Managing a property portfolio in London involves more than securing prime locations and tenants — it requires careful oversight of operational costs. One significant factor influencing the profitability of commercial properties is the cost and structure of gas and electricity supply.
Understanding the range of commercial gas and electricity plans available can empower landlords, investors, and developers to make informed decisions that maximise returns and enhance tenant satisfaction.
At Fraser Bond, we assist property owners in navigating these choices strategically, ensuring that every element of their investment is optimised for success.
Energy expenses often represent a substantial portion of a property's operational budget. Selecting the wrong plan can lead to excessive costs, unpredictable billing, and tenant dissatisfaction — all of which can erode yields and impact long-term investment performance.
Key benefits of choosing the right commercial energy plan include:
Enhanced profitability through lower operational costs.
Greater budget predictability with fixed-term agreements.
Stronger tenant appeal via reliable, sustainable energy provision.
Improved ESG credentials by selecting renewable energy sources.
In a competitive market like London, operational efficiency is a distinct competitive advantage.
1. Fixed-Rate Plans
These plans lock in a set price per unit of energy over an agreed period, typically one to three years. Ideal for landlords seeking budget certainty and protection against market volatility.
2. Variable-Rate Plans
Prices fluctuate based on market conditions. Suitable for property owners who anticipate falling energy prices or require flexibility.
3. Green Energy Plans
These plans source a significant portion or all of the energy from renewable sources. Attractive for landlords focused on environmental sustainability and meeting the growing demand for eco-friendly properties.
4. Bundled Utility Plans
Some suppliers offer combined gas and electricity packages at discounted rates. Bundled plans can simplify property management and offer overall savings across multi-unit portfolios.
5. Multi-Site Contracts
For landlords managing multiple properties, multi-site contracts streamline billing and administration by covering several locations under one agreement, often with preferential rates.
Assess Energy Usage
Accurate energy profiling based on historical data or anticipated use (for new developments) is essential in selecting the most cost-effective plan.
Consider Contract Length
Match contract lengths with investment horizons or tenancy agreements to maintain operational flexibility.
Compare Suppliers and Plans
Use independent business energy comparison services to benchmark offers across the market.
Prioritise Customer Service
Reliable supplier support is crucial, particularly when managing larger residential or commercial complexes.
Factor in Green Credentials
Increasingly, tenants and buyers value sustainability. Opting for greener energy plans can enhance market appeal and future-proof your investment.
At Fraser Bond, we recognise that energy management plays a critical role in optimising property performance. We support London landlords, commercial property owners, and developers by:
Advising on strategic energy procurement as part of property acquisitions and management.
Connecting clients with trusted business energy consultants and suppliers.
Assisting portfolio owners with energy cost optimisation strategies across multiple assets.
Our aim is to ensure that every operational decision, including energy contracting, strengthens your investment outcomes.
Selecting the right commercial gas and electricity plan is a strategic decision that impacts profitability, tenant satisfaction, and long-term asset value. Property owners who proactively manage energy contracts stand to gain significant operational advantages.
Partner with Fraser Bond for expert guidance on navigating London’s dynamic property market — ensuring that your real estate investments deliver maximum returns with optimised operational efficiency.
