Flexible Energy Procurement

Optimise your energy costs by leveraging the current trends of the energy market when selecting a flexible energy contract

When selecting an energy supply contract, take a closer look at the benefits that a flexible supply agreement can bring. A flexible procurement strategy can be perfectly customised to your risk tolerance, as well as provide the certainty and price opportunity you’ve been searching for.

Flexible energy purchasing is most suitable for large businesses consuming more than 10GWh of power per annum, and/or more than 1 million therms of gas.

Why Select a Flexible Energy Contract?

A flexible energy contract allows you to actively manage your position in the market, taking advantage of any downward trends.

When you sign a flexible energy contract you are purchasing your gas or electricity directly from the wholesale commodity market which often leads to lower rates and not being restricted to the same price for the contract duration like a fixed price contract.

A flexible procurement strategy allows you to make multiple buying or selling decisions, all with an effective trading plan. For every transaction, there are several different strategies that can be applied.

Benefits of Flexible Energy Contracts:

  • Multiple buying opportunities
  • Greater transparency
  • The possibility of selling back
  • Take advantage of a falling market
  • Ability to re-forecast volume.

Why Choose PES?

Energy Procurement and selecting the best energy contract for your business isn’t always easy. Unlike fixed energy procurement, flexible energy procurement is more complex and requires a good understanding of the energy market. It can be time-consuming and overwhelming to find the right deal for any business owner or manager. Deciding to buy or sell at the wrong time can lead to inefficiencies and higher energy costs for your business.

At Professional Energy Services (PES), our energy consultants will take the time to understand your goals and roll out a unique energy trading strategy to give you the most optimise energy price in alignment to the amount risk your willing to take.

Our consultants have extensive knowledge of trading strategies and supplier products, giving us the ability to apply the best trading strategy and negotiate the best contract with ideal commercial terms and flexibility on your behalf. We use a range of market intelligence sources, such as commodity markets to long-range weather forecasting, to give you a comprehensive picture of market influences.

What to expect when outsourcing your flexible energy procurement

When partnering with PES we offer full transparency as we provide regular reports summarising our trading performance and cost forecasting. We analyse each potential offer and compare prices against your budget and act according to your preferred level of risk.

All negotiations are handled by your account manager who will manage the relationship and contracts you have with energy suppliers on your behalf.

Once we’ve selected you the best flexible energy supply contract, we focus on several specific key areas with the supplier to better manage your market position. These areas include:

  • Contract features and functionality
  • Client-specific requirements (i.e. invoicing, Automated Meter Reading, Supplier Account Management resource)
  • The supplier’s trading capability
  • Transparency surrounding the price fixing mechanism
  • Financial competitiveness of the supplier’s Account Management fee
  • The quality of customer service.

Maximise contract flexibility whilst keeping your energy costs to a minimum.

With our tailored approach to flexible procurement and risk management, you’ll receive:

  • A choice of flexible supply contracts unique to your business
  • A Risk Management Strategy customised to your procurement plan
  • Visibility of trading platforms for total wholesale market transparency
  • Flexible purchase periods ranging from daily, weekly, monthly, quarterly or seasonal and inclusive of sell-back
  • A view on market behaviour and future movements with access to industry news, technical review and statistical models
  • Trading and budgeting reports of the market on a weekly basis.
  • Price optimisation service for market engagement

In addition to your traditional flexible energy contracts we offer the following flexible procurement strategies:

Flexible (Hedged Wholesale)

This product provides clients with more than one purchasing option per year, opening up the wholesale market to enable you to make multiple purchases throughout your supply contract. You’ll also have the ability to manage your wholesale cost on a regular basis. This product proves popular in the spend categories of £3m and above annually, but is also available for spends all the way down to £250K.

This product has three main facets of low risk, medium risk, and high risk. These take three separate hedging ratios and apply this to a hedging policy to allow multiple purchases of electricity and sell backs. The frequency of these transactions will be determined according to your level of risk.

To make sure we operate within the parameters of a market, we need to exclude ourselves from achieving market extremes. We exclude ourselves from these extremes by participating in the market regularly, and ensuring our commitment is balanced across the market curve (having risk spread in both short term and long-term markets).

Flexible Purchasing

In this model, we examine your energy consumption pattern over the course of a year and break it down into tradable pieces, allowing you to buy your energy flexibly and simply.

Below is an example of your previous contract period. The grey bars representing different energy trades that range from the month purchased to quarters and futures to demonstrate the mechanics of such purchasing.

Discover the best flexible energy contract and trading strategy for your business by requesting a consultation with our energy experts.

Request a Consultation


					
					

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