The Process for finding the right contract for your business
If you’re responsible for your business’ energy management, you’ll already know the importance of planning. Choosing a procurement plan is one of the most significant decisions you can make as you seek to reduce your energy costs. Choosing the right plan is not always an easy decision but by doing some simple groundwork, you can select the most effective strategy that best meets your business’ needs.
Before you decide to make any changes, you need to gain an understanding of your current portfolio – essentially building a picture of your sites, what energy your business uses, when you use it and what it costs you; what products and services you currently take, what suppliers you work with and when you’re due to renew your agreements.
As part of our service, we pull all of this data together for you, collating all your usage, plotting trends that we identify, highlighting ways you could save through a variety of techniques, and drafting a plan that can kick start determining what your future procurement strategy should be.
1. BUILD A PICTURE OF ‘NOW’
First, take a look at your energy bills. How much electricity and gas is your business using? Can you see the peaks or troughs? What rates are you paying at these times? This will show you if there are any obvious ways to save. When we undertake a Review we assess if any discounts can be applied for being more energy efficient or by choosing to pay a certain way, as well as seeing if they could benefit from re-balancing your usage.
2. YOUR PLANS
Next, ask yourself, what are your business objectives both short term and longer term? Do you need scope to expand? Do you need to know for certain what your out goings are going to be? What level of energy price volatility is your business willing to take on?
Business planning can help shape how well your business could cope with large fluctuations in energy prices. When we undertake a review for our clients we explain all the potential risks associated with each type of contract. If in the following year the wholesale market increases by 46% (as happened in early 2011), is your business sufficiently protection.
3. REVIEW THE MARKET
Lastly, explore the options available to you. There are lots of different types of products available – fixed, flex, capped, baskets – depending on what is important to your business.
Understanding the features and benefits of each of these is really important so you can make an informed choice. Some products require a greater understanding of the markets so utilising the expertise of consultants like Advantage Utilities, can enable you to save even more.
Our Procurement Service focuses on impartiality and suitability with our key priority of helping you save..