- Wholesale Gas Prices

Wholesale Gas Prices & How To Get Them

Come and join our portfolio of over £1 Billion of delivered energy -  Traditionally reserved for those companies with a minimum energy consumption of 50GWh per annum, it is possible to trade your commercial gas requirement as a commodity in the wholesale  gas market, much in the same way that traditional energy suppliers buy from this market at the moment, to supply energy direct to its own customers.  However by combining the energy consumption of a number of businesses in a portfolio arrangement, sometimes called an energy basket, we can trade this portfolio as a notional company and thereby bringing the advantages of the wholesale gas market to much smaller organisations.

Wholesale Gas Market Trading

Conventional tender style purchasing, leaves clients at the mercy of the market on any given day as gas prices, since de-regulation, now fluctuate hourly. The supply of energy and the price you pay is divided into three main components. 

A.  Generation - accounts for 70% of the final billed price
B.  National distribution - accounts for 25% of the final billed price
C.  Local distribution, billing and cost to serve - accounts for 5% of the final billed price.  This also includes a risk margin and is usually dependent on the economic climate and current market volatility. 

In conventional tendering the main area for pricing flexibility is in area C and thus there is little room for manoeuvre. Purchasing direct from the wholesale gas market takes us to area A, where 70% of price is generated and energy is purchased flexibly.  Eg energy can be bought for delivery tomorrow, next week, the coming month (s), the coming year (s).

Key Wholesale Gas Points 

• Join a portfolio of over £1 Billion of delivered energy or over 13TWh
• Join and combine over 11,000 individual energy supply points
• Combine energy purchasing and buy energy direct from the wholesale energy markets
• Active risk management
• Access Financial Services Authority regulated energy traders
• Minimum annual gas spend of 150k+ required

How Does It Work?

Catalyst will position groups of companies to enter into an 'energy basket' which will join with the £1bn worth of energy being placed by our energy trading partners on behalf of our clients. Based on their trading activity, a price will be set on t he 1st April ot 1st October each year for delivery across the following 12-months. Before you enter the basket Catalyst will, if necessary, provide you with short term contracts so you can enter into the basket at the correct time.

The combined requirements or 'energy basket' is managed by our energy trading partners, the 's largest independent buyer of energy to the wholesale energy market.  Click here for a fact sheet on our commercial wholesale gas product, or have a look at the wholesale gas market prices here.

Our Commercial Energy Suppliers