Fixed and Flexible Energy Procurement from Envantage’s In-House Trade Desk.
When procuring utility contracts most organisations will generally express a preference for either obtaining the best price possible or achieving budget certainty. Understanding your requirements and whether they are more driven by the need for budget certainty or lowest possible price, allows Envantage to build a strategy that perfectly suits your particular needs and aspirations.
Whether you’re looking at fixed or flexible energy contracts our dedicated, in-house team of energy experts build a strategy individually suited to your organisation and offer expert advice and support to facilitate your energy purchasing requirements and help you to make better informed decisions
What to choose – Fix or Flex?
At their most simple level all energy contracts are the same, they all:
- Contract you to an individual supplier
- For a fixed amount of time
- For an agreed volume
- Allow you to ‘fix’ or ‘pass though’ the non-commodity elements
Fixed price contracts
With a fixed price contract, you’re committed to a single price from the point of signature for a pre-agreed volume of energy. Fixed price contracts are perfect for companies who want to exercise strong budgetary control and for those who use consistent volumes of energy from one year to the next.
To maximise the benefits of contracting a fixed price its important not to restrict yourself to a small window of opportunity when placing your contracts. The UK energy markets typically fluctuate 20%-30% annually and giving yourself a longer window of opportunity to place your contract allows the experts within the energy team at Envantage to assess the market and present you with the best opportunity to take advantage of these fluctuations and place your contract during market lows.
In short, engaging with experts early maximises your chance of achieving the best results.
Flexible price contracts
With a flexible contract we can influence the price you pay for your energy based upon the volatility within the energy market prices and use a cap mechanism to give you ultimate price certainty. We can also revise volume forecasts within these contracts; ideal if your sites are undergoing large scale efficiency programs or, indeed, any changes that will have a dramatic effect on your consumption volumes.
Flexible contracts need managing so at Envantage we have our own Energy Desk in-house. Our expert energy traders have access to real time market intelligence and wholesale prices and will work with you to consider the best type of flexible product for your budgeting needs.
Using a flexible contract reduces risk by:
- Allowing a much more transparent view of the price,
- Enabling us to isolate price and understand the supplier’s cost,
- Allowing us to focus on the commodity itself.
Importantly this flexibility allows us to greatly reduce the risk of entering into a contract at the peak of the market and having to stay there for at least a year. It also allows us to participate in market downturns and isolate your business from market upswings.
Within the framework of flexible contracts Envantage have created three products aligned to your budgetary requirements
– Great for Budgetary Certainty with a fixed price for each year of your contract
– Great for Budget Certainty and High Performance; an agreed price for each year and a performance rebate at each anniversary
– Great for Price Optimisation with a fully managed aggressive strategy
Envantage can help you to achieve your energy procurement objectives. Call Envantage today on 0800 054 2577 or email firstname.lastname@example.org.
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