CLA ENERGY CLUB
TAKE CONTROL OF YOUR ENERGY COSTS WITH AN ENERGY BASKET
Managing a farm or estate is challenging enough without unpredictable energy bills adding to the pressure. While we can’t always control energy prices, an energy basket offers a practical way for CLA members to access competitive terms and simplified contract management, without the need to negotiate alone.
The CLA Energy Club brings together CLA members, allowing everyone to benefit from the combined buying power of a larger group. This can help even out fluctuations in the market, making it easier to manage your energy contract with confidence.
WHAT IS AN ENERGY BASKET?
An energy basket allows businesses to pool their energy needs, foaming a larger group that can negotiate for better terms with suppliers. By combining demand, the group gains greater buying power, which can lead to more competitive pricing.
Even though you’re part of a larger buying group, each farm or estate keeps its own individual contract, tailored to your unique requirements. This way, you retain control over your supply while benefiting from the group’s strength.
WHY SHOULD I JOIN? BENEFITS AT A GLANCE
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Competitive rates: Access pricing typically reserved for larger energy users.
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Simple process: We handle the negotiations and supplier management for you.
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Tailored contracts: Get a contract that reflects your specific energy needs.
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Expert support: Our energy specialists will guide you through every step.
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No hassle: Enjoy a simpler approach to energy procurement while focusing on running your business.
HOW DOES AN ENERGY BASKET WORK?
Here’s how the energy basket process works:
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Join the basket: We combine your farm or estate’s energy requirements with other CLA members, building a larger group with increased buying power.
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We negotiate on your behalf: Our energy experts will work with our preferred supplier for the CLA Energy Club, to secure competitive terms for the group. Pricing is set annually, and each contract is structured to reflect market conditions as closely as possible. The goal is to lock in favourable pricing that individual farms might not be able to achieve alone.
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Your tailored contract: Every CLA member in the basket receives their own contract, tailored to your specific energy needs. You benefit from group pricing but maintain full control over your individual supply.
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Ongoing support: Once you’re in the basket, we continue to manage your contract, monitor market changes and provide updates. You’ll have access to ongoing support and information about any future opportunities.
VIDEO: ENERGY BASKETS EXPLAINED
This short video explains the basics of energy baskets – what they are, how they work, and the potential benefits. It’s designed to help you understand how joining a basket can make managing your energy contract simpler.
FREQUENTLY ASKED QUESTIONS
WHO CAN JOIN AN ENERGY BASKET?
Any CLA member can join. Whether you manage a small operation or a larger farm, the basket is open to businesses of all sizes.
WILL MY PRICE BE FIXED FOR THE DURATION OF THE CONTRACT?
Pricing is confirmed annually, with prices fixed at the beginning of each 12-month delivery period (starting in April and October). This fixed pricing includes all third-party costs, giving you a clear budget for the year ahead. If your current contract ends outside these start dates, we can arrange a bridging contract to cover the gap.
IS THERE A LONG-TERM COMMITMENT INVOLVED?
The CLA Energy Club operates on a three-year term. You can renew annually within this period, and each year, we’ll review the terms with you to ensure the arrangement meets your needs.
WHAT ARE THE RISKS?
Flexible purchasing contracts, like the basket, allow energy to be bought over multiple intervals, rather than at a single point, helping to reduce exposure to sudden market spikes. However, as with any market-based approach, there’s no guarantee of securing lower prices, as wholesale costs fluctuate based on market conditions. Additionally, non-commodity costs (such as network and regulatory fees) may change throughout the contract period, as these are set by regulators.
WHAT IF I CONSUME LESS OR MORE THAN MY FORECASTED VOLUME?
The flexible purchasing contract accommodates variances within a tolerance band of 80% to 120% of forecasted use. This setup helps lower the risk of volume imbalance charges and reduces supplier premiums, offering flexibility not available in standard fixed contracts.
HOW CAN I BE SURE THIS IS THE RIGHT OPTION FOR MY FARM?
Our team will assess your current energy situation and provide guidance on whether joining the basket is the best option for your farm. We’ll always be upfront about what works best for you.
WHAT IS THE DIFFERENCE BETWEEN A FIXED CONTRACT AND A BASKET?
A fixed contract locks in your energy prices for a set term. In contrast, the basket uses a flexible purchasing approach, where energy is bought at multiple points before the start of the delivery period. This flexible option allows for better adaptation to market conditions, potentially securing favourable rates if market prices dip before delivery begins.
HOW DO I JOIN?
Joining is straightforward. There are two enrolment windows per year. Contact us to discuss joining, and if your current contract ends outside these periods, we can set up a bridge contract.
WHAT HAPPENS IF I WANT TO LEAVE THE BASKET?
If you find the basket isn’t working for you, you can exit at the annual renewal. However, you would need to remain with the same supplier for the term of the contract, and we’ll work with you to find an alternative product that suits your needs.
WHY SHOULD I CHOOSE A FLEXIBLE PURCHASING ENERGY CONTRACT?
Flexible contracts allow you to benefit from potential market dips, securing energy when prices are lower. The flexibility also reduces the need for volume tolerance penalties due to the larger volumes managed within the basket.
WILL I BENEFIT FROM THE FLEX PURCHASING?
We can’t guarantee specific outcomes, as market conditions directly impact the wholesale cost of energy. However, the ability to purchase energy at multiple points offers a chance to benefit if prices fall before the delivery period. Non-commodity costs, however, are set by regulators and cannot be influenced by the basket.
INTERESTED IN JOINING THE BASKET?
If you're ready to explore how joining the CLA Energy Club could benefit your farm, get in touch with us today. We’ll walk you through the process, answer any questions, and help you decide if this is the right move for your business.
