As the business world constantly changes, skilled entrepreneurs seek new ways to maximize their financial resources.
There are so many options and methods for saving and making money that you might wonder what strategy to focus on. One strategy that has proven to have the biggest impact on your investing portfolio is wisely using discount schemes for your energy bills.
Not familiar with them? That’s okay – In this article, we’ll explore the nuances of using discount plans to strengthen your investment capacity. You can find a ton of discount schemes for your energy bills that’ll help you save money and, in turn, increase your investments.
Overview of Investment Pots
To truly make the most of every opportunity, it’s crucial that you know as much about it as possible! And that includes being clued up on all the pros and cons involved. So, to ensure you can reap the rewards of your investment pot, let’s examine the features and risks involved.
What is an investment pot?
On the GetGround Platform, an Investment Pot, also called an Investment Account, permits investments in the BlackRock ICS Sterling Government Liquidity Fund.
The reason we use Investment pots is to maintain capital and produce a moderate income. And they specialise in short-term government debt and repurchase agreements.
The first step to success is to make the right investments before you can start implementing strategies to help grow them.
Understanding these risks allows you to make informed investment decisions through Investment Pots. A few risks that you’ll most likely encounter on your investing journey:
- Liquidity Risk: When the market is going through a rough patch, selling investments at fair prices may be challenging due to their limited marketability.
- Timing Risk: Variations in the market during execution windows may cause order and execution prices to diverge.
- Risk of Service Interruptions: Market interruptions and technical problems may impact order submissions or cancellations.
- Risk Associated with Interest Rates and Inflation: Changes in either of these factors may harm your overall investment results.
- Insolvency Risk: Service providers may be harmed by asset issuer default or insolvency events that limit their ability to access funds or submit orders.
UK Energy Market Dynamics
It’s no surprise that the UK energy market is known for its high degree of volatility. Over the last couple of years, Britain has definitely been experiencing an energy crisis. This is due to several reasons, such as geopolitical tensions and supply uncertainties.
Handling The Ever-Changing Energy Prices
The importance of strategic planning is further shown by the variations in the wholesale prices of energy and gas. Although there is some short-term relief following the recent price reductions, long-term projections indicate persistent challenges.
Your company can maximise its energy contracts and significantly lessen the detrimental effects of price fluctuations on its bottom line by seeking professional advice.
Capitalising on Government Grants and Initiatives
Grants and initiatives from the government become significant business prospects when the market shifts.
For example, grants have reduced the cost of heat pumps relative to conventional gas boilers, encouraging firms to switch to green energy sources while deducting installation expenses.
UK Government Grants and Schemes
- Energy Bills Discount Scheme (EBDS): During specific periods, eligible non-domestic consumers will receive discounted rates on gas and electricity unit prices.
- Heat Pump Grants: Your business can get up to £7,500 towards the cost of heat pump installations.
- Climate Change Levy: This scheme aims to reduce environmental impact by encouraging businesses to be more environmentally friendly.
- Energy Bill Relief Scheme (EBRS): This scheme supports businesses with a non-domestic energy account, including the voluntary and public sectors, during specific periods.
- Energy Bill Discount Scheme: Eligible non-domestic consumers will receive discounts on electricity and gas unit prices during specific periods, subject to certain price thresholds.
Embracing Competitive Tariffs and Strategic Partnerships
What affordable energy solutions might work for your company? If market conditions change, the possible reintroduction of competitive rates offers a hopeful future.
Programs like “Blend & Extend” allow companies to maximise their energy contracts and adjust to shifting market conditions by forming strategic partnerships with energy providers.
Blend and Extend
In case you were wondering what exactly this is, it’s when you negotiate with energy providers for a lower rate by agreeing to a longer-term contract. By implementing this simple strategy, you can help save money on energy bills immediately.
Still, it also binds you to your existing provider for a longer time, which might not be ideal if rates do decline in the future, but it’s a risk worth taking to lock down good deals when you have the chance.
Final Thoughts
Now that you know more about investment pots and hopefully learned some strategies on how to increase yours by taking advantage of discount programmes today. All you need to do is a bit of proactive planning and strategic vision.
You can easily boost your investment potential by researching government initiatives, forming strategic partnerships, and remaining updated about market developments.
The best part is, you can always hire a professional to take care of it! Stop procrastinating and take the first steps today to successfully navigate the energy market and equip your company for long-term, sustainable growth.
Sources
https://www.professionalenergy.co.uk/blend-and-extend-energy-contract/
https://www.getground.co.uk/hubfs/Investment-Pot/Key-Features-and-Risks.pdf?hsLang=en
