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Energy Insights

Navigating Business Energy: A Guide to Business Energy Contracts

Every twist and bend in the intricate web of commercial energy contracts can result in a brand-new opportunity or a one way ticket to paying more than you need to. That’s why we’ve prepared a guide for you to help you know what to look for when you next recontract your energy.

The Starting Point: Understanding Your Business Energy Needs

Before you start comparing business energy contracts, it's crucial to understand your business's energy needs. This means assessing your energy consumption patterns, your budget, and your sustainability goals.

At Energy Action, we believe that understanding your energy needs is the first step towards finding the right energy contract. Our team of experts can help you analyse your energy usage, identify cost-saving opportunities, and set realistic goals for reducing your carbon footprint.

Key Factors to Consider in your business energy contract

There are several important things to take into account as you navigate the energy contract market. You can use these to determine the best course for your company.

Price Stability

When deciding on the best contract, price stability might be a huge benefit. Contracts with fixed rates may offer stability, enabling you to budget more skilfully. However, they can prevent you from taking advantage of possible price decreases in the energy market. 

Contract Length

Your energy prices may be significantly impacted by the length of your energy contract. Longer agreements can stabilise prices and offer protection from future price hikes. They might, however, also keep you from benefiting from future price decreases. Shorter contracts provide you more flexibility, but they could cost more.

Green Energy Options

If sustainability is a priority for your business, you should consider contracts that include green energy options. Green options can range from contracts that include a certain percentage of renewable energy to those that allow you to purchase renewable energy certificates. Energy Action's green auctions can help you procure renewable energy at competitive prices.

Supplier Reputation

Another crucial issue to take into account is the energy provider's reputation. You should pick a provider with a solid reputation for dependability, client satisfaction, and sustainability.

Technology and Reporting

Finally, consider the technology and reporting capabilities of the energy supplier. Having access to detailed energy usage data can help you manage your energy more effectively. Energy Action's energy reporting services provide you with the insights you need to optimise your energy usage and reduce costs.

The Pathways: Different Types of Energy Procurement Methods

There are different types of energy procurement for different types of contracting. Each type of procurement offers something different, and the right choice depends on your specific needs and circumstances.

  1. Reverse Auctions: This innovative approach to energy procurement involves energy suppliers bidding for your business in a live online auction. The reverse auction process can drive down prices and ensure you get the best possible deal.
  2. Progressive Purchasing: If you prefer a more flexible approach, progressive purchasing enables you to buy energy in installments and take advantage of the market when prices are more favorable.
  3. Request for Proposals (RFPs): An RFP may be a viable choice for companies with complicated energy requirements. This process involves inviting suppliers to submit detailed proposals, which can then be evaluated based on price and other criteria that you specify.
  4. Solar and Green Auctions: If sustainability is a priority for your business, solar and green auctions can help you procure renewable energy at competitive prices.

Each of these procurement strategies has a unique set of advantages and the ideal option will rely on the particular requirements and objectives of your company. In the next section, we'll go into more detail about the elements to take into account when selecting the best contract for your company.

The Final Decision: Ensuring the Best Deal for Your Business

After considering the various factors and weighing your options, it's time to make the final decision. But how can you be sure you're getting the best deal possible?

Consult an expert

Navigating the energy market can be complex, and having expert advice can make a significant difference. Energy brokers, like Energy Action, have the expertise and market knowledge to help you make an informed decision. They can guide you through the process, help you understand the fine print, and negotiate on your behalf to ensure you're getting the best deal.

Use Technology to Your Advantage

Leveraging technology can also help you manage your business energy more effectively. Tools like Energy Action's Utilibox provide you with detailed insights into your energy usage, helping you identify cost-saving opportunities and make more informed decisions.

Regularly Review Your Contract

Finally, remember that your energy needs may change over time. Regularly reviewing your energy contract can ensure it continues to meet your needs and allows you to take advantage of any changes in the energy market.

Ready for change? Contact us.

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