Procurement
There are only two ways to reduce energy costs: reduce what you pay for your energy, or reduce the energy you consume.
Energy procurement can be a complex process, which Ellserve makes easy. The key to reducing what you pay for energy is to be a smarter player in the competitive energy markets. Despite rising energy costs, there is increasing competition to supply you with energy.
You can reduce your energy costs in 10 easy steps:
- Identify your objectives - minimise risk (no exposure to the spot price), costs, or “rate shocks” between contracts;
- Identify your strategy;
- Timing - go to market to renew contracts well in advance, avoiding contract renewal during an ‘energy crisis’;
- Review the market conditions;
- Summarise your site and energy consumption data for potential suppliers;
- Going to market - distribute your request for proposal (RFP) for supply to the widest possible range of suppliers in a form which makes it easy for them to understand, analyse and respond to;
- Evaluating offers - good data will give you an accurate picture of how each supplier’s offer will impact your total energy costs over the life of the new supply contract;
- Sorting the contract - carefully evaluate the offer and ask for a copy of the supply contract. This should be reviewed by someone with experience with energy supply contracts before you sign;
- Switching suppliers - carefully check that all your sites have been transferred to a new supplier (as applicable) and that all the new terms and conditions haev been applied;
- Monitor the performance of the new contract regularly. Mistakes do occur and conditions do change.
Simply better business.