A proactive electricity procurement plan is essential for controlling expenses and avoiding unexpected increases that might harm your company’s gross income. Creating the best strategy necessitates comprehending the many energy industry segments and how they relate to your company. The stages in this tutorial will help you create a solid plan for electricity procurement.
Table of Contents
Step One: Analyze Your Situation
This important phase consists of multiple parts. You must comprehend the following elements before you can begin creating your plan:
• Budgeting needs
Sometimes how much you spend and when you spend it might be equally significant. You frequently have alternatives when it comes to purchasing energy that will optimize overall savings. If you can’t afford a month or season, a fixed-price contract could provide the most stability.
• Future plans
Make sure your future goals are taken into account when making today’s energy purchase selections because they will have an impact on your company for months or years to come. Consider if you want to expand your company, open new locations, buy energy-intensive equipment, or make other changes that will have a big influence on your energy usage.
• Usage patterns
You can choose the best course of action by understanding the trends in your energy consumption. An effective tool is an energy audit. It will provide you with more specific information about your energy usage than what is seen on your monthly energy bills.
Step Two: Establish Priorities
What aspect of energy is most vital for your business? You’ll probably include the expense somewhere on your list. Predictability of the budget, environmental issues, supplier reliability, flexibility, and other aspects crucial to your business operations and future may also be considered. You may align the procurement objectives with each item on your list by keeping these priorities in mind.
Step Three: Create Measurable Indicators
Setting quantifiable objectives to monitor your progress can help you achieve your priorities, which you may define. The measure for “environmental sustainability” on your priority list can be a 10% cut in carbon emissions over the next year or the use of at least 25% renewable energy by the end of the next fiscal year. You can better define your success if you are aware of the solutions.
Step Four: Determine Your Market Approach
If budget stability is high on your priority list, you can look for energy contracts that have a set price element and a longer-term contract. You could seek plans that enable you to specify a minimum percentage of the energy sources that must be renewable in order to meet your renewable energy consumption objective.
Step Five: Perform Ongoing Evaluation
After implementation, your procurement plan remains in effect. To make sure you are on track to achieve your goals, it is essential that you assess your energy consumption. Your requirements could also alter as your operations change. Periodic reviews of your energy procurement strategy, similar to how you would evaluate other business choices, will guarantee that your plan is updated to reflect changes in your company.