In the ever-evolving energy landscape, adopting an intelligent approach for...
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The Business Benefits of Smart Energy Procurement
William Oliver
Head of Business Development
Overview
- Adopting intelligent energy procurement strategies enables UK businesses to achieve significant cost savings, enhance sustainability efforts, and improve operational efficiency.
- By securing competitive rates and using fixed or flexible supply contracts, businesses can manage price risks and ensure budget stability.
- Procuring renewable energy helps reduce carbon footprints, improves brand reputation, and meets 2030 Net Zero targets.
- Intelligent procurement services provide expertise in navigating complex energy markets, leveraging technology for real-time energy management, and supporting sustainability goals.
In the ever-evolving energy landscape, adopting an intelligent approach for energy procurement is becoming a crucial asset for UK businesses.
By strategically managing energy purchases, you can achieve significant cost savings, enhance sustainability and net zero initiatives, and improve operational efficiency for your business.
So, what tangible benefits could you realise by incorporating an intelligent utility procurement strategy?
Cost Savings and Budget Stability through Efficient Procurement
One of the most immediate and tangible benefits of smart energy procurement is cost control: protecting budgets, achieving savings and managing price risk.
By leveraging energy procurement services, your business can secure competitive rates and avoid potential pitfalls of market volatility.
Fixed price contracts, for example, provide budget certainty by removing all market exposure.
Market price movements, up or down, will have no impact on costs for the fixed contract term, which promotes accurate financial planning and efficient allocation of resources.
Flexible supply contracts allows you to execute a reactive trading strategy to manage market exposure and achieve the right balance of exposure to opportunity (and mitigation of risk).
Enhanced Sustainability with Renewable Energy Procurement
As we approach the 2030 Net Zero deadline, ‘renewable energy’ is no longer just a buzzword; it is a business imperative.
Renewable energy procurement is a critical component of a company’s carbon management plan and overall sustainability strategy.
By sourcing energy from renewable sources like wind, solar, and hydro, your business can significantly reduce its carbon footprint and enhance your brand’s reputation as a business that cares about its environmental impact.
There are several options to procure green energy supplies, including Renewable Energy Guarantees of Origin (REGO) and Power Purchase Agreements (PPA) depending on your budget and your energy requirements.
In a competitive business environment, every advantage counts.
Companies that adopt sustainable solutions and demonstrate a commitment to renewable energy procurement can differentiate themselves from their competitors.
This can be particularly appealing to environmentally-conscious consumers and investors looking for companies with strong ESG (Environmental, Social, and Governance) credentials.
Risk Management in Business Energy Procurement
The energy market is inherently volatile and is often reliant on intermittent renewables and global supplies, or influenced by weather, geopolitical events, natural disasters and economic shifts, both at a local and global level.
There is an unseen benefit, however: adopting an agile, flexible procurement strategy will enable your business to capitalise on market lows, and consistently ‘locking in’ lower rates can generate significant cost savings.
Naturally, there is an inherent risk, so a robust risk management strategy is essential.
A flexible procurement approach requires a dedicated team, and the ability to assess market analytics and predict outcomes, which is why businesses often rely on service partners to achieve their desired goals.
The Importance of Intelligent Procurement in Today’s Energy Landscape
As the UK transitions towards a more sustainable energy future, the importance of intelligent procurement cannot be overstated.
Carbon reporting and renewable energy sources are the new cornerstones for ethically minded UK businesses (and the Public Sector).
As we fast approach the 2030 Net Zero deadline, it is apparent that businesses have to invest more in sustainability programmes.
By adopting an intelligent procurement strategy, we can produce immediate cost savings that you can use to support sustainability initiatives.
Navigating Complex Markets with Energy Procurement Services
The energy market is complex and constantly changing. Intelligent procurement services provide businesses with the expertise and tools needed to navigate this complexity. From understanding regulatory changes to predicting market trends, these services equip businesses with the knowledge they need to make informed decisions.
Leveraging Technology for Energy Management for Businesses
Technology plays a crucial role in modern energy procurement. Advanced software and analytics can monitor energy usage in real-time, predict future consumption patterns, and identify cost-saving opportunities. By integrating these technologies, businesses can stay ahead of the curve and make proactive decisions.
Supporting Renewable Energy Goals Through Sustainable Solutions
As the UK government sets ambitious targets for reducing greenhouse gas emissions, businesses are under increasing pressure to align with these goals. Renewable energy procurement is a key strategy in this alignment. Intelligent procurement services help businesses identify and secure renewable energy sources, ensuring compliance with regulations and contributing to national sustainability targets.
How EIC Partnership Can Benefit Your Business
At EIC Partnership, we are committed to helping you find the energy contract that best meets your business requirements and your long-term goals.
Regardless of the contract type you opt for, you can be confident that your account will be expertly managed to its fullest potential, and that we will explore every opportunity to help you achieve cost savings.
Our seasoned Procurement Team will provide exceptional support, and with our timely market intelligence reports, you will have the detailed insights needed to make informed decisions that drive your business’s success.
Learn more about our Energy Procurement services or get in touch with us today to find out how much we can save, together.
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Read MoreWhich suppliers does EIC work with?
EIC stands out from other energy consultancies because we’re completely independent.
This independence allows us to offer supply options from a wide range of energy suppliers, all of whom are unrelated.
Our energy advice is unbiased, giving you the freedom to make informed decisions for your business.
We have a proven track record of skilfully negotiating cost-effective contracts, ensuring you consistently get the best energy prices when you partner with us.
What if I am already with an energy consultancy?
If you’re already working with an energy consultancy, it’s a good idea to start exploring your options well in advance, preferably 18 to 24 months before your current supply contract expires.
It’s essential to distinguish between your energy supply contract and your energy consultancy agreement.
You have the flexibility to switch your energy consultancy while keeping your current energy supplier intact.
What happens after the energy procurement step?
Our comprehensive account managed service provides our clients with peace of mind throughout the entire energy procurement process.
When you choose our fixed energy procurement service, we’ll assign an account manager to you, someone equipped with the expertise and abilities to provide a customised solution that aligns with your unique needs and requirements.
The professionals who make up our dedicated procurement team are well-versed in resolving inquiries and skilled in engaging with energy suppliers to negotiate contracts on your behalf.
When is the best time to renew my energy contract?
The timing for transitioning to a new energy contract is flexible; you aren’t bound by a fixed schedule or renewal date.
Given the ongoing high volatility in the global energy market, it’s increasingly crucial to look beyond traditional renewal dates when contemplating a new contract.
