Following an Ofcom review, changes to some number ranges beginning 08 will be implemented on August 1st 2009.

Ranges affected

There are many numbers beginning with 08, and the ranges which will be affected from this date are:

• 0870
• 0871
• 0872
• 0873

(Please note that other 08 number ranges may become the focus of further reviews in the future)

0870 Numbers

These numbers are used to provide a national presence for companies trading across the UK, regardless of their actual geographic location. Over the years, they have become revenue-generating numbers for those receiving calls. The intention of Ofcom’s review was to make these numbers revenue neutral.

What the changes mean to callers

At present, callers are charged at around the BT standard rate for national calls. This cost will vary across different networks, but will typically be around 8 pence per minute (including VAT). This clearly bears little relation to the national rate charged by most service providers, of around 1 to 2 pence per minute.

From August 1st, service providers will have to charge callers to 0870 numbers the same rate as they charge for geographic national calls.

What the changes mean to recipients

The recipients of calls made to 0870 numbers have been receiving, and up until August 1st will continue to receive, a rebate comprising some of the difference in charges that have been applied hitherto. Because callers will no longer be paying an inflated charge, this means that not only will any rebates disappear, but recipients will actually have to pay to receive these calls. The amount charged will vary, depending on individual circumstances, but may be expected to be in the range of 2.5 to 3.5 pence per minute.

Options available to recipients

Businesses that do not wish to incur such high charges to receive calls made to their numbers have the following options available to them:

1. Alternative 08 ranges can be utilised which can still generate rebates
2. A new number range starting 03 has been introduced, and these numbers are revenue neutral. A brief outline of this number range can be found below
3. Geographic numbers can often deliver the same functionality as that provided by 0870 numbers

03 Numbers

Ofcom have also introduced the 03 number range into the market. The purpose of this range is to provide clarity to consumers. Calls to all 03 numbers will be charged at the standard national rate to callers, and recipients will not receive any rebate. Instead they will pay around 1.7 pence per minute plus VAT to receive calls to these numbers.

Businesses using 0870 numbers should in many instances be able to replace them with the equivalent 03 number (for example, 0870 12345678 can be replaced by 0370 12345678).

0871, 0872, 0873 Numbers

Ofcom have ruled that these numbers, which are charged at varying rates from 6 to 10 pence per minute, should be treated as premium rate numbers. This means that these numbers will be regulated by PhonepayPlus from August 1st.

PhonepayPlus regulates all premium rate numbers, such as those beginning 09. The numbers themselves are considered to provide access to “information services” and generate rebates for those receiving calls.

What the changes mean to callers

Callers to 087 numbers will not see any changes in the charges they incur when calling these numbers.

What the changes mean to recipients

Businesses using 0871, 0872 and 0873 numbers will have to comply with PhonepayPlus regulations (see below) from August 1st. Revenues and rebates will continue as they are currently applied.

PhonepayPlus regulations

Wherever an 087 number appears, it should be accompanied by pricing information. This includes everything from websites and print promotions, to listings and van liveries. Pricing information must be clear, close to the telephone number and prominent. In the short term, PhonepayPlus will accept a spoken message, explaining the tariff, at the beginning of every call as an alternative, although they expect everyone to change their collateral as soon as is practicable.

“So far Auditel have found us substantial savings totalling £47,800. These extra funds will make a real difference to the people we help. Having worked with Chris for three years now I have every confidence in the Auditel service and look forward to even more savings in the future.”

Derek Lowe, Financial Controller BEN

Download BEN case study in full

“At Brunelcare we are constantly striving to develop the services,
care and facilities we offer to older people. As a charitable housing
association, we always look for effi ciency gains so we have a
heightened awareness that we must spend our money wisely. By
reducing our expenditure on electricity and gas Auditel has saved
Brunelcare over £100,000. These savings translate into valuable
capital which has, in turn, been re-used within our organisation.”
– George Cooke, Finance Director

Download a copy of the Brunelcare case study in full.

A really complex area potentially so I’m going to cover off the general principles:

Firstly let’s make the assumption that you are generally better off entering some form of fixed term contract. This would be a big assumption in other markets but in the world of energy for most businesses being on a floating tariff means you are at the whim of the marketplace and usually you will be on less than preferential terms. Exceptions to this may be when you are about to vacate or start up in  new premises or if you had very good reason to think that the market price was going to drop dramatically in the very near future (you know more than me in this case!)

A fixed term contract can take various forms but in the main we are talking about fixing prices for a 1,2 or 3 year time horizon. Longer term contracts can be offered occasionally but it would be a gamble taking one given the volatility of energy pricing and you can opt for contracts of less than 1 year (this may be useful if you had multi-sites and you wanted to align all sites on the same contractual time frame).

The key to good buying is doing everything in plenty of time:

- Terminate your current contract in the correct manner and in the correct time window (this varies massively from supplier to supplier and you might need the help of your energy consultant here)

- Tender the business to as many alternative suppliers as possible with as much information as possible – everything from 12 months of half-hour data, voltage type, available capacity, supply numbers and these days full disclosure on your company details for credit checking

-Create comprehensive spreadsheets to take account of every different aspect of cost. Suppliers will deliberately split their costs into often unfathomable categories (Settlement charges, Duos, Data Aggregation) and worse than that will omit charges that they simply “pass through”. You need to compare apples with apples

- Ensure all bills with your current supplier are paid in a timely fashion and check on a regular basis that your current supplier hasn’t objected to transfer of supply

- Check your new bills with a fine-toothed comb. Utility suppliers have a justified reputation for making the most mistakes in billing and you must check you are paying what you thought you were contracted to.

You could also look to buy on the wholesale market if you’re buying very large chunks of energy – another form of fixe term contract where you form part of a portfolio of customers and where prices can be locked and un-locked over time to help smooth the risk curve. This is complicated and so definitely contact me if you want to know more about this.

Virtually the entire scientific community is now convinced that Climate Change is happening and that it’s a man-made phenomenon.
Over the past 140 years the earth’s surface temperature (land & sea) has risen by 0.6 degrees celsius on average.
The greatest increases occurred in the second half of last century with the 1990s being the hottest decade since records began.

- A company with a turnover of £1million and a profit of £100k could typically be spending £25k on energy
- Just a 20% reduction in energy spend would be the equivalent of a 5% profit boost or an extra £50k of additional turnover
- For every 1 degree celsius that you overheat your premises you add 8% to your heating costs

- Employ an energy manager or at least create energy “champions (check meters/bills, monitor trends, raise awareness)
- Communicate targets and energy “wins” internally” (posters, events, reward schemes)
- Change thermostats to lowest comfortable temperature (21 degrees celsius is a good target)
- Check/elimintae cold draughts from doors/windows
- Ensure that doors/windows are not left routinely open whilst air con is on
- Move away from traditional tungsten light bulbs (low energy bulbs use 75% less energy and last 8 times longer)
- Move to modern small diameter fluorescent tubing ( use 8% less energy for same price)
- Make daytime lighting a positive decision rather than a default (concentrate on workspace e.g. desk specific)
- Switch off computers overnight
- Switch off monitors during lunch breaks
- Switch off pumps, fans, compressors when not needed
- Check for compressed air leaks (you can hear them!)
- Regularly maintain plant/equipment
- Outside the premises check your vehicle fleet (remove roof racks, check tyre pressure, optimise pay loads – can save up to 15%)