Dynamic Energy Procurement. Flexible or fixed we have it all

Having been active in the procurement field for many years, we place importance and value on not just understanding market fundamentals but also an emphasis on understanding complex contract structure.

Flexible energy purchasing

Our flexible purchasing option means you can choose to take advantage of market fluctuations in wholesale pricing. With our service, you can have access to a market once reserved only for the largest organisations removing the elitist element. The unique appeal of Control Energy Costs DEP approach is its “flexibility and adaptability”.

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Flexible energy contracts transcript

Hi, I’m Phil Ager, Managing Director of Control Energy Costs. Today I’m going to talk to you about flexible energy contracts.

I’ll try to keep the explanation as simple as possible.

When opting for a more traditional fixed price energy contract, you are effectively trying to second guess a day when the market looks favourable to secure your requirements for a fixed period.

This can leave you exposed to short term market conditions that will impact on the price you are offered, especially if making a decision is left until the last minute.

Energy is traded as a commodity and futures markets tend to be less affected by current market issues and it follows that the further out you are prepared to look, the greater the opportunity to minimise risk and exposure to volatility.

So, what is a flexible energy contract?

In a nutshell, it’s a purchasing framework agreement agreed with a supplier that allows you to buy energy up to 5 years in advance and build a price made up of multiple purchasing decisions over time rather than making that all important decision on a single day.

Having a purchasing framework in place gives the ability to move quickly when the markets are favourable and spread risk when the markets are high.

Using historical consumption data, we will work with an energy supplier to agree your unique energy shape and tradeable blocks of energy that can be bought over time. Any consumption that falls outside these tradeable blocks – either over or under consumption - will be covered by either a unique shape fee which will vary depending on your business type and the days/hours you operate or a cash out reconciliation.

Your monthly unit rate comes from a weighted average of the individual energy blocks that have been purchased for the month in question, plus the agreed shape fee or reconciliation.

Working in consultation with our procurement specialists, our dynamic energy procurement service is a great way to start looking at flexible energy contracts – wholesale market access as we call it. Our risk managers will work with you to create a strategy and help you capitalise on market fluctuations.

Why not get in touch with us via our website, email or phone.

How flexible energy procurement can help in times of high energy prices

In the current times of high energy prices, our flexible energy purchasing approach may be the most cost-effective should you find your fixed energy contract renewal proposal significantly higher than previously.

Our purchasing team will liaise with you to gain a thorough understanding of your desired strategy, budget, value at risk and future objectives. Our consultation process helps us determine not just what your business needs now but what it may need in the future across both fixed and flexible purchasing options. Control Energy Costs will only tender for contract structures that best fit your requirements.

Flexible energy procurement resources

eBook guide to flexible energy contracts

Flexible energy procurement FAQs

Fixed price purchasing

For organisations that focus on knowing what they will be paying in advance, our fixed price purchasing options will provide the security of known costs for an agreed period. Fixed price contracts are well served by our procurement team, focussing on suppliers that provide a fully transparent product, combined with secure billing processes that ensure you can get on with what you do best … running your business.

Securing best prices

Whichever route you choose, our dedicated market analysts will work on your behalf to secure the best prices. As a business, Control Energy Costs took the decision several years ago to dispel the “smoke and mirrors” approach to energy pricing, preferring instead to provide transparent costing. We will assess supplier suitability and work to provide accurate and precise invoicing at the point of delivery.

eBook guide to flexible energy contracts

Download our flexible energy eBook to find out how you can take advantage of market volatility and minimise energy costs

Download the flexible energy procurement guide

CHECK OUT OUR CLIENT CASE STUDIES