COMMERCIAL ENERGY PROCUREMENT

Empower your business with strategic Energy Procurement

Maximise your resources and optimise your energy costs in a sustainable way.

Energy procurement can be complex and time consuming. There is an abundance of information available which in many cases only complicates the issue. That's why it's important to have professional advice to make the best decisions about commercial energy procurement. Digren Energy has helped more than 1,000 companies save on their energy bills, saving thousands of euros.

When you contact with us for a quote on your commercial energy deal, we’ll check prices and tariffs with all the major providers in the Republic of Ireland and the UK. In addition, to checking tariffs we analyse the bill to see where additional reductions can be achieved.

These savings can be significant. In many cases, there is no need to even change your existing provider. Our primary objective is to reduce your cost, but also to fix these costs from rising for a period of up to three years.

Even if you are in a current contract with a provider we can, in certain cases, advance buy your energy and have a provider issue a contract with a future start date.

Benefits of energy procurement for your business

Flexibility

Get rates customised to your needs, either through fixed or variable rates. Also lock in your variable rate at a time that suits you.

Budget planning

Know the cost of energy in advance for better cost planning. and make better business decisions.

Cost reduction

Get lower prices compared to market prices through comparing different suppliers.

Improve competitiveness

Maximise the competitiveness of your business with lower and more stable costs of your energy consumption.

Easy management

Leave your energy tariffs in the hands of professionals. We will take care of the complete management to obtain the best price with different distributors.

Understanding Energy Procurement for Business

What exactly is Commercial Energy Procurement?

Business energy procurement is the process by which a company chooses and signs a contract with an energy supplier to provide electricity, gas, or any other type of energy required for its operations.

This type of procurement is done with the aim of obtaining the best conditions and prices for energy supply, ensuring the necessary supply for the proper development of business activities.

In business electricity procurement, different aspects can be negotiated, such as the energy rates (whether variable or fixed), the contract term, the type of energy used, and other additional services offered by the supplier

Why Energy Procurement is Important?

Commercial energy procurement is a fundamental part of business because of its strong potential to optimise costs and maximise a company's competitiveness. This includes both large and small companies.

Energy procurement for commercial plays a key role in paying only for what is needed. Currently, there are many companies that overpay their rates, for example, companies are paying for higher consumption than what they actually spend.

Therefore, it is important to consider and know what energy requirements your company really needs. All companies have different energy requirements. For example, a small company does not have the same energy requirements as a large energy company.

Without the necessary knowledge of the available options in the market it is easy to make incorrect decisions which can directly affect the economic performance of your business, this is why we recommend to work closely with energy consultancies to have a personalised advice to your needs and make the best decision to optimise and maximise the economic performance of your company in short and long term.

Steps for Energy Procurement

Receive energy bills

The interested company sends its latest energy invoices to the consultancy.

Analyse the energy requirements of the company to avoid overpaying.

Analyse energy needs

Options & decision

Investigate energy supplier options and make the best decision

Signing, monitoring, maintenance of contracts and conditions

Procurement & maintenance

Energy Procurement as an essential part of a business

Ensuring stability and competitiveness

Commercial energy procurement is an essential part of any business that uses energy in its operations. By strategically procuring energy, businesses can secure the lowest price, reduce their energy supply risk and take advantage of energy supply opportunities.

With energy prices constantly fluctuating, businesses can use electricity procurement to ensure their prices stay competitive, reduce rising energy costs and smooth out costs over time. In addition, energy purchasing can be done to help businesses meet their sustainability goals by switching to renewable energy sources such as wind and solar.

Strategic business energy procurement may help businesses qualify for financial incentives and rebates when available in order to reduce their energy costs further.

Main objectives of energy procurement

Provide additional support to your overall strategic and business planning
Pair your requirements to relevant suppliers and energy options
Better control and risk management of your energy costs
Provide short, medium and long term analysis of fundamental and technical market drivers

The process is very simple and in general proposals can be generated within a couple of days. You’ve nothing to loose but potentially lots to gain.

What are the different kinds of energy procurement contracts for business?

Fixed Contracts

A fixed contract, also known as a fixed-term tariff, is a type of contract where the costs for energy units and standing charges remain consistent for a set period of time, typically between one and five years. Your monthly energy bills will still vary based on your usage, but you will not be affected by any changes in rates or charges during the duration of the contract.

Fixed contracts offer a sense of stability for businesses, protecting them from sudden price increases. However, if energy costs decrease during the contract, customers will not benefit from the lower rates. Once the contract expires, businesses can choose a new tariff that reflects current market rates.

Benefits of Fixed Contracts

Consistent energy costs throughout the duration of the contract
Protection from sudden price hikes
Budget certainty for businesses
Option to switch to a new tariff once the contract ends to take advantage of lower rates.

Disadvantages of Fixed Contracts

Energy costs may not reflect any decreases in market rates
Limited flexibility to change tariffs before the contract ends.

Blend and Extend Tariffs

In this type of agreement, the supplier extends the length of the contract in order to lower the cost for the customer. This is beneficial for those who signed up for an energy deal when rates were high, as it allows for long-term savings. The customer's contract rates are combined with the current market rates, resulting in a new, lower unit price for energy.

This rate is fixed and will be in effect for the duration of the extended contract, providing steady and reduced energy bills. Some suppliers are offering blend and extend contracts as a way to ease the burden of high energy bills for existing customers. However, not all businesses may benefit from this type of contract. It's important to understand the details of blend and extend contracts and determine if they can help you save money on energy bills.

