Energy prices have increased significantly over the past few years. Net Zero commitments and the inevitable decarbonisation of the global economy is due to accelerate these increases. Due to current market volatility and increasing non-commodity costs, it is now more important than ever to have a clear purchasing strategy aligned with your business objectives.
E2 provides comprehensive electricity, gas, fuel oil and water procurement solutions. With vast experience in the wholesale and retail sides of utilities, we are able to offer varied solutions to all procurement needs, including a wide range of value-add services. Procurement is a key component of E2’s 360° ethos of providing our clients with Total Energy Management, linking into risk and demand strategies to realise optimal cost reductions.
First and foremost, we establish a procurement strategy for your business. Whether you are looking to achieve budget certainty, budget improvement, price optimisation, or a combination of all three, our analysts will develop a strategy to meet your objectives. We then prepare your portfolio for tender and test the market for pricing and supplier interest. We are then in a position to fix contracts once market conditions are favourable. Our team look after the full transition of incoming and outgoing suppliers and ensure transfer issues are dealt with professionally and promptly. Our bureau then provide ongoing support with invoice validation services, budget forecasts and a variety of other value-add services.
E2 studies market movements across all energy and commodity sectors to ensure that customers are well informed. We simplify the intricacies of a very complex market and recommend a suitable contract structure, based on an organisation’s consumption profile and strategic plans. We work hard to ensure utility contracts are secured at the optimum time, offering our clients the most suitable contract solution at the best possible price.
In addition to support your Net Zero ambitions we can source and arrange Power Purchase Agreements buying direct from the generator e.g. the owner of a PV or wind farm with many benefits including price certainty through negotiation of longer contract terms at agreed price points.
E2 studies market movements across all energy and commodity sectors to ensure that customers are well informed. We simplify the intricacies of a very complex market and recommend a suitable contract structure, based on an organisation’s consumption profile and strategic plans. We work hard to ensure electricity contracts are secured at the optimum time, offering our clients the most suitable contract solution at the best possible price. As the UK seeks carbon neutrality by 2050, we help our clients explore all green options in the way their energy is generated.
- Fixed price contracts are the most common, where energy prices are agreed for a specific contract duration. The advantage with Fixed is that it provides budget security with known rates. The main disadvantage is that should the wholesale market fall, then this cannot be exploited.
- Flexible contracts tend to fix in some or all of the non-commodity costs but allows the wholesale element to be locked in at different stages either before the contract start date or during the course of the contract term. Flexible contracts have the advantage of unlocking savings in a declining wholesale market in a way that fixed cannot. However, they do not give the same budget security and can be more risky than a fixed option, should the market rise.
- Variable contracts are like flexible, but they fully track the market, so are subject to peaks and troughs. The rewards of a falling wholesale price are obvious, but are potentially countered by the penalty of a cost spike.
Our analysts demystify the variety of contract offers available from all suppliers and provide guidance on the most suitable deals that meet your objectives.
- Like power, gas is purchased from an ever-moving wholesale market. Unlike power, the price achieved on a gas contract is far closer aligned to the market, with fewer non-commodity charges having an impact. Prices move closely in relation to the crude oil market, but are also affected by more obvious correlations such as demand being driven by temperature fluctuations.
- E2 works closely with clients to demystify the vast array of gas contract offers & provides clear guidance on securing favourable contracts at the best possible price.
- Green options are considered in the purchasing of gas, be it carbon offset to the Kyoto protocol, or even the greenest gas from farm waste methane.
Fuel Oil Contracts
- Deregulation of the water market in England happened in April 2017. E2 has been helping clients secure competitive water contracts in Scotland since 2008 and is therefore well placed to support you in switching to a better provider.
- From our perspective, this is a welcome shake up of the monopolistic water supply industry. In the short term, E2 expects to see improvements in customer service, billing and ‘value adds’, such as smart metering, as well as a reduction in costs as competition grows.