Energy Procurement Overview

Consultants are selling energy procurement services (expertise/solicitations/analysis/pricing) that customers can perform themselves…? It Seems very easyyyy and elementary...

Assemble your load data, account numbers etc...
Compile a list of suppliers from referrals or various web sites that sell in your area and then ask them for pricing...

Although suppliers will ask what kind of pricing is desired one often will hear five or six slightly different representations… or descriptions of the same price products.
If you have an affinity and the time for the research and educating yourself about the energy market, you can spend some time learning from suppliers… and picking up on the nuances of the price offers and the business in general...
A next possible step is sorting out the sales pitches, variations in the pricing (even when you ask for the same thing), and different contracts...

Return phone calls if you want to keep suppliers interested in pursuing your business...

Solicit pricing (formally or informally), evaluate the offers, pick a supplier, and sign a contract.

Even with your contract in place, you have no plan, no buying strategy, no trusted advisor and no assurance that the best future market opportunities will be presented by your selected supplier.

Your knowledge base is limited to what you learned from suppliers and whatever time you spent on the Internet.

Integrity: At the end of the day, whether a potential customer does business with us or not, we hold this attribute as our number one resource.
Objectivity: EFL is the client’s consultant and represents your interests. We have no preferred relationship with any energy supplier.
Market knowledge: our market expertise comes from a number of sources including:

On-going procurement work with a multitude of clients in a multitude of utility jurisdictions around the US and Canada.
On-going relationships with many suppliers who are a source of product information and market opportunities.
Regular review of multiple media information sources and research including: Internet, press releases, market studies, publications, newsletters, etc...
Periodic discussions with other energy professionals.

Experience: In energy terms our customer base has grown to over 250,000, MWhs/year and over 800,000 Dthms/year in competitive contracts since September 2006. Some of our clients are Fortune 500 entities.
Procurement Process: For our largest customers, we don’t just bid out loads and select the lowest bidder; we use a three pronged procurement strategy:

Initial risk analysis and strategy development.
Prepare an RFP-based buy.
Make on-going tactical/strategic buys along with periodic strategy reviews and adjustments.

Risk Management: Initial risk analysis and strategy development is a collaborative process. We work with our clients to develop the scenario options and assumptions for the analysis.
Cost Reduction: Savings may be achieved in three ways:

Risk Management (largest): managing market risk through buying group development and staggering of contract/supply terms… a more appropriate term is “controlling” or avoiding extreme costs.
Competition: getting multiple responsible suppliers to compete for your energy business (in competitive markets we strive for a 5-10% spread between supplier offers).
Client Management Time: reducing the time a client needs to spend on energy procurement and still assuring that it has responsibly discharged this function…. After the initial strategy development phase is completed, all supplier interfacing is handled by PRES - from contract review, RFP development, bidding, and contract award. At the conclusion of the process, bidders are informed, a bid summary (for management) is prepared and on-going market monitoring continues...

On-going Market Monitoring: With one eye on the client’s procurement strategy and another on the short and medium-term price movements in the market, EFL’s job is to present buying opportunities that fit the client’s risk and budget objectives.
Optional: On-going Bill Auditing and Budgeting Assistance.

Get a no pressure consultation with a experienced energy procurement professional by submiting this form or calling 315 789-2458.

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