Energy procurement – the devil is in the detail

When a business energy user sets about the process of energy procurement, they will go to the market to get different quotes from suppliers. The suppliers will come back with their offer and a decision is then made based on the average unit rate.

But as well as getting the best average unit rate, it’s important to be mindful that what you actually end up paying depends on the detailed Terms & Conditions (T&Cs) of each supplier.

A lemon of a deal

Comparing apples with apples is difficult when energy offerings have many unique pass-through clauses.

These can range from published distribution to published environmental charges and that’s before you consider the possible future impact of volume penalties.

A fixed-price energy contract is a relative beast. It is interesting to note, that unless you look back on how your energy contract actually performed, you’ll never know if your apple was in fact a bit of a lemon in disguise!

The human touch

Even if you factor in the differences in the terms and conditions into the supplier selection process, there is one fact that often escapes the recognition it deserves.

Some suppliers have historically never invoked their T&Cs even though they had the opportunity to recover additional costs. So how suppliers actually behave is more important than what they could do under their T&Cs.

If you would like us to handle your energy procurement strategy to avoid such pitfalls and free up your valuable time, please get in touch on 01225-867722.

Not only will you have peace of mind in the knowledge that you’re on the right contract, but also that your energy costs are being managed professionally on a day-to-day basis.