Customised Energy Procurement for Every Need

Flexible energy procurement involves tracking the wholesale market, allowing you to purchase energy when the costs are low while holding off during price surges. As a result, you can spread price risk throughout the duration of your contract by matching your purchasing plan with movements in the market, rather than working against them. By doing so, you can significantly reduce your energy expenses, as long as you implement the right strategy for risk management as well as the most suitable model for your purchasing (e.g. seasonal or advance-month deals). To develop and maximise the right strategy for a flexible approach, OFGEM recommends that businesses partner with energy specialists to make the right purchases at the right time. That’s where we at Northern Gas and Power come in.

How Does Flexible Energy Buying Work?

Our Head of Energy Trading and Strategy, Latif Faiyaz, provides his insights on flexible energy purchasing in the video below.

 

 

Why Buy Flexibly?

In a market governed by unpredictability, traditional fixed contracts may seem like the safe, predictable option. However, what if prices start to decrease while you’re locked into your current agreement? You’d still be obligated to pay what you had agreed to earlier, despite the lower available costs that arose in the meantime.  

This is why more and more businesses are starting to opt for a flexible approach. Instead of sticking to a potentially high-cost contract until it ends, flexible agreements allow you to purchase energy in smaller increments and lock in wholesale costs for shorter periods when necessary.

Flex vs Fixed: Which Is Right for Me?

Organisations which tend to be more predictable in their energy consumption tend to find fixed energy contracts more beneficial in the long run. This also goes for small startups and SMEs with limited financial resources, as well as businesses with limited risk appetite or long-term strategic planning. 

On the other hand, companies that fall within energy-intensive industries (such as data centres or heavy manufacturing) are primed to take advantage of flexible contracts by capitalising on market fluctuations.  

Moreover, if your organisation is equipped to manage risks and varies seasonally in terms of energy demands, purchasing energy through a flexible model can even help you reach your environmental sustainability goals by encouraging energy efficiency measures and managing peak demands effectively.