Overhead Energy Service

Energy Negotiation

Energy is one of the more volatile indirect cost markets required by all companies. Price swings for gas and electricity can have a significant impact on the profitability of key operations as well as affecting overhead costs.

Our members benefit from hands-on support, market intelligence and access to industry leading e-market reverse-auction technology. Transparency within the process has already leveraged considerable gains for the end users.

Our partners have 200 specialist energy employees, perhaps the largest energy negotiating pools in the UK, and are able to make a significant impact for the different needs of different companies, large or small.

Purchasing strategies include the factors to be considered in the light of the latest information, such as whether to favour fixed or flexible contracts, market direction, risk factors and currency trends.

As the amount of energy that a business uses is pretty much constant year-on-year, there are just three price drivers that affect the prices that are able to be negotiated:

  1. Timing is the most important factor and hence every member receives a weekly Energy Price Update, written by some of the energy market’s leading forecasters. In addition to commentary on the underlying trends and market influences the weekly brief includes a simple guide to when it is best to renegotiate your contracts.
  2. The preparation of information is important to minimise the suppliers’ perceived risk and hence give them the confidence to quote competitively. As a consequence time is spent with all members to give suppliers an understanding of each member’s energy profile.
  3. The most competitive pressure is brought to bear in the negotiating process. To achieve this we undertake an online reverse auction using one of the major energy trading platforms.

The combined power of the Buying Group consortium with the market professionalism and technology of our partners enables member companies to enjoy the best possible terms.

Weekly Energy Update

The Weekly Energy Update provides a highly informative review of the latest factors affecting prices, together with specialist recommendations and purchasing strategies.

For example, the review of Commodity Prices shows the current situation affecting prices worldwide in commodities such as crude oil, coal, UK Gas and UK Electricity.

For more information, contact us.