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Basket Procurement is the solution your business has been looking for

As business owner or energy manager, you are no doubt concerned by the dramatic rise in energy costs over the last 12 months. The price of energy has risen to unprecedented levels and show no sign of abating. If you are coming out of your energy contract in the next 6 to 12 months then now is the time to look at your contracting options. Most businesses are familiar with fixed and flexible procurement, however more and more businesses are now looking at basket procurement and the benefits it can deliver.

What is basket procurement?

Basket procurement is a type of energy procurement where you join a group of business and the power of the group means that you bulk buy to obtain more competitive prices than if you were buying on your own. This allows you to access better rates through economies of scale, potential saving your business money. If your business consumes more than 750kWh per annum, then basket procurement could be the perfect solution for you. At eEnergy, we offer our own basket procurement service, allowing you to benefit from the buying power of the group.

How does eEnergy’s basket procurement work?

At eEnergy, we have a variety of baskets set up with energy suppliers so we can ensure you are fitted with the best basket for your business. Once you have joined the relevant basket, we will monitor the factors that can impact the demand and availability of your energy prices, including oil, coal and carbon and currency markets, planned and unplanned outages, not forgetting impacts caused by environmental factors, such as global economic news, weather forecasts and LNG cargo schedules.

We will track your position and costs within the basket to understand the impact on your actual energy costs and bottom line. Our experts will combine this understanding with their expertise in the wholesale market to time trade activity to minimise risk and maximise your benefits.

 

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Types of basket procurement.

There are three types of basket procurement, which are as follows…

Purchase in advance: This is the procurement where the volume is purchased before delivery for a 12-month supply chain. This delivered price is fixed for the 12-month period.

Purchase within period: This is where a proportion of the required volume for each 6 month period is purchased prior to delivery. The remainder is then purchased within this period. A reference price is set at the beginning of the supply period

Flex set and reset: This allows customers to purchase a proportion of the required volume prior to delivery for each 6 month supply period with budget limits agreed in advance. The remainder is then purchased within this period. This option facilitates the sell back of volume in the event the market falls, and the volume can be bought back at a lower price prior to the point of use. 

What are the benefits of using eEnergy’s basket procurement?

There are many benefits to using eEnergy’s basket procurement, such as…

Purchasing power: By pooling your energy consumption with other businesses, you will have the purchasing power of a large corporate.

Maximising value: Our experts will take advantage of any opportunities should the market commodity prices fall.

Budget certainty: Our team will agree on price caps with you and ensure they are implemented to give you budget certainty

Transparent pricing: Our online portal gives you transparency of your pricing 24/7, including non-commodity costs.

Risk management: Our team will manage your exposure in a volatile market through our risk management trading strategies.

Save time: We will proactively management your procurement contracts, giving you more time to focus on growing your business.

Why eEnergy?

Over the last two decades we have helped thousands of business procure energy at the lowest possible cost. Our basket procurement options give businesses with lower energy consumption profiles access to better energy prices through the power of bulk buying.

To find out more about how we can help you, please reach out to us on 020 3813 1550 or email us at [email protected]

 

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