Utility Saving ExpertEnergyBusiness EnergyEnergy Procurement for Large UK Businesses

Energy Procurement for Large UK Businesses

Energy procurement involves securing the most economical supply arrangements possible. As the market has evolved, Utility Saving Expert has pushed forward to proactively identify new opportunities to help our customers get the best business energy deals. We’re here to help you cut costs on your gas and electricity bills. To get started and see how much you could save, use our free online comparison tools.

What is energy procurement?

Passthrough energy procurement

Non-commodity charges are passed through at the current market rate, whereas wholesale charges will be fixed. Passthrough contracts could in fact reduce your business energy bills.

Passthrough energy procurement is better suited to businesses that do not have a fixed budget and are not averse to some level of risk. A passthrough contract may be the right solution for any business manager/owner who wants to be more involved in the procurement process.

However, it’s important to make mention that energy usage during peak periods can be very expensive. This is where Utility Saving Expert can help your business better understand how it’s using electricity and gas.

Advantages of passthrough energy procurement

  • You will benefit if business electricity prices fall
  • You will normally be offered a lower price compared to fixed energy procurement as you will be taking on some level of risk with market fluctuations
  • If wholesale market prices decrease in the future, you will be able to take advantage
  • Passthrough energy procurement is great for customers who can manage usage patterns to avoid expensive triad charges


Disadvantages of passthrough energy procurement

  • If you’re on a fixed budget, the uncertainty can be a real challenge
  • Third-party costs can and will fluctuate
  • More complex to manage in comparison to fixed energy procurement
  • Initial cost estimates are not a guarantee of future costs

Flexible energy procurement

Public energy procurement

Public procurement is the process agencies and governmental departments purchase products and services from the private sector. In this context we are focusing on purchasing energy.

To conclude, there are a number of different ways to procure energy, as we have explained above. Each process has its own advantages and disadvantages that must be taken into consideration before making a decision on the best option for your business needs. Your choice will determine how much you’re able to save on gas and electricity. However, making the wrong choice could be very costly during the contract period.