NFU Energy launches service to remove energy price volatility for manufacturers
The
manufacturing industry service launched today, NFU Energy Tailored Contracts is an alternative energy service specifically designed to help
industrial manufacturers manage volatile energy markets with smart, dependable,
transparent and flexible solutions at competitive rates. Now manufacturers can lock in favourable
energy rates, adapt to changing conditions, and budget with confidence, all
backed with clear and honest support from a dedicated team to help cut through
the complexity.
Lisa
Howkins, Sales and Marketing Director with NFU Energy comments; “With
increasing pressures to reduce cost while reaching ever more ambitious ESG
targets, we have seen the need for robust energy management grow, in sectors
way beyond agriculture. Manufacturers face many of the same challenges, to
optimise energy usage and control cost, to navigate this impact and remain
competitive in the market.
“Tailored contracts are about opportunity,
they require active management but can result in greater cost savings and
adaptability. For manufacturers looking to stay agile with their energy costs,
and make informed decisions on energy spend, tailored contracts can present
many opportunities for savings but can be difficult to navigate without
guidance. This is the role NFU Energy plays, as a trusted and transparent
advisor to support informed decision making, enabling businesses to buy energy
smarter and for the long term, not just cheaper.”
NFU Energy Tailored Contracts offers:
●
Predictable
cost control:
Secure
fixed or partially flexible commodity costs and third-party charges, ensuring
stable budgets throughout the contract term. The ability to fix costs means
manufacturers can avoid market surges, enabling accurate forecasting and
financial planning for up to 36 months.
●
Tailored
hedging strategies:
A
range of intuitive options to lock in rates at optimal times, balancing
security with market opportunities.
●
Adaptive
flexibility:
Adjust
to price fluctuations or business growth without being trapped in high-rate,
long-term contracts allowing manufacturers to capitalise on price dips or
adjust volumes as needs evolve.
●
Market
volatility protection:
Shields
business from unpredictable price spikes with proactive risk management, saving
up to 15% on energy costs (based on industry hedging benchmarks).
●
Sustainability
and compliance:
Align
with net-zero goals and UK regulations (SECR) through energy-efficient
strategies that optimise energy use to reduce carbon footprints, improve EPC
ratings and showcase ESG commitments.
●
Scalability
for any business:
For
medium to large-scale manufacturing operations, the contracts are adaptable to
accommodate any size facility, growth trajectory and with modular plans for
diverse operations.
NFU
Energy experts are on hand to analyse energy usage, business goals and market
exposure to tailor a strategy to meet priorities. Manufacturers can choose
between fixed, flexible, or hybrid hedging options, locking in favourable rates
and helping to manage risk tolerance. NFU Energy will then track markets on an
ongoing basis to alert customers to opportunities for rate adjustments or
volume changes, maximising savings.
The
service for manufacturers also offers stepped hedging to secure price certainty
while staying open to market drops. The stepped hedging approach gradually
locks in portions of electricity costs over time. By spreading out price fixes,
market fluctuations are captured achieving a lower average cost per
kilowatt-hour (p/kWh), balancing stability with savings.
Manufacturers
can also tailor energy pricing to
fit any operational rhythm, whether that be a seasonal variation or to cover
specific production periods, the tailored contracts allow the setting of set
electricity prices at the times that matter most. This ensures energy costs
sync perfectly with business planning and pricing.