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 growing competition to supply you with energy.
Ellserve can assist with every step of your plan:
- Identify your objectives - perhaps to minimise risk (hence no exposure to the spot price), or to minimise costs, or to minimise “rate shocks” between contracts
- Identify your strategy - the approach you’re going to use to achieve your objectives
- Timing - go to market to renew contracts well in advance, avoiding the possibility of getting caught having to renew contracts during an ‘energy crisis’
- Review the market conditions so that you have an idea of what is possible, and what is not
- Summarise your site and energy consumption data for intending suppliers.
- Going to market - your request for proposal for supply should go to the widest possible range of suppliers in a form which makes it easy for them to understand, analyse and respond to.
- Evaluating offers - having good data will really help you here, allowing you to get 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 - look for options, fine details and hidden “fish hooks”. Carefully evaluate the offer and ask for a copy of the supply contract you will be asked to sign, this should be reviewed by someone with experience with energy supply contracts before you sign.
- Switching suppliers - If you are changing suppliers then you will need to check carefully that all sites are transferred to the new supplier and that all the new terms and conditions are applied as intended and as expected.
- Monitor the performance of the new contract regularly throughout its life. Mistakes do occur and conditions do change.
Ellserve - 10 easy steps to reduce your energy costs.
Simply better business.