Business Energy Procurement
Secure the best energy deals for your business with BusinessEnergy.com today! We are experts at all things business energy-related, and we want to help you get better prices and smoother switchovers, and assist in reaching your net-zero goals.
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What Is Business Energy Procurement?
Business energy procurement secures the best gas and electricity deals for your business needs. We want to assess your current usage, any special requirements like green energy, and how much you are paying, then come to a solution that benefits you the most.
Think of business energy procurement as the act of shopping around for a better deal, to see how you can improve your energy usage and spending.
How To Find The Best Business Energy Deals
Finding the best energy deals for your business can be different for everyone.
Firstly, consider how much energy you currently consume and how much you pay for it. If you notice your usage peaks around certain hours, there could be a better tariff to suit those hours, so you can pay less, despite using the most.
Here are some great tips from our energy experts at BusinessEnergy.com:
- Monitor Trends: We recommend paying attention to the Ofgem Energy Price Cap, as gas and electricity prices can fluctuate throughout the year. It could be beneficial to secure a longer-term contract while rates are low or agree to a flexible contract so you can adjust your terms based on newly released standing charges and daily rates.
- Green Energy: Based on your business' long and short-term net-zero goals, choosing solar, wind and other clean sources is good for the environment and can save money. There are also government grants that can assist with facilitating greener energy consumption for your business.
- Smart And Advanced Metering: Upgrading to a smart or advanced meter can help to identify your peak consumption hours and provide exact usage for billing purposes. Typically, standard meters generate billing based on estimations, which isn't ideal, particularly if you require a lot of energy.
- Learn To Negotiate: Understanding the market plays a key part in negotiation, if you can notice trends, and negotiate for better contract terms, you could save your business a lot of money. Here at BusinessEnergy.com, we can negotiate on your behalf directly with our panel of trusted suppliers.
Understanding what your business needs, how much you want to realistically pay, and negotiation tactics are key driving factors in optimal business energy procurement.
Types Of Business Energy Procurement
Fixed-Energy Procurement
A fixed-energy contract is when there is a set price, over a certain period, usually up to 5 years. This is ideal if you want steady, simple payments with no surprises.
Pros
- Great for budgeting as you know exactly what you'll be paying each month
- Even if the markets go up, you will still be paying the same rate you signed up for
- Most energy suppliers take on long-term risks
Cons
- Energy suppliers could increase costs to resolve risks
- If pricing drops, you will still be paying the same rate you signed up for, even if it is higher.
Passthrough Energy Procurement
Sign up to fixed wholesale prices, while still having flexibility in other costs. This is ideal if you want to take advantage of any potential savings.
Pros
- If prices drop, you will pay less
- Can be lower pricing than fixed energy
- Great for future pricing drops
- Ideal for monitoring usage patterns
Cons
- Not ideal if you are on a tight budget as it comes with a level of uncertainty
- The other costs, aside from the wholesale, could fluctuate regularly
- Comes with a level of complexity and proactiveness
Flexible Procurement
Flexible energy procurement can help you adjust your monthly spending as the market changes. At BusinessEnergy.com, we are always at hand to navigate the changing energy landscape and provide you with insights on how to control spending.
Pros
- Take advantage of any price drops
- Complete control over your business energy purchasing
- Great if you have adept knowledge of the energy market
Cons
- You will need to understand the energy market and trends
- Only beneficial if you require large volume consumption for wholesale access
- Could be a big risk if not managed efficiently
Public Procurement
Public procurement is when the government buys goods and services from the private sector. It can also be known as Government Procurement. BusinessEnergy.com can help to manage compliance, tenders, and sustainable energy initiatives.
Pros
- Can help the public sector create a more innovative, resource and energy-efficient, and socially inclusive economy.
- Can lead to substantial savings, enhanced productivity and improved services.
- Can reduce energy demand by managing energy consumption and implementing energy efficiency practices
Cons
- Product shortages
- Market risks, cost and quality risks