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The Alchemist's Guide to Energy Savings: Turning Energy Costs into Business Gold

What if we told you there's an alchemist in the energy market, capable of turning this the stone that is business energy into gold? Our energy savings guide is here to take you into the realm of business energy brokers, the modern-day alchemists who optimise your energy costs and unlock savings.

The Alchemy of Energy Procurement

Energy procurement might seem like a mundane process, but in the hands of an expert energy broker, it transforms into a strategic manoeuvre that can significantly impact your business's bottom line. The process involves contracting for the supply of electricity, gas, and carbon certificates. It can be arranged directly by the contracting organisation or facilitated by an energy broker like Energy Action.

Energy procurement involves identifying the client’s needs, matching them to market conditions, sourcing and negotiating with energy retailers, creating competitive buying environments, organising and running procurement events, and negotiating and overseeing the signing of contracts. It's a complex process, but the potential savings make it worth the effort.

The Art of Energy Auctions

One of the key techniques employed by energy brokers is the use of energy auctions. Energy Action's live reverse auction tool, for instance, creates a competitive environment that drives prices down. On average, their reverse auctions generate a 20% savings difference between the first and last bids across the thousands they've run. It's a bit like having a team of negotiators fighting to get you the best deal.

The Power of Progressive Purchasing

Another strategy employed by energy brokers is progressive purchasing. This method uses the latest market intelligence and strategic, forward-energy advice to remove spot price exposure progressively. It's a way of taking advantage of wholesale price movements while managing risk. It's about making the energy market work for you, rather than being at its mercy.

Unravelling the Knots of Energy Procurement

In the labyrinth of energy procurement, business energy brokers serve as the guiding thread, leading businesses towards optimised energy costs. The second part of our journey into this maze takes us deeper into the strategies and techniques employed by these brokers.

The Power of Request for Proposals (RFPs)

One of the most potent tools in a business energy broker's arsenal is the Request for Proposal (RFP). An RFP is a formal document that invites vendors to submit proposals for a project or service. In the context of energy procurement, an RFP is sent to multiple energy retailers, inviting them to put forward their best quotes for a business's energy plan.

Energy Action, a leading player in the energy market, has honed the RFP process into a fine art. Their RFPs for electricity and renewable energy take a business's detailed energy portfolio and transform it into a clear buying proposition. This proposition is then presented to up to 15 of Australia's energy retailers, encouraging them to submit highly competitive offers.

The RFP process is particularly suited to large energy consumers with complex energy requirements. It turns the complexity of these requirements into a catalyst for savings. Here's how the process works:

  1. A deep dive is conducted into your energy needs.
  2. Advice is provided on how to drive down your energy prices and when to do it.
  3. Retailers are provided with your requirements in a way that aligns with their buying strategies.
  4. Your energy data is collated and compiled.
  5. Retailers put forward competitive offers.
  6. Proposals go through two rounds of scrutiny.
  7. Every aspect, from negotiable costs to Terms and Conditions (T&Cs), is reviewed.
  8. Assistance is provided to help you choose the ideal option.

Beyond Price: The Importance of Terms and Conditions

Securing the lowest energy price is undoubtedly important. However, the Terms and Conditions (T&Cs) of an energy contract can also have a significant financial impact on your operations. For large energy consumers, T&Cs are not set in stone and can be carefully reviewed and negotiated to best suit your business.

The Power of Technology in Energy Brokerage

In the realm of energy brokerage, technology is the linchpin that holds everything together. It's the engine that drives decision-making, cost savings, and the journey towards Net Zero. At the heart of Energy Action, a technology business thrives. They build technology that makes a difference, transforming utility data into actionable insights and delivering high-quality services that drive down energy prices and help businesses reach affordable Net Zero targets.

Energy Action's technology identifies energy inefficiencies, wasted energy, preventable emissions, and potential savings. It's a tool that turns unknowns into knowns, providing businesses with the knowledge they need to lower their usage and costs. But it's not just about the technology; it's also about the people behind it. Energy Action puts a lot of effort into finding the right software engineers capable of designing, developing, and maintaining a cutting-edge software stack.

The company follows a client-centric development lifecycle, building using the SaaS model. Each customer requirement ends up defining the product’s capability, which is ultimately offered to all clients. This approach, coupled with an agile process, enables the release of high-quality features that customers love - fast.

In the front end, Energy Action uses the latest cut of ReactJs, while the back end utilises the latest Microsoft stack paired with open-source libraries. They're closely partnered with Microsoft and are included in their AI and cloud programs. This partnership has resulted in a positive working relationship, as evidenced by Microsoft's case study on Energy Action.

Energy Action's technology philosophy is based on an API approach. Their data architecture is designed so that everyone can access the data in the same way. They don't build software for a select group of users; they build software that everyone can use.

FAQs

1. How does Energy Action's technology help businesses optimise their energy costs?

Energy Action's technology identifies energy inefficiencies and wasted energy, providing businesses with the knowledge they need to lower their usage and costs. It transforms utility data into actionable insights, helping businesses make informed decisions about their energy usage.

2. What is Energy Action's approach to software development?

Energy Action follows a client-centric development lifecycle, building using the SaaS model. Each customer requirement ends up defining the product’s capability, which is ultimately offered to all clients. This approach, coupled with an agile process, enables the release of high-quality features that customers love - fast.

3. What is Energy Action's technology philosophy?

Energy Action's technology philosophy is based on an API approach. Their data architecture is designed so that everyone can access the data in the same way. They don't build software for a select group of users; they build software that everyone can use.

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