Tuesday 21st of November 2017 | Posted In: Generate, Generating energy

PPA stands for Painful Purchase Agreement

Do you know…

  • How much you are really paying your energy advisor/broker?
  • What your contractual commitments are to your broker and energy supplier?

It can be well worth checking.

A customer with an Anaerobic Digester (AD) recently approached us for help with his Power Purchase Agreement (PPA) as he wasn’t overly impressed with the level of service he was receiving from his current broker. However, as we stepped in to take over, we discovered he had signed a five year PPA for the electricity he generates. In isolation, this wasn’t too bad but the real surprise for him was that the PPA included a significant commission to be paid to his current broker; for the full term of the PPA even if the broker does no further work. For a 500kW AD, it added up to £50,000 over the 5-year term.

Anyone who generates enough electricity to sell to the grid needs a PPA and as with any contract, there can be hidden charges and small print to be aware of.  Our Generation Management Service is honest and transparent with a fixed monthly fee and NO hidden commissions. We carry out impartial analysis of PPA offers to find out which would be most suitable for you and our fees depend on the type of export agreement that you require and how much ongoing support you require.

So the moral of the story is to look out for the small print! Give me a call on 024 7669 8899 to discuss your power generation and the type of PPA that would best suit your needs.