This is the question I am asked the most when speaking with businesses.
Your business energy rates are likely to change from 1st October, the below guide provides insight in how to benchmark your energy consultant’s trading performance. This guide recommends which questions to ask your energy consultant to transparently disclose their performance to you.
You may purchase your energy via an Aggregated Basket, via a Fixed Price tender or via a Standalone Flexible contract. The most basic requirement of your Energy Consultant should be to ensure the commodity price within your unit rates are as low as possible.
3 simple questions to ask your Energy Consultant
Your consultant may trade your energy well and deliver a rate increase, your energy consultant may also trade exceptionally poorly and deliver savings.
Three basic metrics to measure your energy consultant’s trading performance are as follows.
- Delivered commodity price versus the 12-month market high
- Delivered commodity price versus the 12-month market average
- Delivered commodity price versus the 12-month market low
Ask your energy consultant to provide the commodity price they have delivered for your next 12-month period from 1st October 2020. Simply benchmark this figure against market prices from the last 12 months in the table below.
This simple but effective exercise takes very little time for you to complete and provides a very effective analysis of the value your energy consultant has provided to you.
The closer your delivered commodity price is to the market low, the better your consultant has performed.
Your energy consultant tracks markets intraday, every day. It is my personal view your energy consultant should be delivering commodity prices lower than the 12-month market average summarised above.
Please feel free to contact hello@gleg.co.uk to arrange a more detailed discussion regarding your procurement strategy and to help you understand your incumbent Energy Consultant’s trading performance.
Chris Haines. Consultant, GLEG.
