Compare energy procurement prices from Energy Management
What is 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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- Search once for all the major energy suppliers
- Extended fixed pricing for up to 60 months
- No sign up, no commitment required
- Potentially saving your business £1,000s
- Business Energy Procurement Specialists
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What types of Business Energy Procurement Contracts are available?
We monitor your energy contract so that we can be proactive when sourcing your new deal. In particular, our account managers can explore the range of options available to you. From a fixed-price, longer-term arrangement, to a more flexible approach, where advantages can be derived from fluctuations in energy pricing.
A fully flexible contract that can offer advantages derived from fluctuations in energy pricing.
MidiFlex contracts provide some flexibility without the risk involved with a FullFlex arrangement.
A longer-term arrangement that allows for greater security, planning and budgeting.
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 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.
For the longer view, we receive information from a wide array of industry and analysis subscription services, such as ARGUS and Marex. The data is then evaluated by our expert energy consultancy team.
Each month, you will receive a bespoke monthly Wholesale Energy Markets report via email, giving you a measured view of the global energy situation, legislation and seasonality, so that you can make the most informed decisions possible to safeguard your energy supplies and your bottom line.
June 2022 Overview - June has seen a dramatic rise in prices, which has followed on from a period of settled market prices. We have seen a 35% gain in gas prices and 22% in Power. What this means is prices are close to all-time highs once more, nearing levels we saw at the start of March. The key drivers have fundamentally changed the supply picture.
What is an Energy Procurement Strategy?
The best energy procurement strategies optimally match your business needs with the many choices that are available when it comes to buying energy. Energy is often one of the biggest overheads for a business, so it is crucial to adopt the right approach in how you go about purchasing your gas and electricity.
What is the best Energy Procurement Strategy for 2022?
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 and the resulting step up in business activity, they are now climbing out of what appears to be a market trough.
Even so, energy suppliers are being selective about who they deal with and are avoiding perceived high-risk industries, such as hospitality, catering and travel, that have all come under intense pressure since the COVID-19 pandemic started mid-March 2020.
Sector-specific energy purchasing
Businesses within those sectors on a fixed energy deal in a market where prices are rising will feel they are in a relatively good position from an energy procurement perspective as they’ll be protected against the prospect of being hit by increased risk premiums.
However, 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.
Energy Procurement latest - Energy Market Report June 2022
Our internal energy procurement team looks further into the key drivers of recent market volatility, and for any signs of how the mid-term energy market may look.
The situation and reliability of gas from Russia into Europe is deteriorating with each month, whether that's through Rouble payment disputes or simply gas flows reducing as we have seen with the Yamal and Nord Stream 1 pipelines. This trend is not one giving the markets optimism, and remains a key driver for energy markets.
The UK economy is showing signs of entering recession by the end of 2022. Slowing and declining economies is often associated in a decline in energy consumption and this in turn could signal bearish movements on prices.