An energy procurement RFP template should provide suppliers with a clear and consistent framework for preparing proposals. It should define sites and consumption, establish contract options, standardise pricing, address contractual risks and specify renewable energy, billing and service requirements.
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An energy procurement RFP template gives Australian businesses a structured way to request and compare proposals from electricity or gas suppliers. Instead of asking retailers for prices without defining common requirements, an RFP establishes the scope, consumption information, pricing format, contract expectations and evaluation process from the beginning.
This structure is important because energy procurement involves more than finding the lowest headline rate. Contract length, consumption patterns, pass-through charges, renewable energy requirements, billing arrangements and commercial risks can all influence the actual value of an energy agreement.
Energy Action's previous guidance on electricity supply contracts also highlights the importance of understanding energy requirements, comparing contract structures and reviewing terms rather than considering price alone.
A strong RFP therefore gives suppliers enough information to prepare competitive proposals while giving procurement teams a consistent basis for comparing them.
An energy procurement Request for Proposal is a document that invites suppliers to submit offers against a defined set of business energy requirements.
The energy procurement RFP template provides the structure for that process. It specifies what information the business gives suppliers and what information suppliers must return.
A comprehensive template typically addresses:
The objective is consistency. When every supplier responds to the same requirements, businesses can make a more meaningful like-for-like comparison.
Every RFP should start with a concise explanation of what the business wants to procure.
Provide an overview of the organisation, the commodity being purchased and the sites included in the tender. Also identify the intended commencement date and preferred contract durations.
A site schedule can contain:
| Information | Purpose |
| Site name and address | Identifies each facility |
| State and network area | Establishes location |
| Supply identifier | Confirms the relevant connection |
| Annual consumption | Indicates energy requirements |
| Current contract expiry | Supports transition planning |
| Proposed commencement | Defines the new supply period |
The RFP should also explain whether any sites may open, close or change significantly during the proposed contract.
Clearly defining the scope reduces the risk of suppliers making different assumptions.
Suppliers need reliable consumption information to understand the energy requirement they are pricing.
Provide historical electricity or gas consumption, preferably at individual-site level. For larger electricity users, interval data can provide additional insight into when electricity is consumed.
Businesses should also consider future requirements. For example, expansion, electrification, onsite solar or changes in production may alter future electricity demand.
Understanding consumption is also important when selecting an appropriate contracting strategy. Previous Energy Action content on forward electricity contracting emphasises reviewing historical electricity usage and understanding consumption patterns before negotiating supply arrangements.
The energy procurement RFP template should tell suppliers exactly which contract periods to price.
For example:
| Option | Commencement | Duration |
| A | 1 January 2027 | 12 months |
| B | 1 January 2027 | 24 months |
| C | 1 January 2027 | 36 months |
Requesting standard durations prevents one supplier from quoting 12 months while another quotes three years without providing comparable alternatives.
Contract duration should reflect the organisation's procurement strategy and risk appetite. Longer contracts can provide greater cost certainty, while shorter contracts may offer more flexibility. Energy Action's previous guidance similarly notes that contract length affects the balance between pricing stability and flexibility.
Pricing is one of the most important sections of an energy RFP. However, simply asking suppliers for their "best rate" can make proposals difficult to compare.
Instead, create a standard pricing schedule.
Depending on the procurement, suppliers may need to identify:
A standard schedule makes exclusions and additional charges easier to identify.
Businesses should compare estimated total contract costs rather than relying exclusively on the lowest energy rate.
Previous Energy Action guidance on electricity supply contracts highlights demand charges, exit fees and other contractual costs as factors that can affect overall value.
Therefore, apply the same consumption assumptions to each proposal wherever possible.
An attractive price can lose much of its value when it comes with restrictive contract terms.
The RFP should identify important commercial requirements before a preferred supplier is selected.
Energy Action's electricity supply contract material highlights issues such as demand charges, exit fees, automatic renewals and minimum consumption requirements as terms businesses should review carefully.
Ask suppliers to identify departures from required terms in a dedicated schedule. This approach allows contractual differences to form part of the evaluation instead of emerging late in negotiations.
If sustainability forms part of the procurement strategy, define the requirement clearly.
Do not simply state that renewable electricity is preferred. Specify what the organisation wants suppliers to price.
Requirements might involve renewable electricity products, Large-scale Generation Certificates, GreenPower or another defined arrangement.
For example, ask suppliers:
Businesses considering longer-term renewable procurement may also explore Power Purchase Agreements. Previous Energy Action guidance notes that PPAs can provide renewable energy access alongside longer-term pricing arrangements.
Clear sustainability requirements allow bidders to price comparable options.
Price is only one aspect of supplier performance.
