How can an organisation procure energy?

You can either procure energy in-house or you can use an energy broker to look for an energy supplier on your behalf. You should look for an energy contract that is cost effective meets specific needs. Depending on your level of risk you may prefer fixed or flexible rates and many organisations have special requirements due to their energy consumption depending on the industry.

Energy Procurement Services

Q: What is the aim of energy procurement?

All organisations require energy resources such as natural gas, electricity and water to power their operations. All organisations will aim to obtain the most economically practical energy and water deals for their organisation, that takes into account their consumption, predicted usage and the potential sustainability and renewables goals

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Navigating today’s volatile energy market can be surprisingly complex. With multiple suppliers offering different contract structures, perks, and green options, it is challenging to identify the best deal and interpret the fine print. Choosing the wrong contract can lead to inflated costs and needless administrative burdens. That’s why a thorough, well-informed approach to energy procurement is essential. Our consultants help you cut through the complexity so you can secure an energy contract tailored to your business needs—without the hassle.

Energy Contract Tendering

At Professional Energy Services, we help you manage the purchase of business energy and utility contracts. Whether your goal is price optimisation or flexible purchasing, we will find the right energy contract for you. We work closely with you to understand your requirements, business infrastructure, attitude to risk, energy consumption, and predicted usage. We then negotiate with vetted suppliers on your behalf—running a full national tender that creates a competitive environment to ensure you get optimal value from the marketplace. This can include fully fixed products or flexibly bought energy, depending on your preferences.

Why Tendering Matters

Selecting the best option from multiple daily rates and varied tariffs can be challenging. By putting your energy supply contract out to tender inherently mitigates risk by comparing multiple suppliers, contract terms, and market scenarios, you can compare offers objectively and choose the one best suited to your consumption level and risk tolerance. Our independent advice focuses solely on your best interests, leveraging market insights and negotiation expertise to help you make a well-informed decision.

Risk Management

Energy procurement isn’t just about finding a good rate; it’s about protecting your business from sudden market swings. At Professional Energy Services, we continuously track wholesale energy prices, using real-time data and advanced tools to spot emerging trends early.

We tailor each strategy to your unique risk tolerance whether you need the stability of a fixed contract or the flexibility to capitalize on falling prices. Throughout the process, our team will keep you informed about market movements and their potential impact on your costs. By combining proactive monitoring,dynamic planning,and expert negotiation, we help ensure your energy strategy remains current, cost-effective, and aligned with your overall business objectives.

Our 6 Steps to Approach Energy Procurement

1 – Understanding your goals

We take the time to understand your energy needs, business objectives, and level of risk tolerance. Whether your focus is cost optimisation, sustainability, or budget certainty, we ensure your procurement strategy is tailored to support your goals effectively.

2 – Energy Audit & Analysis

We start by reviewing your current and projected usage to determine your exact energy requirements. By understanding your consumption patterns, we can plan a tendering strategy that aligns with your operational needs.

3 – Market Monitoring & Timing

Our team continuously tracks wholesale energy market drivers and price trends. This allows us to identify the most advantageous time to approach suppliers—maximizing your potential savings.

4 – Invitations to Tender (ITTs)

We issue ITTs to a carefully selected list of suppliers that meet your criteria. This could include green energy requirements, automated meter reading (AMR), preferred payment terms, or specific contract clauses.

5 – Contract Evaluation & Comparison

Every contract we receive is analyzed in detail, ensuring you have a clear breakdown of terms, pricing, and conditions. We then compare all offers side-by-side so you can see which option presents the greatest overall value.

6 – Negotiation & Custom T&Cs

We negotiate on your behalf to secure favourable contract terms drawing on our market knowledge to advocate for your best interests. Where possible, we incorporate custom T&Cs to reduce operational costs and deliver long-term efficiencies.

By following this structured, transparent approach, we guide you toward an energy contract that balances cost, risk, and flexibility—so you can focus on running your business while we handle the complexities of energy procurement.

Fixed Energy Procurement

A fixed energy procurement allows you to fix all your energy charges for the long-term and secures all of your commodity and non-commodity costs.

Benefits:

Budget certainty
Protection against third-party costs
Protection against large market swings
Simple billing
Less Management time needed

Flexible Energy Procurement

Flexible Energy Procurement enables you to take multiple positions in the market, allowing you to manage your position actively and take advantage of any downward trends.

Benefits:

Multiple buying opportunities
Greater transparency
The possibility of selling back
Take advantage of a falling market
Ability to re-forecast volume

Water Procurement

You can now tender a contract from a range of water suppliers instead of being limited to a single vendor.

Benefits:

Improved services
Competitive rates
No more regional monopolies
Varying contract options

Energy Procurement FAQ

What is energy procurement?

Energy procurement is the strategic process of sourcing your required energy by purchasing it from a third party energy supplier or local distribution company (LDC).

What is the aim of energy procurement?

The obvious aim is that every business requires energy resources such as natural gas and electricity to power their operations. All businesses will aim to obtain the most economically practical energy deals for their organisation, that takes into account their consumption, predicted usage and the potential sustainability and renewables goals.

How can my company procure energy?

You can either procure energy in-house or you can use an energy broker to look for an energy supplier on your behalf. When procuring energy, you should look for an energy supplier that is cost effective and competitive on price but also a contract that meets your needs specifically. Depending on your level of risk you may prefer fixed or flexible rates and many businesses have special requirements due to their energy consumption depending on the industry.

What are the pros and cons of procuring energy in-house?

If you decide to do your procurement in-house you will gain savings due to avoiding the broker or consultancy fees. The disadvantage to in-house procurement is that it requires a lot of research to find the best deal and can be very time consuming, On top of this you may make a mistake without the help of an expert and this could result being stuck in an uncompetitive fixed-term contract that costs your business more money than it should, Also you are unlikely to be offered the best tariffs if you work with energy suppliers directly, whereas a broker has access to more competitive rates.

What are the benefits of outsourcing energy procurement?

The benefits of outsourcing your energy procurement to an energy specialist include:

They will work on your behalf to review all the available energy supply contracts and select the tariff that best suit your businesses’ needs, saving you time and stress as your no longer searching through different tariffs and reviewing energy contract small print
Reduced risk of your business being placed in an inefficient contract due to a consultants industry experience
Access to cheaper tariffs that business owners would not see if working directly with suppliers.
Transparent advice tailored to your business objectives which include lower risk of unforeseen charges, hidden fees, and costs and more informed load forecasting

Speak to an energy consultant to discover the best energy procurement strategy for your business.