Rising energy prices and the need to reduce environmental impacts are pushing organisations and companies to procure electricity in a cost-effective and sustainable way.
We set out the key points to consider when preparing for electricity procurement. A precise and well-planned procurement enables both cost optimisation and a sustainable energy solution.
When procuring fixed-price electricity, note the following:
- A fixed electricity price provides security against the volatility of the electricity market and is especially recommended for companies that cannot schedule their consumption to hours with lower prices.
- In the case of a fixed-price electricity contract, the customer is subject to a consumption corridor. This means that steady consumption is important. A significant decrease or increase in consumption during the validity period of the contract must be coordinated with the electricity supplier.
- Procuring fixed-price electricity can be procedurally more complex. The time period from opening of the tenders to concluding the contract should be minimal. A shorter period helps secure the best possible price, without including the margin for associated risks.
- A shorter payment term ensures a lower energy price. It is recommended to set the payment term in the contract to 5 days after the invoice is issued by the electricity supplier, 14 days is standard.
- The recommended period for fixing the electricity price is spring to summer when the market allows for the lowest price fixing.
- Fixed-price contracts incur contract termination fees if exited prematurely.
When procuring electricity at exchange price, note the following:
- The exchange price is primarily suitable for those who can schedule their consumption to more affordable hours. It is especially suitable for those who also produce their own electricity (for example, with solar panels).
- Exiting an exchange price package is simpler and does not incur additional fees.
- With an exchange price procurement, you determine the margin, or the electricity supplier’s service fee, for the fixed period.
Combined electricity package
Some companies also request a quote for a combined electricity package, which includes both fixed-price and exchange price electricity. Such an offer includes a fixed-price component, so it is advisable to keep in mind the recommendations applicable to procuring fixed-price electricity.
If you have any questions, please contact us through our website. If you already have an account manager at Enefit, they will be happy to assist you with any electricity-related questions.