For a multi-site organisation, inefficient billing or poor account management can create significant administrative work. Therefore, specify service expectations within the energy procurement RFP template.
Reporting requirements might cover consumption, costs, renewable energy, emissions or interval data.
Additionally, ask suppliers to describe their account management model, escalation procedures and expected response times.
Businesses should understand whether suppliers have the capability and resources to support the contract.
Ask bidders for information about:
The level of due diligence should reflect the scale and importance of the procurement.
Evaluation criteria should be determined before supplier proposals arrive.
A practical framework might include:
| Category | What to assess |
| Commercial value | Estimated total cost |
| Contract terms | Flexibility and departures |
| Risk | Pricing and contractual exposure |
| Capability | Supplier experience and resources |
| Service | Billing, reporting and support |
| Sustainability | Renewable energy offering |
| Implementation | Transition capability |
The weighting should reflect business priorities.
For example, an organisation focused on budget certainty may give greater weight to pricing stability. Meanwhile, a company with sustainability commitments may place additional weight on renewable energy products and reporting.
Most importantly, use consistent assumptions when modelling supplier offers.
The RFP should explain how the procurement process will operate.
Include:
Also establish a formal process for supplier questions. Material clarifications should be documented so bidders receive consistent information.
Finally, tell suppliers exactly what they must submit. A response pack might require a completed pricing schedule, supplier questionnaire, contract departures, renewable energy proposal and implementation plan.
A complete template can follow this structure:
| Section | Required content |
| Executive summary | Organisation and procurement objectives |
| RFP conditions | Tender rules and confidentiality |
| Timetable | Key procurement dates |
| Scope | Sites and supply requirements |
| Energy data | Consumption and load information |
| Contract options | Commencement and duration |
| Pricing | Standard supplier pricing schedule |
| Contract requirements | Commercial and legal terms |
| Sustainability | Renewable energy requirements |
| Billing and reporting | Administrative requirements |
| Supplier capability | Experience and resources |
| Evaluation | Assessment methodology |
| Response schedules | Mandatory submission format |
This structure should be customised rather than copied unchanged for every procurement exercise.
Several mistakes can reduce the effectiveness of an RFP.
First, incomplete consumption data may lead suppliers to make assumptions that complicate comparison. Second, focusing exclusively on the headline energy rate can hide other costs and contractual risks.
Businesses should also avoid allowing every supplier to use a different proposal format. Standard schedules make evaluation substantially easier.
Likewise, do not leave all contract negotiations until after selecting a preferred supplier. Identifying significant departures earlier provides a clearer view of each proposal's actual commercial value.
Finally, renewable energy requirements should be measurable. Define the required product, quantity or percentage and reporting expectations rather than requesting vaguely defined "green energy".
An energy procurement RFP template should provide suppliers with a clear and consistent framework for preparing proposals. It should define sites and consumption, establish contract options, standardise pricing, address contractual risks and specify renewable energy, billing and service requirements.
Just as importantly, businesses should establish their evaluation criteria and procurement strategy before going to market. This approach makes it easier to compare total commercial value rather than selecting a supplier based on headline price alone.
Energy procurement can become complex when businesses have multiple sites, significant consumption, renewable energy targets or specific risk requirements. Energy Action can help organisations develop procurement strategies, approach the energy market, compare supplier proposals and negotiate electricity supply arrangements.
Visit Energy Action to explore how professional energy procurement support can help your business control costs, manage risk and make more informed energy purchasing decisions.
An energy procurement RFP template should include the scope, site information, historical consumption, contract periods, pricing requirements, commercial terms, renewable energy requirements and evaluation criteria. It should also specify supplier response formats and the procurement timetable. Together, these sections create a consistent basis for comparing competing proposals.
Businesses should provide enough historical information for suppliers to understand total consumption and relevant usage patterns. Depending on the procurement, this may include annual usage, interval data, peak demand and seasonal trends. Expected operational changes should also be disclosed because historical consumption may not accurately represent future requirements.
Price is important, but it should not be the only consideration. Contract flexibility, additional charges, supplier capability, billing, reporting and renewable energy requirements can materially affect overall value. Businesses should therefore compare estimated total cost and commercial risk rather than relying solely on the lowest headline rate.
Suppliers should be assessed against criteria established before bids arrive. These criteria can include total cost, contract terms, risk, service capability, implementation and sustainability requirements. Using consistent criteria makes the evaluation more transparent and supports a defensible procurement decision.
A standard structure provides a useful starting point, but each RFP should reflect the organisation's specific circumstances. Site portfolios, consumption profiles, contract preferences, risk tolerances and sustainability goals can vary significantly. Therefore, businesses should customise the template before approaching suppliers.
