Energy purchasing companies guide and provide expert knowledge in the process of purchasing business gas and electricity and securing the contracts with best interests of the clients. The expertise, knowledge and experience in this field of purchasing teamed with an understanding of the market help to substantially save money, resources and time.
There is compilation of the data before the supply market is approached. Then keeping in mind the requirements t markets are thoroughly searched to obtain the best possible contracts. Prices and the terms of the contract are negotiated on behalf of the client. Terms of credit are also clarified beforehand and incorporated in the contract. Depending on the organisation’s needs, contracts can be of the following types.
In this type of contract, the price of gas and electricity can be fixed for a certain timeframe. The tariff then remains unchanged and is contingent on the fixed volumes guaranteed. These types of contracts are best suited for organisations whose energy requirements are not large. They want price certainty and are averse to risks in the markets. They are looking at surety in the budgets and projections in terms of the costs associated with procurement of gas and electricity. They do not want administrative hassles.
In these types of contracts analysts procure only part of the consumption requirement from the wholesale market through the contractual term. This helps to benefit from the dips in the prices in the energy markets. It works best for organisations which have large energy requirements. They want to mitigate the risk by only purchasing a small part of their consumption at a given point in time.
How to procure business gas & electricity