a rolling five-year analysis period. We use the period 2021-22 to 2025-26 inclusive and forecasts are presented using a standard business customer archetype (High Voltage, Half-Hourly Metered customer).
Your forecast will be issued quarterly in MS Excel format, with an accompanying MS PowerPoint presentation, which highlights key drivers and other market factors.
The complete power price forecast uses our Third party charges and Benchmark power curve forecasts, and is therefore based on an already established methodology by Cornwall Insight for its quarterly delivery of forecasts. We use a five-year forecast horizon, which includes network costs, low carbon levies and policy costs.
