E&C energy contracting helps you identify the best offer

How do you organize your energy contracting?

Every company (and every household) needs an energy contract. Therefore, energy suppliers are offer-producing machines. This means that in a request-for-quotes you need the right approach to get the best out of the suppliers’ arsenal of contractual options. When offers come in, they can be worded quite differently. Are you sure you’re interpreting all of the elements correctly?

  • Price, or rather, add-on cost,

  • Impact on total cost of how non-commodity cost is settled,

  • Whether the contract type fits your needs,

  • The quality of the price management services that are offered,

  • The volume conditions and whether they constitute a price risk,

  • Payment conditions and bank guarantees,

  • Complementary services such as online portals, details of meter readings, energy efficiency services, etc.

Are you confident you have the right in-depth insight into the energy business? If so, are you sure you couldn’t benefit from a second, expert opinion? Isn’t it better to outsource energy supply contracting to experienced professionals so that you can focus on taking decisions?

Energy contracting

When energy markets were liberalized, many buyers thought that the biggest change would be felt in energy contracting. However, with deregulation came the commoditization of the energy business. Your decision to buy energy from supplier A, B or C has much less of an impact on how much you pay than your price management decisions or the evolution of regulated price components.

As markets mature, energy contract types move from one-shot fix price contracts to contracts with fixed percentages of the expected annual volumes (load-following). The next step is contracts with spot indexation and price fixations through buying and selling of capacity blocks. In many markets, such contracts mean that you get an excellent service for a very low price. In some cases, you might decide to opt for a simple spot contract for your physical supply and execute energy trading yourself or through the services of a third party.

In any case, there is an energy contract proposal out there that is best suited to your needs. Beware that all that glitters is not gold. That offer that comes with the lowest add-on cost on top of the wholesale value may not look as good upon closer inspection. Are you sure that it doesn’t come with hidden costs due to restrictive volume or payment conditions? On top of this, some contracts will fit your energy pricing needs and risk management needs better than others. What do you expect from your energy supplier?

E&C supports your energy contracting activities

E&C conducts hundreds of request-for-quotes each year in many different countries. We help our customers secure the best possible offers thanks to:

  • Our passion for energy markets - we are committed to knowing all its ins and outs. For instance, knowing how an energy company hedges in the wholesale markets helps us formulate the right price & risk management services for our customers. Knowing how portfolio effect works helps us secure the right volume conditions. And knowing about payment risks allows us to be realistic about payment terms.

  • Our firm methodology - that we apply. Knowing when to ask for which concessions determines whether you obtain them and at what price.

  • Our independence - E&C’s code-of-conduct with energy suppliers sets the highest standard of independence. This is the cornerstone of our commitment to our customers: we never take commissions from energy suppliers. We strictly work for energy buyers, not energy suppliers. When you work with E&C, you can be 100% sure that we have only one interest in mind: guiding you towards the best possible energy contract.

  • Our transparency - E&C’s energy contracting services are not a black box. We encourage suppliers to send every piece of information both to us, and to you, the customer. We perform our analyses in spreadsheets that are shared with you without deleting any formulas. We are there to analyze and summarize information for you, not to monopolize it.

  • Our inclusive peer to peer approach - to energy consulting. Energy supply contracting is an activity that we perform together. We will reduce your workload by taking care of all practical issues. That said, we’ll keep you informed of all the steps along the way, and you’ll be the one to call the shots.

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