We have adopted a flexible purchasing strategy which we use to procure the energy requirements for over 1,500 customer and around 22,000 supplies, so we must be doing something right! Here, you can find out all about the strategy, how it works and how it can benefit you.
What is a Flexible Purchasing Strategy?
Simply put, a flexible purchasing strategy is ESPO aggregating the amount of energy that our customers need to gain purchasing power and to make multiple trades over 12-18month period to manage the risk.
How does a Flexible Purchasing Strategy work?
Our Energy Trading team purchase energy up to 18 months in advance of the supply period, buying little and often to avoid peaks and troughs in the market to manage the risk and follow the market curve. The objective is to have purchased 100% of the basket before the supply period at below the market average for that period. The costs are then fixed for the following 12 month supply period. On the anniversary of the framework customers will receive a price change notification for the next 12 month supply period.
How does a Flexible Purchasing Strategy save you money?
By purchasing energy in advance and spreading the risk over a longer time period, there is a smoothing effect on annual price, helping to avoid extreme cost variations. This means that we can consistently purchase energy at advantageous prices, allowing us to pass the savings onto you.
Do you have other options?
We understand that flexible purchasing might not be right for every organisation and therefore we have other solutions available. Please don’t hesitate to get in touch with our team to discuss your individual requirements.
Let ESPO support you
Watch our short video to find out more about how our experts can help with your energy procurement.
For general enquires or further support please contact our Energy team on 0116 294 4040 or email@example.com.