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We are a lean, super smart energy procurement consultancy, developed by our founding CEO to help 'smaller-than very large' organisations benefit from strategies that very large entities use to get great pricing.  For our CEO's bio click here.

'Smaller-than very large' is the terminology we use to describe the size of organisations we typically can help, as follows:

We serve SME-sized organisations to mid-range corporates who are spending over £50k/annum on energy, and who do not have the kind of specialist in-house energy procurement function that some very large energy consumers use to employ sophisticated approaches to gain access the 'best' pricing available.

We leverage our portfolio's buying power and through powerful strategic relationships make top tier energy procurement available to 'smaller-than very' large clients.

We're a 'smart procurement' energy consultancy who interfaces with the 'complex wholesale energy markets' on behalf of clients who would otherwise struggle to access or manage this type of sophisticated approach and extract optimal benefits.

For example, Energy-Smarts provide 'smaller-than-very-large' organisations with sophisticated energy procurement solutions that
risk-manage electricity and gas contract pricing and optimise it over a long term strategy.  Now that's smarts!

Since 'The Great Recession' we have been helping clients get smart about their energy, delivering a service offering including: appraising, installing, delivering and optimising smart strategies for clients.  Through our contracted network of industry experts we have decades of experience close at hand to deliver a full spectrum of smart energy services.

Our focus is helping privately owned or charity sector organisations, including SME-sized to mid-range companies and institutions who can't rely on specialist in-house procurement functions to optimise energy pricing.

Most of our clients have a multi-site portfolio and typically will have an energy spend between £50-250k, but our capability caters for clients with very large expenditures which run into tens of million, but who do not have in-house capability.

Note: We work with certain public sector organisations e.g. Multi-academy trusts that require an OJEU compliant approach.

Typical clients might be in the following sectors: Charity - we love helping charities get smart about energy; Educational: multi-academy trusts - ditto; private colleges and schools; Commercial Property companies; Community & local facility operators; Health & Care: e.g. 'Small' privately owned chains of care homes or hospitals; Hotels - ditto.

We love to help the type of organisation that has a small stretched team handling respectively large property portfolios and energy spends, who find energy renewals and spend a constant challenge - but don't have the time, knowledge or resource to get smart with energy procurement on your own.  We can take away that pain.

Our clients see us as a valued strategic partner / service provider fulfilling a critical area of procurement for their organisations.

We typically help busy senior executives and managers who see the value of our smart type of 'best practice' procurement - but don't have the time or resources in-house to implement this and want a strategic partner or service provider providing a smart access that's super easy and low cost set up and run.

Many find the the whole process of dealing with electricity and gas contracts a real headache and really appreciate having a safe pair of hands to deal with this complex category in a smart way.

One client said, and we paraphrase: "you're like gold dust - there's no way I could handle all this without you."

You can see some glowing recommendations on this website and on Linkedin, speaking of multiple benefits and real savings of over 20% against trends of increasing underlying costs and market conditions.

Yes, in our online Energy Procurement Masterclass we review how top tier energy procurement functions operate and derive best practice principles.  We employ these same principles in the operation of our services in a manner appropriate to our clients, so clients achieve the Pareto's Law effect of 80% benefits for 20% of the effort.

Our service includes: A risk profile and policy checking process; a risk profile to strategy mapping process; flexible risk-managed wholesale procurement; optimisation of certain other costs through the service; copy invoice validation; annual pricing reporting with costs compared to previous year's pricing; annual performance reporting for governance, strategy review purposes and optimisation purposes.

Energy-Smarts model is to take ideas from sophisticated energy procurement functions, that are typically very difficult to emulate on a smaller scale and make them available to organisations that are unable to have these types of resources in-house.
 
“This is, in fact, the type of procurement I’ve spent 30 years focussed on achieving for very large companies, and how smart it was (is) to make this accessible to small and medium sized enterprises.” Steve Mullins (FCIPS).

As we show in our online Energy Procurement Masterclass - Your energy price can change by as much as 25% or more during your contract period due to changes in the (wholesale) energy markets - which contributes the largest component of final price.

When you secure your contracts your price is made up of the wholesale price plus various non-commodity costs built together into your final price. This represents 90% or more of your final price and there may be very limited scope to change these costs during your renewal period unless the market is very volatile, which presents different challenges.

This means your only real 'wiggle-room' on price at any fixed point in time is in relation to supplier (and broker) margin, which is relatively small, by comparison.

We show in our masterclass how you can effectively tackle the major component of cost as well as address certain other elements - and deal effectively with supplier margin too!

We outline this in detail in our online Energy Procurement Masterclass where we outline our smart risk-managed approach to procuring the wholesale energy through a professional energy trading team.

