Most businesses are aware that there are opportunities to reduce the amount they spend on energy, making savings through a combination of energy efficiency measures and also the right procurement strategy.
However, many businesses also suffer from insufficient internal resource and expertise to manage this complex area as efficiently as possible. If you’re unsure using the services of an energy advisor, we have documented 5 reasons that why working with a trusted advisor could be in your best interest.
1. You want to have specialist expertise
Chances are, your organisation is already working with trusted advisors in other parts of the business, such as IT, marketing and accounts. You do this because undertaking those tasks in-house requires skill, time and expertise that you may not have.
And why shouldn’t you treat the process of energy procurement in the same way? If the responsibility for securing your next energy contract is left to be managed in-house, finding the right contract structure for your future needs and your risk profile may be unmanageable without market intel, experience and resource.
2. You need to look at energy cost management strategically
Managing your business energy is just about finding the cheapest energy contract, right?
Not quite. But internal resource constraints may mean that you're less likely to view energy strategically than if you work with an external advisor.
Energy advisors can do more than just securing your next contract. They’ll help you to take a strategic view of how your organisation uses energy; considering the future business requirements, opportunities for optimisation within the complexity of your organisation and its appetite for risk.
They do this by compiling the data they gather about your business and approaching the supply market on your behalf. They’ll guide you towards the best time to buy, based on drivers in the wholesale market and liaise with energy suppliers to negotiate prices and contractual terms for your organisation.
3. You want to reduce your consumption as well as costs
The energy market is volatile, and for businesses to remain profitable, it’s vital they keep their gas and electricity costs down.
By sourcing the next energy contract yourself, you may be inclined to look for contracts where you’ll spend less. Energy advisors will take a different approach; they’ll also see if you can use less and help you to manage your energy consumption during peak periods. If you work with a consultancy that offers a suite of energy management services, you’ll be well positioned to initiate projects to reduce and manage consumption to support your cost reduction strategy.
By highlighting inefficiencies within the business and cross-referencing times of high energy consumption against supply costs, an advisor can help provide an integrated approach that will enable you to lower your business utility bills.
4. The complexities of the energy market and contract types are overwhelming
Energy advisors are often better placed to assess which of the thirty-plus supply companies that provide the UK’s energy is bested suited to provide contracts for your needs..
With some energy suppliers offering electricity only and others opting for natural gas (and not to mention the increasing range of tariffs available), picking a supplier that has the right expertise and requirements for your business can be a near impossible task.
Getting the timing right is imperative too. Choose what looks like the best energy deal at a time when the wholesale market is about to crash, and the difference could run into thousands of pounds.
5. Supplier management is time-consuming
The energy procurement process continues long after you’ve sourced the best contract; energy suppliers need constant liaison and management to ensure that you’re being charged the right amount for the energy you use.
Bill discrepancies can arise, and energy advisors with a bureau function will have the time and expertise required to resolve disputes on your behalf.
Nothing is stopping you procuring your business energy contract in-house. But as we’ve demonstrated in this post, the advantages of working with an energy advisor are compelling.