How EIC Saved £100M for Clients with Flexible Energy Strategy EIC Partnership

EIC Partnership

How EIC Saved £100M for Clients with Flexible Energy Strategy

William Oliver
William Oliver

Head of Business Development Sales

Overview

A Graphic Presentation of Savings through Flexible Energy Procurement

In the UK, managing business energy costs efficiently can be as crucial as finding new avenues for revenue.

Over the past decade, EIC Partnership has delivered savings of over £100m to clients who chose budget protection trading strategies.

These achieved savings are in respect to baseline costs – not savings versus the budget and they prove that significant savings can be made whilst having a conservative trading strategy and protecting a budget.

Understanding Flexible Energy Procurement

Flexible energy procurement allows businesses to more effectively control costs and manage the price risk of buying from a volatile energy market.

In contrast to traditional fixed supply contracts, a flexible approach provides options so you can proficiently manage market exposure to avoid rising costs and take advantage of favourable market movements.

A flexible procurement strategy allows businesses to be more proactive, reactive and adaptive to steer costs in alignment with their goals and needs, thereby, securing better value.

This approach requires a keen eye on market trends, a deep understanding of risk management and the agility to make timely decisions.

EIC’s robust systems and expertise provides a comprehensive solution so our customers’ energy procurement experience is better and easier.

An AI Depiction of Flexible Energy Tariff

Budget Protection: The Strategy behind the Savings

EIC Partnership has a proven history of effectively safeguarding budgets against unpredictable market changes.

Our approach has stood strong during major events like the financial crisis, the Fukushima nuclear incident and recent energy market upheavals, helping our customers save money while keeping their budgets intact.

Our budget protection strategies work by continually monitoring market prices and your level of exposure to monetise the price risk relative to the agreed budget.

We stress test all customers’ positions every 10 minutes in line with agreed metrics set out within the agreed trading policies to ensure budget costs are protected.

We establish baseline costs based on prevailing market prices and then add an amount of your choosing on top to define the budgets.

Usually the procurement strategy is mainly about managing exposure. You want to be exposed to the market when prices are falling and not exposed when prices are rising.

The complication comes in the fact that the market is volatile and no one can know for certain what will happen next.

With our budget protection strategies, because the budget (worst case) costs are clearly defined and our systems are constantly monitoring the market movements and calculating risk we can begin trading straight away and continue right up to the point of delivery.

This maximises opportunities for best results whilst still providing our customers with clarity and peace of mind.

Tailoring Strategies for Individual Success

While our budget protection strategy works really well, at EIC Partnership we understand that every client has different needs and levels of comfort with risk.

That’s why we don’t use a one-size-fits-all approach. Instead, we carefully create Risk Managed Trading Policies for each client, making sure they fit their unique goals and requirements.

These trading policies are important in ensuring clarity and accountability to the agreed strategy.

Additionally, our customer portal provides trading performance on demand and the dedicated Account Managers ensure our customers are fully informed and supported at all times.

To maximise flexibility the agreed trading strategies can be changed at any time at the request of our customers.

This means we can adjust your plan as things change, whether it’s because the market shifts or your business needs evolve.

This way, we can keep your strategy up to date and working well for you, ensuring you get the best results tailored to your situation.

This bespoke approach maximises the benefits of flexible energy procurement for every client, aligning their energy strategy with their overall business goals.

Why Now Is the Optimal Time to Secure a Flexible Energy Contract

A Graph Showing the Prices of Electricity

Price of Electricity from February 2023 to February 2024

Gas Prices from 2023 to 2024

Price of Gas from January 2023 to March 2024

Securing a flexible contract provides the framework to execute a trading strategy.

The sooner you have a trading strategy the sooner costs can be effectively controlled. Securing a contract takes time so reacting to rising prices to protect costs is ineffective.

Prices have softened as can be seen on the price charts above, reaching 2021 lows, not far above the long-term price ranges seen prior to the energy crisis.

Hopefully prices will continue to soften but to manage the price risk and ensure the current value is not lost, procurement options should be considered now

With a budget protection strategy we can set and protect budgets based on the current market prices and still have the ability to take advantage of further market falls.

£100m Savings Locked in Over 10 Years

The £100 million saved for clients by EIC Partnership over the last decade is not just a milestone but a clear indicator of the power of strategic flexible energy procurement.

Does your current procurement strategy deliver everything you need?

If you would like to discuss potential procurement solutions – how they would work and how they could help you, then please click here and we’ll be in touch.

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FAQs

See a selection of our most frequently asked questions.

Which suppliers does EIC work with?

EIC stands out from other energy consultancies because we’re completely independent.

This independence allows us to offer supply options from a wide range of energy suppliers, all of whom are unrelated.

Our energy advice is unbiased, giving you the freedom to make informed decisions for your business.

We have a proven track record of skilfully negotiating cost-effective contracts, ensuring you consistently get the best energy prices when you partner with us.

What if I am already with an energy consultancy?

If you’re already working with an energy consultancy, it’s a good idea to start exploring your options well in advance, preferably 18 to 24 months before your current supply contract expires.

It’s essential to distinguish between your energy supply contract and your energy consultancy agreement.
You have the flexibility to switch your energy consultancy while keeping your current energy supplier intact.

What happens after the energy procurement step?

Our comprehensive account managed service provides our clients with peace of mind throughout the entire energy procurement process.

When you choose our fixed energy procurement service, we’ll assign an account manager to you, someone equipped with the expertise and abilities to provide a customised solution that aligns with your unique needs and requirements.

The professionals who make up our dedicated procurement team are well-versed in resolving inquiries and skilled in engaging with energy suppliers to negotiate contracts on your behalf.

When is the best time to renew my energy contract?

The timing for transitioning to a new energy contract is flexible; you aren’t bound by a fixed schedule or renewal date.

Given the ongoing high volatility in the global energy market, it’s increasingly crucial to look beyond traditional renewal dates when contemplating a new contract.

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