The process can last for a number of years and it is advisable to run for at least 1 year.  A typical strategy would be to hedge the market at the start of the process so the portfolio price falls with the market and 'locks out' pricing if the market rises and breaches a certain tolerance.  There is also flexibility built into the strategy to enable us to improve on the price position during the trading window using sophisticated trading tools and techniques, given certain market conditions. 

Some strategies benefit from an element of buying closer to the delivery date, in order to take advantage of lower risk premiums - but this must be very carefully risk-managed with respect to the high risk element that short term volatility and limited trading windows present.

If required, we can set up a 'fixed price' strategy to find a favourable price during a shorter window, e.g. 6 months or less, which can add value over and above the standard approaches.

Yes our service is a full outsourced service - where you can be as involved and informed as you wish to be, until you are comfortable your affairs are being managed professionally and expertly.

Our service requires delegated authority to procure energy contracts which enables the professional trading team to secure pricing in real-time when favourable opportunities occur.

For many this comes as a welcome relief - to be released from the burden of handling the whole headache surrounding contract renewals.

Others need reassurance that they are authorising category experts and a professional energy trading team to secure pricing according to a strict pre-defined risk-managed strategy that seeks to secure pricing at favourable times and achieve best value with respect to risk and market conditions. 

This process performs at 90%+ decision making accuracy and so, of course, is far superior to non-specialist approach.

We are proud to be working with an award winning team of analysts and professional energy traders.  The team fulfil fundamental and technical analysis using cutting edge tools and techniques, and by skillfully analysing multiple feeds of market intel that cover the different drivers of energy prices are able to perform at over 90% decision making accuracy.

The trading strategy adheres to a strict risk-management strategy which is defined in advance on the basis of a client's needs and reviewed annually.

When 'buying' wholesale we complete our supplier tender process as a separate exercise, so suppliers are pre-appointed.  

If and when we do source prices directly from suppliers we have access to a wide market coverage if required.  Nevertheless our strategy points to a better way to do things with pre-appointed suppliers on favourable terms, so this is rarely needed.

In our online Energy Procurement Masterclass, we talk about the value of providing comparables, which we feel is very limited - because, in and of itself, it does not address the main components of cost, it simply tends to outline the spread of supplier and broker margin, built on the majority of unchanged costs.

Your electricity and gas prices can change by as much as 25% or more during your contract period due to changes in the wholesale energy market which contributes the largest component of final price.

Through smart risk-management you can protect against volatility and optimise your price effectively. Failure to risk-manage means about half your annual energy spend of every future (non-contracted) year is subject to a highly volatile commodity market.

We believe that failing to risk-manage this component of cost is entirely unsatisfactory and would not knowingly be acceptable by any procurement professional in any other category of procurement knowingly.  

As its one of your largest costs, can you afford not to risk manage energy prices?

Flexible procurement strategies enable you to continue to secure pricing exactly when you wish to, without delay and also provide the framework to incrementally improve your price.  In this way, you can avoid losing new opportunities that occur right up until the point you need to fix your pricing, which is usually required at some stage before the contract start date for budgeting or operational purposes.

Certain risk-managed strategies not only enable you to zero in on favourable times to buy, but also allow you to continue to eke out savings and avoid missing opportunities through the trading process - right up until the point you need to fix your pricing for budgeting or operational purposes.  This is one reason why a 3-year long trading windows can be as much as 16% more effective than 1 year.

Yes.  We can place a 'cap' on the market to trigger the energy to be bought if the market increases which protects you from increasing wholesale costs.  This helps to protect you from increasing markets, and coupled with smart strategies, helps to migitage the steady large increases coming onto electricity prices in non-commodity costs.

Yes. We employ various off-site methods to help manage, reduce and optimise them where possible.  These can create costs savings that complement the benefits of risk-managed procurement and dovetail with your energy management strategy.

To be clear - energy procurement is our specialism - however through our powerful contracted relationships we can provide a full spectrum of energy services including energy management.  We help clients gain preferential terms by working with one of the largest consultancies in the UK to achieve this.

Note: If you're working with an energy management specialist and using the same company for energy procurement - you may find the strategy is not as smart as it could be.  Are you renewing at contract end?  If so there's a smarter way.

To be clear - energy procurement is our specialism - however through our powerful contracted relationships we can provide a full spectrum of energy services including energy management.  We help clients gain preferential terms by working with one of the largest consultancies in the UK to achieve this.

If you need help with compliance based service; energy asset management; energy management; and so on - please talk to us about your needs. We can help.

 

On average 1 in 5 energy bills are incorrect - as part of our energy procurement agreement we keep a close eye on them through copy invoice validation - to help minimise the risk of being overcharged and to correct issues that occur in your invoicing.

