Although prices are dropping, energy bills are still at least 50% higher than what was considered “normal” just a few years ago.
As the market continues to be volatile, businesses should prioritise ways to cut the cost of their bills. Flexible energy purchasing is becoming an increasingly popular choice for businesses with large energy usage.
Flexible energy purchasing involves purchasing energy across the wholesale market from a variety of suppliers and sources at different times of the year.
Traditionally, many businesses will have taken out fixed energy contracts instead. You can find out more about the differences between fixed energy purchasing and flexible energy purchasing, to decide which is the best fit for you, in this detailed blog post.
Here are a few of the key benefits that flexible energy purchasing has for businesses with large energy usage.
Flexible energy purchasing helps you save money
Let’s start with the most crucial point for businesses with large energy usage; flexible energy purchasing can help cut your costs.
With a flexible energy purchasing strategy, instead of securing all of your energy at a fixed cost at the beginning of your contract, you purchase energy at multiple points across the wholesale market.
This means that if the market is monitored closely, you can take advantage of any dips and secure your energy at a lower cost per unit. For companies with large energy usage, this will save you substantial amounts of money in the long term.
Additionally, rather than being hit with a significant price increase when your fixed contract comes to an end, you can protect your budget and keep more control over your energy spending.
You may even end up making money from flexible energy purchasing! If you have unused energy left at the end of your contract, you can sell it back when the market rates are in your favour.
Flexible energy purchasing is tailored to your business
Every business has different requirements when it comes to an energy purchasing strategy. This is why the traditional ‘one-size-fits-all’ fixed energy purchasing approach may not be suitable for you.
When you choose a flexible energy purchasing strategy, your brokerage partner will help to create a tailored plan that matches up to exactly what you need.
By taking a more targeted approach, you ensure that you aren’t spending any more money than you need to or purchasing more energy than is required across your business.
Flexible energy purchasing helps you manage market risk
Although you may have concerns about purchasing energy from a volatile market, flexible energy purchasing can help you manage market risk. You have the independence to buy energy at strategic times to secure the best deal, in line with your business’ tolerance to risk.
By taking on the risk yourself, you also avoid costly premiums and third-party charges that come when your suppliers take on the risk on your behalf.
Flexible energy purchasing helps you reach your Net Zero goals
As Net Zero becomes more of a priority, businesses of all sizes are striving to make changes to their energy consumption. For businesses with large energy usage, this should start with where you get your energy from.
With a flexible energy purchasing strategy, you can take advantage of any new renewable sources in the market as they arise.
You can also build Zero Carbon and 100% certified renewable options into your strategy from the beginning.
Flexible energy purchasing allows you to adapt your energy usage
Finally, as you won’t be buying all of your energy at once, flexible energy purchasing allows you to fluctuate the amount you purchase based on what your business needs. This means you could re-evaluate your energy usage and make adjustments to your strategy on a monthly, quarterly, or yearly basis should you wish to.
If you partner with us for your energy brokering service, you will receive a monthly energy performance report and regular market insights. Having such a tight grip on your usage allows you to pinpoint inefficiencies across your business and reduce your usage in other ways too.
In conclusion, adaptability, cost-effectiveness and energy efficiency are the main benefits of flexible energy purchasing for businesses with large energy usage.
We hope that this blog has helped you see that, when it comes to businesses with large energy usage, the benefits of flexible energy purchasing far outweigh any potential risk.
If you are interested in finding out more about how a tailored flexible energy purchasing strategy could benefit your business, we would love to help!
Utili-Tay has recently launched a Flexible energy purchasing service, which we’ve created to help businesses design a tariff that suits their individual needs.
Get in touch today to speak to one of our experts who will be happy to help guide through the process and answer any questions you may have about flexible energy purchasing.