Energy 101: What is Energy Procurement?

A basic question but to successfully navigate the energy market can be a complex answer.

Simply put, energy procurement is the process of sourcing and acquiring electric and natural gas for your businesses.

A number of factors determine your price – natural gas, weather, capacity, transmission costs, and the list goes on. It is important to always work with a trusted Energy Advisor to help you effectively manage your energy costs. 

Below are a few components to consider when procuring energy for your business.

What is your strategy?

Clearly define your energy procurement Strategy. Are you looking for the most competitive pricing? Or is a more risk adverse strategy a better fit for your business? Maybe you’re looking for more sustainable energy options?

Whatever it is BPE works alongside your business to understand your operations, needs, and budgets for an optimal energy strategy.  

Every industry is different and, as energy brokers, we understand how to adapt energy management strategies to the needs and goals of each. 

Market Knowledge

It’s extremely important to understand how the energy markets operate –  supply and demand dynamics, pricing mechanisms, and regulatory factors all have an influence. 

Energy Usage: 

A look into your business’ historical energy usage helps to gain more perspective of your energy consumption. With historical information you can identify peak demand periods, seasonal variations, and any inefficiencies that can be addressed to optimize energy use.

Supplier Analysis: 

At BPE we work with the top energy suppliers in the industry and work alongside you to evaluate pricing, contract terms, reliability, and more.

Contract Types: 

Fixed-rate contracts, index-based contracts, block and index contracts and more. Each contract has its advantages and risks to consider.

Market Timing

Energy Markets can be volatile for a number of reasons such as weather conditions, supply and demand, and geopolitical events. Our Energy Advisor’s keep you up to date on the market and identify opportunities to purchase energy when prices are lower. We’ve seen this strategy significantly reduce energy costs over time.

With Best Practice Energy you have a team of energy veterans working closely with your business to make informed, data driven decisions to secure the most cost-effective and reliable energy supply.  

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