In a nutshell we care about helping you get the kind of benefits you would only typically get if you are a very large organisation - whereas many energy brokers seem only to be interested in renewing your contract at contract end and taking their commission.

We take ideas from very large sophisticated energy procurement and apply it to organisations that would typically struggle to access or manage these  approaches, all packaged in an easy and accessible manner with a low-cost of entry.

Generally, we do not provide a quotation service as such, as we do not believe this represents good practice procurement. When we source contracts according to traditional means - i.e. through suppliers - for alignment and rationalisation purposes, we look for market opportunities and transfer clients to suppliers who operate our baskets.

See 'What's wrong with standard renewal based pricing?' above.

We will not end your contract early, but we can begin to align and rationalise your affairs, as well as procure energy for your next contract - sometimes well in advance - in order to help you secure pricing when the market is most favourable.

It is actually beneficial to our approach that you are in contracts, but if you are already at renewal we can help you get set up quickly to position yourself forself for risk-managed wholesale procurement.

We are currently procuring contracts as far as 2025 to risk-manage and optimise prices between now and then - so even if your contract end is 3 years away - we would recommend setting up your arrangements as early as possible for maximum advantage.

E.g. 3 years trading is typically 16% more effective than 1 years trading.

Clients often think, because they are in contracts, that their budgets are safe - or that they don't have to do anything yet.  This is one of the most problematic mindsets that holds them back from smarter approaches.

For more information on this, consider our online Energy Procurement Masterclass where we cover many false perceptions that may hold you back.

In brief because it contributes t0 up to half* of your electricity and gas prices.  For more info see other FAQs, and for the fullest answer join our online Energy Procurement Masterclass.

*The exact amount varies across electricity and gas, and in relation to the proportionate use thereof.

At the time of writing, on average, wholesale electricity relates to about 35%, and wholesale gas to about 65% of the respective 'final' contract prices.

In brief, because this approach fails to manage the intense risk presented by the volatile energy commodity markets that heavily contribute to your final pricing. 

By way of example, the variation in gas wholesale prices between the time of writing and the previous peak (18 months prior) is about 3 times!  Electricity was almost 2 times!  We fully expect this to revert at some stage, and this will be built into future energy contract pricing.

Can you afford to take this kind of risk with energy prices if they represent one of your largest operating costs?

Yes.  See 'How do you 'optimise' energy prices?' above.

Yes.  We can set up a risk-managed strategy that not only protects you from peaks in the market using a 'dynamic cap' but also allows optimisation of price as market conditions allow - all under the expert guidance of our professional trading team.

Yes. Unless you have a very large spend, you will benefit most from our smart outsourced energy procurement service, where everything is built into our process.

If you have a large energy spend and need some consultancy on a limited basis to support with some complex issues or in developing your energy procurement strategy, we can help - just get in touch.

Our online Energy Procurement Masterclass will help you get all the knowledge you need to inform your strategy development.

Our key message is about helping you access a suitably risk-managed approach and optimise your energy pricing.

We do this by aligning your portolio with ours, giving you enough leverage to be treated like a large energy consumer through our smart approach.

This also provides econonomies of scale and through the process rationalises your affairs, reduces our administrative burden around the contracting process, as well as fulfils extra value adds such as optimising other contributing costs  and related processes.

Our clients see us a strategic partner / service provider fulfilling a critical area of procurement for their organisations.

We cannot predict future energy prices - and anyone who does should be treated with the appropriate scepticism.  Also, we do not know how much you are paying - or what the future energy markets will present.

Nevertheless, in testimonials on this website you will see clients speaking in real terms about double digit percentage cost savings.

Although we cannot predict future pricing, our performance graphs each year regularly show significant reductions from the various benchmarks that we track, including price at start of trading, market peaks over the trading period and market averages. 

Our performance against these KPIs regularly perform in the region of 10-40% reductions, and in our online Energy Procurement Masterclass we look at our historical trading performance in this range - which is commensurate with the professional energy trading team's 90%+ decision making accuracy.

Finally each year we provide a comparison against the previous year's contract pricing, which helps to see how everything balances with respect to increasing non-commodity and volatile wholesale prices.

If you want to really get down to the nuts and bolts of it why not consider our online Energy Procurement Masterclass, which includes an exclusive Special Offer on how we engage with you.

Our online Energy Procurement Masterclass beta version is currently available on special offer, to help organisations in the recovery from the coronavirus situation.

You will also gain a further special offer of help for your organisation to gain everything we've outlined, with certain special terms to make it easy to progress.

If you're already ready to process, the first step in the process would be an Energy Review.  You would just need to start gathering your energy documents together and contact us for more details.

If we haven't answered your question above, do submit it through the form below and we will get back to you as soon as possible.

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