Energy procurement can be complex and time consuming. There is an abundance of information available which in many cases only complicates the issue. That's why it's important to have professional advice to make the best decisions about commercial energy procurement. Digren Energy has helped more than 1,000 companies save on their energy bills, saving thousands of euros.
When you contact with us for a quote on your commercial energy deal, we’ll check prices and tariffs with all the major providers in the Republic of Ireland and the UK. In addition, to checking tariffs we analyse the bill to see where additional reductions can be achieved.
These savings can be significant. In many cases, there is no need to even change your existing provider. Our primary objective is to reduce your cost, but also to fix these costs from rising for a period of up to three years.
Even if you are in a current contract with a provider we can, in certain cases, advance buy your energy and have a provider issue a contract with a future start date.
Benefits of energy procurement for your business
Flexibility
Get rates customised to your needs, either through fixed or variable rates. Also lock in your variable rate at a time that suits you.
Budget planning
Know the cost of energy in advance for better cost planning. and make better business decisions.
Cost reduction
Get lower prices compared to market prices through comparing different suppliers.
Improve competitiveness
Maximise the competitiveness of your business with lower and more stable costs of your energy consumption.
Easy management
Leave your energy tariffs in the hands of professionals. We will take care of the complete management to obtain the best price with different distributors.
Understanding Energy Procurement for Business
What exactly is Commercial Energy Procurement?
Business energy procurement is the process by which a company chooses and signs a contract with an energy supplier to provide electricity, gas, or any other type of energy required for its operations.
This type of procurement is done with the aim of obtaining the best conditions and prices for energy supply, ensuring the necessary supply for the proper development of business activities.
In business electricity procurement, different aspects can be negotiated, such as the energy rates (whether variable or fixed), the contract term, the type of energy used, and other additional services offered by the supplier
Why Energy Procurement is Important?
Commercial energy procurement is a fundamental part of business because of its strong potential to optimise costs and maximise a company's competitiveness. This includes both large and small companies.
Energy procurement for commercial plays a key role in paying only for what is needed. Currently, there are many companies that overpay their rates, for example, companies are paying for higher consumption than what they actually spend.
Therefore, it is important to consider and know what energy requirements your company really needs. All companies have different energy requirements. For example, a small company does not have the same energy requirements as a large energy company.
Without the necessary knowledge of the available options in the market it is easy to make incorrect decisions which can directly affect the economic performance of your business, this is why we recommend to work closely with energy consultancies to have a personalised advice to your needs and make the best decision to optimise and maximise the economic performance of your company in short and long term.
Steps for Energy Procurement
1.
Receive energy bills
The interested company sends its latest energy invoices to the consultancy.
2.
Analyse the energy requirements of the company to avoid overpaying.
Analyse energy needs
3.
Options & decision
Investigate energy supplier options and make the best decision
4.
Signing, monitoring, maintenance of contracts and conditions
Procurement & maintenance
Energy Procurement as an essential part of a business
Ensuring stability and competitiveness
Commercial energy procurement is an essential part of any business that uses energy in its operations. By strategically procuring energy, businesses can secure the lowest price, reduce their energy supply risk and take advantage of energy supply opportunities.
With energy prices constantly fluctuating, businesses can use electricity procurement to ensure their prices stay competitive, reduce rising energy costs and smooth out costs over time. In addition, energy purchasing can be done to help businesses meet their sustainability goals by switching to renewable energy sources such as wind and solar.
Strategic business energy procurement may help businesses qualify for financial incentives and rebates when available in order to reduce their energy costs further.
Main objectives of energy procurement
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Provide additional support to your overall strategic and business planning
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Pair your requirements to relevant suppliers and energy options
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Better control and risk management of your energy costs
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Provide short, medium and long term analysis of fundamental and technical market drivers
The process is very simple and in general proposals can be generated within a couple of days. You’ve nothing to loose but potentially lots to gain.
What are the different kinds of energy procurement contracts for business?
Fixed Contracts
A fixed contract, also known as a fixed-term tariff, is a type of contract where the costs for energy units and standing charges remain consistent for a set period of time, typically between one and five years. Your monthly energy bills will still vary based on your usage, but you will not be affected by any changes in rates or charges during the duration of the contract.
Fixed contracts offer a sense of stability for businesses, protecting them from sudden price increases. However, if energy costs decrease during the contract, customers will not benefit from the lower rates. Once the contract expires, businesses can choose a new tariff that reflects current market rates.
Benefits of Fixed Contracts
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Consistent energy costs throughout the duration of the contract
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Protection from sudden price hikes
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Budget certainty for businesses
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Option to switch to a new tariff once the contract ends to take advantage of lower rates.
Disadvantages of Fixed Contracts
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Energy costs may not reflect any decreases in market rates
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Limited flexibility to change tariffs before the contract ends.
Meter Profiling
We carry out a full analysis of your existing meter profile and assess if changes are needed. Using the Digren Energy algorithm we prepare a report for you outlining any proposed changes and how they would impact your bottom line.
Tariff Optimisation
Verification and review of your current energy tariff, where after analysis we present you the results and take the most optimal decision for the reduction of energy costs.
PSO Levy adjustment
The PSO levy is a controlled cost and is applied the same for each provider. This charge cannot be changed. However, it is calculated on consumption with set rates for different tariffs. If through the tariff optimisation we have made changes then we ensure these are passed on by adjusting the PSO levy to reflect the amended tariff.
Tendering of seasonal rates
We look at the rates available from the different providers. We look at the summer and winter rate as well as the night and day rate. We profile this through the Digren Energy algorithm in conjunction with your previous 12 months consumption to establish if the proposed rates work for you. We engage with different providers to find the one best suited to your business
Hedging Options
This applies to any of our large energy user clients. Gas dictates the cost electricity in Ireland. We monitor gas prices daily and provide support and advice to our clients. We can hedge the market with blocks of power adding additional savings. Our policy in regard to hedging is conservative and we have a clear understanding of what our client wants or expects to achieve
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