July 19, 2024

Not sure what commercial energy procurement is all about? Let us help

Business energy procurement refers to the process of purchasing energy supplies for commercial purposes. It involves sourcing energy contracts and suppliers, negotiating pricing, and ensuring energy supply meets the specific needs of an organisation – dependent on its size, sector and financial situation.

Here is a beginner’s guide to business energy procurement:

What type of business requires the support of a specialist procurement company?

Many businesses, especially those that consume a lot of energy, may require the support of a specialist procurement company. These businesses include:

  • Manufacturing – companies in this industry typically operate large-scale machinery and equipment
  • Construction – similarly, businesses in this industry operate machinery that is energy intensive
  • Retail – businesses in retail often have to run air conditioning systems and lighting throughout the day
  • Hotels and restaurants – these organisations need energy to power heating and cooling systems, cooking equipment, fridges, freezers and lighting
  • Data centres – in order to power IT infrastructure data centres run almost non-stop and the hardware can use high levels of energy on a daily basis
  • Hospitals and healthcare facilities – uninterrupted power supply is required for critical equipment

Why market volatility requires expertise to forecast effectively

Energy markets are complex, and prices can be volatile due to a whole host of contributing factors. As a result, it is challenging for businesses to predict their energy costs accurately. Energy procurement companies have the expertise to forecast market trends, monitor prices, and understand the impact of political and economic factors on energy markets. This knowledge allows them to help businesses secure favourable energy contracts and minimize risks.

How to get started when looking for commercial energy supply for the first time

When looking for commercial energy supply for the first time, businesses should follow these steps:

Conduct an energy audit: This involves assessing the energy consumption of the business and identifying areas for improvement.

Research energy suppliers: Businesses should research different energy suppliers and compare prices, contracts, and service levels.

Consider renewable energy options: Renewable energy sources such as solar, wind, and hydro power can help businesses reduce their carbon footprint and lower their energy bills.

Seek advice from an energy procurement company: Energy procurement companies can help businesses navigate the complexities of energy markets and secure the best energy deals for their needs.

In summary, energy procurement is a critical process for businesses that want to manage their energy costs effectively. By working with a specialist energy procurement company, businesses can benefit from their expertise, reduce their energy costs, and minimize risks associated with market volatility.