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22.10.2023
Energy Procurement for businesses: an energy brokers guide
Finding the best energy strategy for your business is essential to the longevity and reputation of your company. However, with so many options and considerations needed before entering the energy market, making the right decision can be difficult and lead to inflated expenses if not carefully considered – this is where an energy procurement service can help!
Energy procurement is a vital service that is used to assess your business expenditure, review the conditions of the energy market, and find the best deals for your corporate space.
For more clarity on how energy procurement services can give your business a boost, we will be reviewing what energy procurement means and the benefits of using an energy broker to secure the best deal for your business:
What is energy procurement?
Commercial energy procurement relates to businesses conducting internal assessments of their electrical and gas usage and how it aligns with their expenditure, this includes personal usage such as light fittings and staff equipment or operational uses such as machinery.
Businesses will review their energy use and their current supplier contracts, and assess whether this contract is still viable for their business. By considering all these elements, businesses will then be able to make a decision about their energy expenditure and enter the energy market prepared to secure contracts that work for their needs and find the best rates.
Depending on the kind of business and the scale of operations, energy companies may offer different deals to compete with the businesses’ current energy contract and other energy companies on the market.
There are different types of energy contacts for businesses, these may include tariff monitoring, fixed-rate, or blended. Finding the right kind of contract depends on the business’s knowledge of the energy market, and if the knowledge is limited then business owners should consult with an energy broker.
What are the benefits of using an energy broker?
An energy broker can provide energy procurement services so businesses do not have to carry out assessments by themselves. Working with an energy broker can offer several benefits for businesses looking to manage their energy needs more effectively. These benefits include:
1. Cost savings: Energy brokers have in-depth knowledge of the energy market, helping clients secure competitive energy rates and favourable contract terms that work for their business. This can lead to cost savings on energy bills.
With fixed-rate energy contracts, clients can have more predictable energy costs, making it easier to budget and plan for the future.
2. Time savings: Searching for the best energy deals, negotiating with suppliers, and staying on top of energy contracts can be time-consuming, which is problematic for busy, fast-paced businesses. Energy brokers handle these tasks for businesses, freeing up time to focus on more important matters.
Energy brokers also streamline the procurement process, making the assessment and delivery of energy deals more efficient and transparent.
3. Energy market expertise: Energy brokers have a strong understanding of national and international energy markets, regulations, and trends. They can provide valuable insights and advice on when to lock in rates, helping clients make more informed decisions.
As part of the energy procurement service, brokers will assess a client’s energy needs and objectives, and then tailor their energy deal search to meet these specific requirements.
4. Renewable energy options: With ethical practices and sustainability a top priority for business owners and customers alike, energy brokers can help source renewable energy options, advise on green energy initiatives, and ensure that business practices align with government regulations for sustainable practices.
5. Continuous monitoring and risk assessments: Some energy brokers offer ongoing monitoring of energy usage and market conditions, allowing for adjustments to energy strategies which can save businesses money.
Since energy prices can be volatile due to issues within the market – brokers can help clients manage price risk by recommending switches when necessary and predicting market fluctuations.
Overall, working with an energy broker can provide peace of mind, cost savings, and a more streamlined strategic approach to managing energy needs, making the utilisation of one a valuable partnership for many businesses.
How can Next Gen Eco support my business’s energy procurement?
The energy procurement process is vital for businesses to stay on top of their expenditure and ensure that their energy practices are aligned with the energy market and government regulations. Business owners must secure the support of a certified, trusted energy broker in order to get the best energy offers.
That’s where Next Gen Eco can help.
Next Gen Eco is a North East based business specialising in energy-saving and electrical maintenance, energy procurement is just one of the many business-centred services we provide to ensure that businesses across the country receive the best support necessary for working with the energy market.
For more information on how to secure a better energy deal for your business, contact our team today.
