Cutting down on cost through smart energy procurement

Posted in Energy Procurement

Businesses of any size can keep their energy spend in check simply by using less energy.

Identifying energy efficiency opportunities and then implementing measures to address them will reduce the amount of gas and electricity used.

Encouraging an energy efficiency culture at your company is one way of doing this, so that staff are conscious of the need to turn off computers and equipment when idle and lower consumption that way.

Physical measures such as the installation of LED lighting or more efficient heating or cooling system are other steps that can be taken.

Not one solution will fit all, however. Some businesses may operate on a single site, others across multiple sites, whilst working hours may differ.

Businesses that operate largely during daylight hours and have a lot of natural light coming into the building, for example, will spend less on lighting than one that largely operates at night.

Proactive smart energy procurement

But one thing that all businesses should have in common is a desire to get the best business energy deal possible.

In the early days of the energy management industry, businesses tended to wait until they had a month left on their present deal before contacting energy suppliers and then renewing.

But energy procurement has moved on and it is smart business nowadays to be much more proactive in the process.

Whilst no business owner or energy manager in charge of the energy procurement process can be expected to plot the future course of energy prices – an impossible task given there are so many factors affecting prices – they can arm themselves with enough market information to make as informed a choice as possible.

Timing is key

Knowing when to put pen to paper and whether to fix the energy price or remain flexible are key to smart energy procurement and a successful outcome.

At times such as these, where there is a lot of upward volatility, it is more important than ever to make the right decision.

“It is all about knowing when to procure, what type of procurement and then getting on and doing it,” said Energy Management consultant Malcolm Barrington.

“We have signed up people a year-and-a-half ahead of when their current energy deal expires because the markets are in such a position at that time it is of benefit to do so.”

If you would like to draw on our vast experience, to help you in the energy procurement process, please get in touch on 01225-867722.

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