Selecting the best energy contract for your business isn’t easy. Utilities and energy procurement can be frustrating if it takes up a significant amount of your time. Searching for the best deal, and understanding the small print within energy contracts can be confusing.
The UK energy market is complex with multiple electricity and gas suppliers to choose from. They all offer a range of different business energy contract types, extras, perks and green options. Due to the increasingly volatile market and the risks associated with selecting the wrong contract for your business, energy procurement is an area not to overlook.
At Professional Energy Services we help you manage the purchase of business energy and utility contracts. Whether your goal is price optimisation or flexible purchasing, we will find the right energy contract for you. We work together to understand your requirements, business infrastructure, attitude to risk, energy consumption, and predicted usage. We negotiate with lead suppliers on your behalf as we run a full national tender across all vetted suppliers, creating a competitive environment that ensures you maximise the value you get out of the marketplace and right energy contract for your business. This may range from fully fixed products to flexibly bought energy.
By forming a partnership with an energy procurement consultant you will receive:
Energy brokers that handle the timing of supply contract extensions and negotiate contract terms to ensure you get the best deal.
Recommendations of which contract options to take based on your energy portfolio and objectives (including sustainability goals)
An optimised price through our trading team once your supply contract is agreed
The 4 step approach to energy procurement
1 – Understanding your goals
Listen to your goals and understand your supply contract needs
2 – The Plan
Set out a purchasing plan that is optimized to your requirements
3 – Trading
Our energy brokers negotiate with supplier and run a tender to secure your supply contract.
4 – Reporting
keep up to date on market movements, traded and position and benefits achieved.
Energy Procurement FAQ
Energy procurement is the strategic process of sourcing your required energy by purchasing it from a third party energy supplier or local distribution company (LDC).
The obvious aim is that every business requires energy resources such as natural gas and electricity to power their operations. All businesses will aim to obtain the most economically practical energy deals for their organisation, that takes into account their consumption, predicted usage and the potential sustainability and renewables goals.
You can either procure energy in-house or you can use an energy broker to look for an energy supplier on your behalf. When procuring energy, you should look for an energy supplier that is cost effective and competitive on price but also a contract that meets your needs specifically. Depending on your level of risk you may prefer fixed or flexible rates and many businesses have special requirements due to their energy consumption depending on the industry.
If you decide to do your procurement in-house you will gain savings due to avoiding the broker or consultancy fees. The disadvantage to in-house procurement is that it requires a lot of research to find the best deal and can be very time consuming, On top of this you may make a mistake without the help of an expert and this could result being stuck in an uncompetitive fixed-term contract that costs your business more money than it should, Also you are unlikely to be offered the best tariffs if you work with energy suppliers directly, whereas a broker has access to more competitive rates.
The benefits of outsourcing your energy procurement to an energy specialist include:
- They will work on your behalf to review all the available energy supply contracts and select the tariff that best suit your businesses’ needs, saving you time and stress as your no longer searching through different tariffs and reviewing energy contract small print
- Reduced risk of your business being placed in an inefficient contract due to a consultants industry experience
- Access to cheaper tariffs that business owners would not see if working directly with suppliers.
- Transparent advice tailored to your business objectives which include lower risk of unforeseen charges, hidden fees, and costs and more informed load forecasting
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