The process for purchasing energy is very different than other commodities. Each energy market is distinct – they have different structures, regulations, available suppliers, price drivers, non-commodity charges, contract types, terms, and conditions.
Before embarking on the process of purchasing energy, it is critical to clearly identify your objectives (price, budget, or some combination of the two) and willingness to accept pricing risk (risk tolerance).
- Prepare a request for proposal (RFP) containing the contract type(s), detailed terms and conditions, sites, and meter profile data necessary for suppliers to submit a pricing quotation.
- At the appropriate time, based on market conditions, release the RFP to selected energy suppliers and respond to any questions raised by suppliers.
- Assemble, evaluate, and rank supplier responses. Negotiate proposed price, terms, and conditions with the top-ranked supplier(s).
- Select the winning supplier, complete supply contract legal review, execute the contract, and manage the transfer of supply points.
Running an energy tender is a challenging task, but a detailed and well-timed tender can generate significant savings. Too many businesses make the mistake of running a tender near the expiration of their current supply contract, leaving them little choice but to take the prevailing market price.
NUS provides commercial and industrial businesses, professional energy procurement services. Our experienced team has the market expertise, price monitoring tools, management processes, and supplier relationships to ensure a successful outcome to your energy tender. Where you tender for a flexible contract, NUS can seamlessly provide you risk and portfolio management to support and optimize commodity purchases under your new supply agreement.