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EDF Energy and South Staffordshire Water signed a five year, fixed price energy deal.
The first of a kind, £50 million contract will run until 2020 when South Staffordshire’s next investment cycle finishes.
The contract fixes the majority of the water company’s electricity costs from the day the deal was signed in February 2014, meaning the prices will be held from the start of the deal in 2015 until 2020.
EDF Energy has said it can offer contracts which allowcompanies to fix their energy prices for up to five years, and claims, “We are even able to offer prices out as far as 2024”.
Keith Marshall, managing director at South Staffs Water, said: “We believe that our customers can only benefit from this efficient approach.
“Electricity accounts for almost 20 per cent of our annual costs, second only to salaries.
“We looked for an energy company that understood our purchasing needs and were willing to bring both their expertise and a competitive price to the table.
“This contract means South Staffordshire Water can better focus attention on energy reduction and carbon management rather than trying to beat the wholesale market.”
Sid Cox, director of the business division at EDF Energy, said: “We know that businesses are looking for ways to control costs and reduce risk.
“Businesses wanting to get long-term price certainty should follow South Staffordshire Water’s lead.
“Partnership with our sister company EDF Trading made this unique purchasing approach possible and I believe this industry first would also benefit other businesses that want longer-term price certainty.”
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