Business Energy Basics: Troo’s simple guide to your club’s energy

You got into rugby for drama on the field, not to be distracted away from it.

Energy is the foundation of your club’s operations. From changing rooms and team facilities to floodlights and scoreboards, power is essential.

However, bills are rising, volatility is increasing, and navigating the energy market can be costly, complicated and time-consuming.

Troo has created this simple overview of business utilities, including gas, electricity and water, to help your club understand some of the key considerations.

Understanding the basics of business energy can help you understand your costs, assess your options and make informed decisions in this uncertain world.

How is business energy different to domestic energy?

It’s important to clarify immediately: your business energy contract doesn’t work like your home energy contract.

One fundamental difference between business and domestic energy is that businesses are not protected by Ofgem’s UK energy price cap. Organisations tend to sign fixed-term contracts, which can provide greater certainty around their energy costs.

Businesses are also usually required to pay the full 20% VAT rate.

Why are business energy bills so expensive?

Ready for bad news? Your bill doesn’t just feel high – it is.

UK businesses pay more for their industrial energy than any other member of the International Energy Agency (IEA) where data is available, according to the Department for Energy Security and Net Zero.

Rising network costs to pay for new infrastructure, including cables to connect renewable sources to the national grid, are also adding to costs for clubs and businesses.

Who are the best energy suppliers?

There is no such thing as a cheapest or ‘best’ business energy supplier.

Every club is different. The options available will depend on your specific operations, requirements and circumstances – and you may have a greater choice than you think.

The ‘Big Six’ companies supply 90% of domestic and small business customers, but many reputable smaller companies are also active in the market.

The most suitable supplier and contract will depend on each club’s individual circumstances, so it is important to consider the available options carefully before entering into an agreement.

How to read your club’s energy bill

Understanding your energy bill is the first step towards knowing whether you are on the right deal. Here are some of the key terms you may encounter:

• Standing charge: The fixed fee you pay every day regardless of usage.
• Unit rate: The cost per unit of energy you use, measured in pence per kilowatt-hour (kWh).
• Contract length (term): The length of your agreement.
• Termination notice period: The amount of notice you must give your supplier to leave them.
• Billing type (estimated vs. actual): Not providing meter readings could lead to you being billed for estimated figures.
• VAT and other taxes: A series of taxes, levies and reliefs should be listed.

Three ways to reduce your club’s energy costs

There are three fundamental areas to consider when looking to manage your club’s energy costs:

• Review your energy contract: Understanding your usage, unit rate, contract terms and available options can help you assess whether your current or prospective contract meets your club’s requirements.
• Boost your efficiency: Using less energy – and using it smarter – means you can start bringing down your costs today.
• Weigh up renewables: Wind power is the biggest source of energy generation in the UK, while solar power is becoming increasingly popular for sports clubs to generate energy on-site. Green tech is now a practical business consideration.

Making decisions about your club’s energy

Troo exists to help businesses, including sports clubs, make sense of their energy needs.

Troo simplify information and help you make smart decisions that manage costs and lead to real change. Troo are here to understand what matters to you, offer clear advice, and own the hard parts, so energy becomes one less thing to worry about.

Troo are offering a free energy health check to National League Rugby clubs for practical advice on business electricity, gas and water procurement, renewable consultancy and Troo’s ongoing management services.

About this guide

Troo has provided this guide as general information to help clubs understand some of the key considerations around business energy, gas, electricity and water.

For more information about Troo, please contact Sean Gleeson: sean.gleeson@troocost.com

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