In a climate where companies are facing ever more complex, volatile and demanding conditions when making utility purchasing decisions, effective price risk management is crucial.
We have extensive experience in the Electricity, Gas and Water markets offering a range of services to implement the most cost effective strategy for your requirements, resulting in business improvement through technical expertise and market knowledge.
Our staged procurement approach includes:
- Stage 1 – Strategy Development
- Stage 2 – The Tendering Process
- Stage 3 – Our Recommendations
- Stage 4 – Contract Award
- Stage 5 – Post Contract Award Support
Working closely with our customers we seek to assist them to reduce their exposure to uncertainty in the utility wholesale markets through the development and implementation of a clearly defined strategy for the procurement of the physical supply.
Benefits of using our Procurement Expertise:
- We will assist you to mitigate your exposure by developing customised strategic risk products based on your specific business objectives, risk-tolerance and the prevailing market context.
- As utility markets are incredibly complex we have individuals with the necessary skills, professional experience and knowledge to operate in these markets.
- We undertake daily real time monitoring and analysis of wholesale prices and market activity.
We will work closely with you throughout the process, initially seeking to establish your risk appetite and determine your budget parameters. We will then competitively source your Electricity, Gas and/or Water supplies and provide solutions which are best geared to your specific requirements. These solutions will be designed to maximise market pricing opportunities as they arise, whilst ensuring that your price risk exposure is minimised.
Our service provision will typically comprise the following work stages:
Stage 1 – Strategy Development
- Determine your risk profile
- Analyse sensitivity to future price changes and quantify acceptable risk.
- Agree with you a purchasing strategy appropriate to your risk profile and operational requirements.
- Provide you with any assistance that you may require in order to communicate to and seek approval of internal stakeholders to the risk management strategy proposed.
Stage 2 – The Tendering Process
- Analyse historical loads and forecasts for future Electricity, Gas and/or Water demand and agree the validity of such data with you.
- Prepare all relevant site and consumption tender data for incorporation in to the documentation.
- Prepare formal tender documentation for inviting proposals from the supply market in accordance with the purchasing strategy agreed in Stage 1.
- Issue an Invitation to Tender to selected suppliers seeking proposals in accordance with the agreed strategy.
Stage 3 – Our Recommendations
Prepare a detailed management report outlining the offers received together with a recommendation on a proposed strategy for contract award.
Stage 4 – Contract Award
- Implement in a timely manner, the agreed contract award strategy arising from Stage 3 to ensure that you achieve the optimum financial terms available to you.
- Facilitate the acceptance and signing off of the preferred supplier’s proposal.
- Communicate the award decision to all Tenderers.
Stage 5 – Post Contract Award Support
- Manage with the successful supplier(s) the implementation of the contract(s).
- Through our Utility Team you will have continuous access to utility specialists who are able to provide you with current marketplace and pricing advice to enable you to develop your future contracting strategies.
If you would like to discuss how we can support your organisation, please get in touch.