Procurement: Contract Negotiation & Architecture
Detailed financial and consumption profiling provides the insights we require to negotiate contracts from a position of confidence and strength. We are also one of the largest volume buyers of energy in the UK on behalf of a select profile to include a high net worth of corporate clients. In addition to these powerful commercial levers, we place great stock in developing the long-standing relationships we have with all suppliers and encourage our customers to do the same.
Our expertise in matching, or even developing a bespoke contract type depending upon our clients’ risk appetite is second to none.
“Our approach to procurement and contract management is unique.”
We are best known in the energy market for being the owner and operator of T.E.C.C® (The Energy Credit Consortium), which we believe is the most powerful energy procurement platform in Europe and includes some of the largest and well-known brands in the world.
Electricity, Gas and Water procurement
Our consortium, TECC, provides A+ credit rated businesses with a more commercial solution.
Logical Utilities launched TECC in June 2012 due to the growing number of larger corporate enterprises becoming dis-enfranchised with more standard energy procurement ‘basket’ deals. It is a misconception that volume (or usage) is a critical factor in determining the cost of an energy contract. The science behind TECC allows us to come back from the market with a more competitive deal for our clients.
If you would like to find out more, please get in touch.
Contract types, and the best one for your business
Our procurement team establishes the best deal by using key pointers to develop bespoke buying strategies before going to the market. By ensuring we know your business as well as you do, we are able to go to market with confidence and create contracts based on your business’s key performance indicators.
Fixed contracts provide stable, simplistic costing strategies, and budgets can be consistently assured with your monthly bill consisting of the same yield each month
However, there are many downfalls of fixing a contract. They often work out very expensive due to suppliers benchmarking at a higher rate across a fixed period of time, and you’ll only have one opportunity to buy your energy at the start of the contract; you will not be able to benefit from any reduction in wholesale cost during the duration of your contract.
Fixed contracts are suitable if you have a small business with a single meter and are looking for a secure budgeting strategy to fall in-line with your business’s KPI’s.
Hybrid contracts provide a combination of both fixed and flexible type contracts, typically a 50:50 split. This means you benefit from the stability of a fixed contract, as well as having the ability to buy in the remaining 50% when the market shows a decrease in wholesale movements. This can be done in advance so you’re able to take advantage of the market decreases.
Hybrid contracts do have an element of risk involved, meaning you could end up paying more if the market moves in a bullish direction.
Our in-house team of Traders and Risk Management gurus will ensure you are locking in at the right moment giving you the best prices on offer.
Hybrid contacts are suitable if you have a SME or large business.
Flexible contracts provide you with complete freedom and control on purchasing your energy. With a flexible contract you don’t have to purchase all of your energy at once, and you have the freedom to be selective on when you buy your energy. For example, you can purchase your energy for months in advance ignoring more current periods if we believe the immediate market will go down. Our team of Traders and Risk Management Analysts will be able to buy your energy in months, quarters or seasons, in and out of sequence, maintaining control of your costs.
Due to the nature of a fully flexible contract, there are a number of risks to look at before settling with this option, for example, your monthly invoice will vary due to fluctuations in the market meaning you could end up paying more than you’ve forecast to spend.
Fully flexible contracts are suited to larger business of around 30GWh+ consumption per year.
For more information on contract types
Or if you would like to discuss your energy procurement processes with us, please get in touch and one of our dedicated consultants will get back to you.
We are Agents of Change
Founded in 2009 we have become the UK market leaders in energy consulting and support services specialising in multi-site and large commercial business sectors. We operate in a highly fragmented market where most providers concentrate on what they do and how they do it. Our success is attributed to our focus on “why” we do what we do; we challenge the status quo in the energy market. We believe we can improve a clients’ bottom line whilst removing highly complex tasks associated with energy from within their facilities and finance departments, and we are driven by sharing in this success.
“We consider the structure of the energy market to be illogical”
We have become standard bearers for a more logical and transparent approach. Logic is applied in everything we do and remains the backbone of our success. We have attracted and grown a specialist team of ethical, and talented industry professionals motivated by achieving fantastic results for some amazing customers and pushing the boundaries of what is perceived possible.