CUB to launch their new Gas Basket at Sustainability Live 2015
24 March 2015, News release from CUB (UK) Ltd
CUB (UK) Ltd are looking forward to exhibiting at Sustainability Live this year where they will be celebrating 20 years in business and launching their new Gas Exclusive Purchasing Collective, a gas basket with some unique selling points.
Gas Exclusive Purchasing Collective
Unique Selling Points and Key Contract Points
• Ability for customers to benefit from group purchasing under a basket strategy
but still remain autonomous.
• Customers sign their own individual supply contracts with GDFS with site specific charges.
• The customer has the option to exit the basket at any time by carrying out a "Balance of Contract"
fix for their remaining volume.
• No Take or Compensate on customers with AQs of below 2m therms.
• Customers with an AQ of over 2m therms have an associated +/- 20% tolerance levels. The tolerance
position is assessed for the basket as a whole and only if the entire basket is outside of this tolerance do
GDFS look to invoke take or compensate and even then only on the customers that have breached -
"polluter pays" approach.
• Cross subsidy only in terms of the benefits of group purchasing and the assessment of Take or
Compensate, in all other aspects the customer remains autonomous.
• Contract includes GDFS' "Best of 4 Screens Guarantee"
o For transactions in multiples of 1,000 therms/day between 1,000 and 25,000 therms/day
o 4 Screens are: Tullet Prebon, GFI, ICAP & Spectron.
• Option to fix 100% of the volume at a Day Ahead price without a monthly cashout process.
Many businesses want to take advantage of the benefits of purchasing gas on the live energy markets that in the past have been restricted to larger organisations.
CUB (UK) Ltd, together with GDF Suez, has developed an exclusive product that lowers the entry requirements for businesses looking for a flexible gas contract. The Exclusive Purchasing Collective (EPC) allows businesses who consume more than 1,000,000 kWh of gas, a transition to live energy markets and access to the best energy prices through the CUB procurement team.
Structured around proactive purchasing, multiple purchases are made from a choice of four trading screens, to an agreed buying strategy, throughout the contract duration. In this way the EPC reduces the risk of taking one single fixed price, while retaining budget certainty. There is also a multiple choice of default mechanisms to take advantage of changing market conditions. (Including the advantage of having access to average day ahead not the weighted day ahead offered in most flexible products). These are features that will appeal to many businesses that are looking to reduce costs and deliver on their financials.
As members of the EPC are buying as a group the overall prices are immediately lower than they could achieve individually, due to the reduced risk premiums that suppliers apply to companies within group purchasing plans. However the EPC is different to many other baskets. It is still a group of customers contracted together but importantly they are able to retain their individual cost base without subsidising the other members of the collective.
CUB has put this basket deal together with the end user firmly at the front of their minds and has negotiated bespoke Terms and Conditions that benefit and protect the members of the EPC including the ability to change from a flexible contract back to a fixed contract at any time during the contract period. There is also no take or pay for members of the basket with an AQ less than 2 Million Therms.
Businesses considering flexible purchasing for the first time will be comforted to know that the EPC offers complete transparency of processes and prices together with regular reporting to provide all the information they need to satisfy themselves that they are on target to meet their budgets.
Jaqui Fairfax (FCCA)
Jaqui is Chairman of CUB (UK) Ltd has seen the business grow from a small partnership to the thriving award winning energy consultancy that it is today.
"We are proud of the fact that many of the clients that came on board with us in 1994 are still with us and that our relationships have flourished and strengthened based on mutual trust, honesty and understanding." - Jaqui Fairfax
She came to work for the business in 1999 but prior to that she worked in many different industries including manufacturing and retail and is able to understand the opportunities, issues and challenges they experience.
CUB (UK) Ltd
Founded originally as a family run business in 1994, the family values and ethics still remain strong within the heart of CUB. CUB is known for community work and recognised for its high level of corporate social responsibility.
Gaining trust is important to us and our number one priority is our clients. CUB takes pride in servicing client needs and providing a personable service to add value and keep customer satisfaction at our 5 star level..
Our offering includes:
• Exclusive purchasing collective for gas and electricity
• Flexible Purchasing
• Energy procurement for gas and electricity
• Efficiency services that include water auditing and bill validation
• Management services that include on-site audits and kVA reduction
For further information please email CUB (UK) Ltd