Energy Procurement

Our years of industry experience and in-house energy procurement expertise enable us to get the best energy deal for your business.

In recent years, volatile, complex and fast-paced energy markets combined with spiralling costs have made procuring energy a far from straightforward affair. Minimising energy costs - and taking the hassle away from you, the customer - is at the heart of what we do.

At Energy Management, we use our knowledge, market intelligence and business energy procurement analysis expertise to assess both short and long-term trends in the energy market and to produce a tailor-made solution.

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Power Purchase Agreements (PPA's)

Energy Management can help you arrange the best PPA’s whether you are a dedicated energy generator or a business with onsite generation. If you wish to fix your energy price or choose a flexible contract, Energy Management can help you achieve your business targets. Signing a PPA is a great way to get ahead of your competitors and plan for risks while leveraging value for your organisation.

Read more from Zenergi on how we can help your business with Power Purchase Agreements.

Choice Energy Framework (CEF)

Energy Management has launched its unique, six-point Choice Energy Framework (CEF), to help reduce Public Sector energy expenditure. Involving up to six energy suppliers, the framework allows public sector bodies to access the best energy solutions. The six suppliers have been shortlisted on the basis of tariff competitiveness, billing accuracy, max/min volume threshold restrictions and terms and conditions.

Read more on how we work in the public sector with the Choice Energy Framework.

Green Energy Framework (GEF)

Energy Management's' Green Energy Framework helps clients with the following:-
Tariff competitiveness – there will be none of the premium prices associated with renewable energy procurement in the green energy offers put forward by suppliers.
Increase billing accuracy – 1 in 5 invoices billed incorrectly, our suppliers have been chosen with billing accuracy in mind.
Green certification – REGO – all supplied contracts issued are be accompanied by a renewable Energy Guarantee of origin certificate.

Read more on how we help businesses work towards Carbon Zero with the Green Energy Framework.

Market Intelligence Reports

Decision making based on hard data and excellent communication between ourselves and the customer.

As energy managers it’s our business to know the inside line on markets, trends and technologies – identifying opportunities to improve performance above and beyond your expectations.

Having invested in technology and software that provides us with information, live and direct, from UK and European energy trading platforms, we are able to react quickly when the need arises.

What is the best Energy Procurement Strategy for 2023?

The best strategy will be determined by the needs of your unique business. Energy prices fell dramatically during the early stages of lockdown to reflect the lack of demand, but following the easing of restrictions, the resulting step up in business activity and the war in Ukraine prices have soared to record levels.

Sector-specific energy purchasing

These are unchartered times, and without a crystal ball, managing risk has never been more important. Hence, having the correct strategy in place and being able to respond quickly to opportunities as they arise is crucial.

What is the best Energy Procurement Strategy to manage risk?

Simply put, it’s the strategy that’s most suited to the business. But first, you need to understand the role of risk in your business. Some businesses do not have the option of adopting higher risk for potentially higher financial returns as budget stability might be more important to them.

Your business may have long-term fixed customer sales contracts which do not allow for passing on increases in energy costs to your customers. In order to protect profit margins, having fixed price energy contracts is preferential to having the opportunity to take advantage of falls in the energy markets. This is because the risks of energy price increases would ultimately be more damaging to the financial performance of the business.

Energy-intensive business strategies

For energy-intensive businesses, in order to compete on price, it’s important that you’re buying energy at the current market rate, so a flexible contract that tracks the market could be advantageous.

As a general comment, a fixed price contract which is renewed when the energy markets are low has historically added value, particularly as they often avoid increases in non-commodity costs.

What is the difference between a fixed and flexible energy procurement strategy?

Most people view flexible contracts as riskier than fixed ones but, in reality, they can be used as a hedging tool to smooth out the volatility of market movements.

Flex Energy Contract

A flex contract enables you to fix any amount of energy for any period of time. For example, you could fix energy prices for half your anticipated consumption for the duration of the contract, and let market prices dictate the cost of the other half once you have interpreted market dynamics through the use of helpful energy management analytical tools such as EM-Powered. The price you then pay is the average between the two actions.

Whether a fixed, midi-flex or full flexible strategy is adopted, it is important to have a dynamic approach. By this, we mean fixing contracts when market movements present opportunities and not when you come to the end of a fixed period contract in the blind hope that the markets will be favourable.