Presenter-V9

PS Utilities

The Service

The ‘complete’ energy procurement service

Account
manager

Independent 24 suppliers
Procurement

strategy

Comparison of Unique
costs contracts

Prices 4 years in 5 year fixed
advance priced contracts

 Type  Success level
 Old Colleagues  80-100%
 Referrals  70-80%
 Networking - face to face  30-40%
 Networking online – linked in  2-3%
 Direct marketing (door to door) ?
 Mail shots ( without a relationship)  0.01%
 

End to end customer service

Energy procurement Process

New / Upgrade Gas Cot’s & COO’s Contract Objection
or Electricity supply administration management

installation

Contract
End /Start Date

New Meters Cost comparison Contract Bill query
from 24 supplier termination management

PS Utilities

The Market

Historical Energy Market Rises

180.00% Historical Energy Cost Rises Including CCL

160.00%

140.00%

120.00%

% Increase 100.00%

80.00% Elec - Yearly
60.00%
40.00% Gas - Yearly

20.00%

0.00%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

Year 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

PS Utilities

Non-commodity cost
Risk and opportunity

Breakdown of Energy Costs 2012

> With fixed contracts (A) customers > In reality the average customer bill
are typically used to paying a rolled up is made up of around 60% wholesale
price for all elements of their bill (including the commodity costs and 40% goes
wholesale commodity costs and to pay for non-commodity elements
distribution/governmental charges).

A Non-Commodity

100% Total Energy 40%
Price

60%

Commodity

> The c.60% of commodity costs are what you can control and will purchase
via the wholesale market.

> Varying Non Commodity costs apply to the HH market , non HH market spaces and gas

Non-Commodity Cost Breakdown 2012

Data Collator 0.02%

Management Fee 1.15% TNUoS 5.69%

DUoS 14.42%

Commodity Cost 60.84% Dloss 6.08%
Tloss 0.70%
Imbalance 0.27%
Feed in Tariff 1.99%
RCRC -0.01%
Hydro 0.20%

RO Cost 6.82%

BSUoS 1.80%

Delivered Price Breakdown - Today

Based on charges today Based on Apr 17 for 12 months

COE 48.76% Non COE 51.24% COE 42.11% Non COE 57.89%

Delivered Price Breakdown - Future

Based on Apr 17 for 24 months Based on Apr 17 for 36 months

COE 40.16% Non COE 59.84% COE 38.39% Non COE 61.61%

Growth of non–commodity costs

Commodity v Non - Commodity

120%
100%

80%
60%
40%
20%

0%

2012 2017 2018 2019 2020
Commodity No Commodity

PS Utilities

The Products

PSU the products

SME - Online energy procurement Custom deals
portal
• P272 maximum demand meters
Plus Instant quote, instant contract option • STOD meters etc
• Collective purchase
• Multiple sites

Corporate tenders Forward pricing

HH Electricity meters Energy basket / consortium
Gas 236,000 kwh

Forward pricing

Contract Start Date Last Contract Contract
Start Date 4 years End Date 5 years

Up to 4 years
Contract window up to 5 years

Why choose the PSUtilities Consortium

Offer customers an Provide customers Risk management
innovative, with budget in a volatile energy
certainty with
additional option market place
to fixed price additional saving
potential

Consortium - Product Overview

Fixed maximum price - but prices can go down
Long term 5 year contracts – with yearly extension option
Fixed commodity & non commodity costs for contract duration

No ‘take or pay’ clauses
28 Day termination

Consortium - Product Overview

£40m committed spend
Collective anniversary date

Fully managed

Consortium

Contract Start Date 31st July last sign up date October 2016
Consortium start date

Last sign up date

Temp contract

Contract end date 30th
September 2020

 The 11thlargest company in the world. The 4th largest Gas
and Oil Company in the world.

 In 130 countries
 100,000 employees
 Global leader in solar energy generation technology (see An

electricity generator
 Exploration & Production in more than 50 countries
 Gas distribution
 Trading and shipping
 Refining and chemical