This guide offers an overview of the energy procurement process and principles for best practice. Energy procurement is a complex process and the outputs of this activity directly influence the cost of energy to the organisation, hence a critical activity that needs to be managed appropriately.
We all want to know what the best procurement strategy is for the organisation, and the focus is usually on energy price, but the truth is that unless one is consistently buying daily spot prices over a period of time, a best price is near impossible to achieve. Energy purchasing is not just about price, but about getting the best fit for the organisation, one that not only delivers value but also fits within and supports the company’s strategy and risk management requirements. Negotiating the right contractual terms and knowing how to optimise all the inputs into the procurement process is also key.