Constituency office utility bills for 2023-24

We have seen some offices adversely impacted by increasing energy costs over the past year.

Some suggestions on how to mitigate the impact of increases and what to do if you run into difficulties are outlined below.

Speak to your account manager

IPSA wishes to support those offices where constituency office utility costs are adversely impacting services to constituents despite taking a prudent approach to spending decisions. We encourage you to speak to your Account Manager in the first instance.

Your account manager is also available to help if you need guidance on budget planning and management.

Understand how energy prices and usage have changed

Both domestic and business energy costs have increased dramatically over the past few years.

For businesses, it has not been uncommon to see price increases of 400% or 500% during this period.

For some, price increases will have been higher.

This means for an office coming out of a two- or three-year fixed-term contract in 2023, energy costs for their constituency office may increase by around that amount.

The government has announced further support for non-domestic energy users for 2023-24 which provides certainty for the whole 2023-24 financial year.

Non-domestic energy users, however, will see bill increases compared with the last six months under previous arrangements.

Understand your current provision and prices

If you are in an office that is sublet or serviced, consider discussing with your landlord about whether they anticipate any changes to utility costs over the coming year.

If you rent an office and your utility arrangements are managed directly by your supplier, knowing whether you are currently on a fixed-term contract, what your contract renewal date is, and having an understanding of your current costs will help you assess the potential impact of price changes this year.

When fixed-term contracts end, there is the potential for energy bills to increase significantly.

You should also consider how your energy use might change over the coming year. More staff now working in the office – or being on-site more frequently – can all impact your energy usage and therefore costs.

If you have recently moved office, this will also impact on your energy costs.

Ensure you have taken a recent meter reading

If you have not had a recent meter reading, you could be paying more than you need to because your bills will be based on usage estimates. It might also be the case that when a meter reading is taken, you have a large and unexpected bill to settle with your supplier, as your usage may have been underestimated.

Taking a meter reading sooner rather than later – and doing it regularly – helps you to manage any unexpected costs in good time.

Check your supplier is billing you regularly

Sometimes suppliers will not bill you regularly. This could be because of an administrative error on the part of the supplier.

Checking that your bills are arriving regularly will help you manage your budgets more effectively, and ensure you are not left with unexpected costs.

Consider speaking to brokers before your contract ends

Some energy suppliers are starting to open up to new contracts and some brokers are accepting clients who were coming to the end of their current contracts, rather than waiting for clients to be out of contract.

Contacting a broker may help you understand whether any options are suitable for your office provision.