What is energy procurement?
Energy procurement is the strategy you go through to source the best energy contracts for your company. Some companies will have a procurement manager for this task, however, it can be a daunting task to do as a small business manager with no financial help.
With energy procurement you are not just looking at the prices of the contract but also different types of suppliers, customer services and forecasting prices for the future.
Doing energy procurement correctly will ensure that your business gets the right energy deal. If you don't have a specific employee for energy procurement, it might be best to get help with this from an energy consultant or broker to help with this.
Why does your business need an energy procurement strategy?
Benefits of energy procurement
Having an extensive procurement strategy for your gas and electricity contracts can improve your business in many ways.
More protection for your business
By looking more carefully into energy contracts or having someone do this for you will lower the risk of getting caught by hidden charges from suppliers. Reputable brokers or procurement managers will ensure that the contract you sign is not going to end up costing the business more in the long run or add charges.
Better suppliers
Business energy suppliers can sometimes mistreat organisations. With an energy procurement strategy, all suppliers will be looked into from their financial position to how much they charge your business. This way you can ensure your supplier is going to treat you well and be reliable throughout the duration of your contract.
Fewer costs
With an energy procurement strategy, you're less likely to get caught in high-cost contracts. By looking more carefully at contracts you will also ensure that you are not hit by hidden charges that can add thousands to a business's energy costs.
Stay on top of renewals
By having someone procure energy for you is much easier to keep on top of renewals. If you work with Resolve Energy, you will have a personal account manager. Your account manager will handle your renewals and notify you when it is time to sign your next contract.
Business savings go into your bottom line
By getting a better fixed contract you can put the money that you would normally spend on energy back into your bottom line, further improving your business.
What kind of businesses need energy procurement?
All businesses should consider procurement to help with their energy bills, however, some businesses should ensure this is part of their renewal process. Some of the largest businesses that should have energy procurement as part of their strategy include:
Manufacturers
Manufacturing businesses use a lot of energy because of their high energy usage operations. Due to this, they could use a procurement plan to ensure that they are secured at the lowest rates possible therefore they will then pay less for the overall energy expenditure.
warehouses
Big businesses with warehouses often have a meter that measures energy usage every half hour, resulting in high energy consumption. The price of the gas and electricity contacts for warehouses could have a huge impact on the business's budget. An energy procurement plan could help these businesses with energy management, and energy pricing and secure long-term low prices.
Schools
Schools now have the opportunity to save on energy bills by comparing and finding the best contract in the same way any other non-domestic customer would. As schools are such large businesses that are very energy intensive a procurement plan would be best. This gives the organisation the ability to efficiently manage contracts and renewals.
Tips for putting together your energy procurement strategy
Make sure you understand your business's energy needs. Knowing how much energy your business uses and forecasting your energy needs is crucial when it comes to doing your energy procurement strategy.
Set clear budgets and be realistic with how much your business can spend. Make sure when you are signing your contract that your business can afford that price for the term you choose.
You should also consider all options when it comes to your energy. With a business energy deal, there is a variety of different contracts and tariffs your business can choose from. By assessing the current market and your business needs you will be able to assess what contract suits you best.
Negotiate with various suppliers. To ensure you get the rates you need you have to negotiate your contract carefully. At Resolve we can do this for you.
Monitor your usage and spending. Regularly monitoring your usage and spending will allow you to meet your objectives. Whether your energy goals are to save money or to reduce your energy usage it is vital to keep an eye on how much energy your business uses before starting your procurement strategy.
How can Resolve Help with energy procurement?
As an energy broker, Resolve Energy can help secure much better prices and take care of the procurement process, so you don't have to. Whilst your business must have an idea of what is going on with your energy bills, doing the whole process alone can be timely and costly if you get something wrong.
It is much more beneficial to have the help of a broker or energy consultant, like ourselves to guide you through the process and do most of the leg work for you. Whether you need help with your business gas or electricity we can take care of it ensuring you peace of mind when you come to fix energy bills. If you allow us to take care of your energy procurement we will:
- Save you money and time - our team has expert knowledge in the energy market and evaluates the current and future market rates for accurate energy procurement contracts and gives you some budget certainty.
- Provide you with expert advice and support - We will ensure you are looked after throughout your energy contract.
- We can also help with any issues we may have as well as risk management for future contracts.
If you're looking to save money on your energy bills then why not get in touch today? The relationships Resolve Energy has developed with over 24 of the UK’s biggest business energy suppliers allows our energy experts to source the best business energy rates available for your company right when you need them. Request a free quote today and start saving money on your energy.
