Tendering & Procurement

Over the 30 years or so since deregulation, suppliers have devised a variety of strategies through which buyers can connect to the market. As markets evolve, accessing benefits which historically have only been available to the very largest consumers, are increasingly being offered up to “mid-market” consumers. Gone are the days of taking for granted that suppliers have the upperhand…

Industrial & Commercial (I&C) supply options

In broad terms, I&C buyers can access three main types of supply contracts – “Fixed” (traditional Retail), “Flexible” or “Dynamic” (bespoke Wholesale)

Fixed

The supplier takes all the risks and calls the shots (best suited to budgets below £250k per annum)

Flexible

The customer assumes most of the risk and calls most of the shots (best suited to budgets over £1 million per annum)

Dynamic

The customer enjoys the privileges of Flexible, but with the budget surety of Fixed (best suited to budgets between £250k to £1 million per annum)

Successfully implementing an energy tender is both involved and time-consuming. Significant savings can be achieved through good-timing, vigilance and sometimes, patience. All too often, businesses wait until too near to their contract expiry before going to market. In any area of procurement, this is a mistake – energy is no different.

Why subject yourself to time constraint? It makes sense to commit to a protracted “trading window” of 6 to 18 months prior to contract expiry – that way, you’ll not be compelled to accept prevailing prices at the last minute. Instead, you’ll enjoy the relative luxury of establishing a well-worked risk-profile whilst assessing the impact of both summer and winter price conditioning across your portfolio.

Give yourself time – don’t make it too easy for suppliers and energy brokers to create that sense of urgency and panic upon which they all too frequently rely.

The tendering process can be broken down into 4 main stages:

  • We formulate the RFP (request for proposal) comprising the contract type, Ts & Cs, sites, and meter profile data enabling suppliers to respond with an offer.
  • When the time is right, we release your RFP to a panel of market-leading suppliers specialising in Industrial & Commercial agreements.
  • We collect, evaluate, and rank tender responses. Thereafter, where possible, we renegotiate the best offers to arrive at a frontrunner.
  • We propose the winning supplier, execute paperwork review, close the deal, and oversee the transfer (or renewal) of supply.

PEP-ICD have the collaborative account management experience, supplier relationships, flexible frameworks, proven processes, market insight, understanding of the sustainability impacts of supply contract styles as well as the dedicated expertise to oversee your tendering / procurement / risk-management needs from end-to-end.

We’re happy to put together comprehensive, provisional analysis without obligation.

Let us bring you up to speed.

How can we help?

How can we help?