Benefits of Blend and Extend Tariffs

Blends contract rates with current market rates to lower cost
Provides a fixed rate for the duration of the contract
Can help ease financial strains of high energy bills for existing customers

Disadvantages of Blend and Extend Tariffs

Not every business may benefit
Market rate fluctuations can impact savings
Potential for longer contract commitment.

Flex Approach Tariffs

This type of tariff is ideal for large businesses as it involves purchasing energy in bulk and in advance. With a flex approach tariff, businesses can purchase energy at wholesale rates for future months or even years.

This can be beneficial when rates are low, as buying in bulk at a lower cost can result in long-term savings. However, if a business is caught "out of contract" during a time when rates are significantly higher, they may not be able to continue purchasing energy in bulk and will need to reconsider their tariff type. Seeking the assistance of an energy broker can help businesses make the best decision to avoid this situation.

Benefits of Flex Approach Tariffs

Can result in long-term savings when rates are low
Suitable for larger businesses
Involves buying energy in bulk and in advance

Disadvantages of Flex Approach Tariffs

Rate fluctuations could impact savings
May need to reconsider tariff type if rates are significantly higher
Can be risky if caught "out of contract

Pass through tariffs

A pass-through tariff is a type of contract for businesses where the supplier charges for fixed, wholesale energy costs, unit rates, and other fees such as levies and tariffs. These charges may change multiple times a year, and the supplier directly passes these costs to the customer.

This type of tariff is suitable for businesses that have a deep understanding of their energy usage and are willing to accept some price variability. These are often large businesses with over 250 employees, although smaller businesses with high energy usage can also benefit from this option.

Benefits of Pass through tariffs

Charges are based on actual usage
Can be more cost-effective for businesses with high energy usage
Suitable for businesses that can afford some price variability
Can help businesses accurately track their energy costs
Provides transparency in billing for non-commodity costs.

Disadvantages of Pass through tariffs

Prices may fluctuate which can make budgeting difficult
Requires a thorough understanding of energy usage
Potential for increased costs if energy usage increases
Not suitable for businesses that require price certainty.

What make us different?

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Meter Profiling

We carry out a full analysis of your existing meter profile and assess if changes are needed. Using the Digren Energy algorithm we prepare a report for you outlining any proposed changes and how they would impact your bottom line.

Tariff Optimisation

Verification and review of your current energy tariff, where after analysis we present you the results and take the most optimal decision for the reduction of energy costs.

PSO Levy adjustment

The PSO levy is a controlled cost and is applied the same for each provider. This charge cannot be changed. However, it is calculated on consumption with set rates for different tariffs. If through the tariff optimisation we have made changes then we ensure these are passed on by adjusting the PSO levy to reflect the amended tariff.

Tendering of seasonal rates

We look at the rates available from the different providers. We look at the summer and winter rate as well as the night and day rate. We profile this through the Digren Energy algorithm in conjunction with your previous 12 months consumption to establish if the proposed rates work for you. We engage with different providers to find the one best suited to your business

Hedging Options

This applies to any of our large energy user clients. Gas dictates the cost electricity in Ireland. We monitor gas prices daily and provide support and advice to our clients. We can hedge the market with blocks of power adding additional savings. Our policy in regard to hedging is conservative and we have a clear understanding of what our client wants or expects to achieve

Brochure

5 Step Procurement Stratergy

See our brochure for detailed information and key steps for energy procurement.

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FAQ

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wondering...

What is an energy management company and what does it do?

An energy management company is a company in charge of providing services and solutions to improve energy efficiency and sustainability in buildings, industries or municipalities. Its goal is to optimise energy use and reduce costs through the implementation of technologies and measures that enable more efficient consumption. The activities and services that energy management companies can perform include: Energy audit: This consists of carrying out an exhaustive analysis of the energy installations and processes of a company or entity, in order to identify opportunities for improvement. Design and implementation of energy management systems: Responsible for developing and implementing a strategic plan for efficient energy management, setting clear objectives and targets and proposing measures and technologies to achieve them. Installation of measurement and monitoring systems: These systems allow real-time measurement of energy consumption and the detection of possible deviations or anomalies that may arise. Energy efficiency advice and consultancy: They guide companies on how to improve their energy efficiency and reduce their carbon footprint by adopting sustainable measures and technologies. Renewable energy implementation: Helping companies to integrate renewable energy sources into their processes, such as solar, wind or biomass, which helps to reduce their dependence on fossil fuels and reduce their greenhouse gas emissions. And much more
Why is it important to work with an energy management consulting?

Working with an energy management company can be beneficial for a company for several reasons: Cost reduction: An energy management company will analyse and optimise a company's energy use, which can result in a significant reduction in energy costs. Improved energy efficiency: The energy management company will help identify and correct possible inefficiencies in energy use, which in turn will help reduce consumption and costs. Compliance with regulations and standards: The energy management company is also responsible for ensuring that the company complies with regulations and standards related to energy use, avoiding potential fines and penalties. Reducing environmental impact: By improving energy efficiency and using renewable energy sources, the company can also reduce its environmental impact and contribute to sustainability.
Why Digren Energy?

Since 2012 we have been helping all business sectors and local authorities to save and manage their energy. Our approach is focused on reducing consumption, we achieve this through our personalised and continuous strategy over time, we do not limit ourselves to the first study, we will keep in touch with you to always offer you the best deal. As energy consulting firm, we work with companies to manage energy costs, ensuring the best energy solutions are found to reduce consumption.

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