AUDIT & IDENTIFICATION
* Customer data collection
* Current consumption Profile
* Needs, risk appetite and constraints
* Goals, success criteria and KPIs
* Procurement strategy
* Risk policy
* Mobilisation plan
* Dedicated team
* Creation of all bid documents
* Wholesale market and price analysis
* Evaluation of supplier offers
* Contract and price negotiations
* Management of supplier transfers
* Constant review and analysis
* Progress reports
* Ongoing contract management
* Review and report performance against agreed success metrics
* Identify further opportunities to enhance success ratio
* Identify future targets
* Wholesale market monitoring
Your Business Energy Procurement
To guarantee smooth and successful procurement strategy execution, we monitor electricity and gas wholesale markets everyday. By using award winning trading systems, such as Thomson Reuters Eikon trading screens as well as Point Carbon’s energy research and forecasting facility, we know the wholesale energy prices in real-time. We evaluate each energy quotation thoroughly, benchmarking with the consumption average of the market and customer industry. We present all supplier quotations in a clear way so you can determine which offer meets your criteria and delivers the best contract value.
We use Delta e-Sourcing to manage OJEU procurements to involve you in the purchasing process and demonstrate transparency throughout. In addition to the actual energy purchasing, we conduct a review on the value of the procurements made against market average prices and risk. We analyse whether further optimisation of strategies could achieve better value both retrospectively and going forward. You get regular reports on the progress of us achieving the milestones and deliverables of the procurement execution according to the Mobilisation Plan. You also gain an understanding of complex energy bids and contracts via our meticulous analysis.
Housing Associations and Public Authorities are deemed ‘Contracting Authorities’ under the Public Contract Regulations 2015 and as such must comply with the regulations specifically where a contract for supplies is equal to or more than the current threshold of £172,514. Failure to comply with the regulations could result in a Court declaring the contract ineffective, shorten the contract and fine the contracting authority. In addition, the contracting authority may be required to pay for damages and losses to bidders. We have extensive experience in providing fully OJEU compliant procurement options for our clients through established framework agreements or alternatively by creating bespoke OJEU compliant options. We use Delta eSourcing platform to manage our OJEU procurement processes as this provides an EU compliant e-tendering service for notice publication, response/evaluation processing and contract award publication. As an additional benefit, Delta eSourcing allows you to participate in the tendering process through its Collaboration Manager option.
Section 20, Landlords and Tenants Act 1985 (S.20)
A landlord who seeks to enter into a utility contract for a period of more than 12 months, which results in any one contributing leaseholder paying more than £100 in any accounting period, must undertake a consultation exercise before concluding the procurement. If consultation is not undertaken then the landlord may not be able to recover more than the £100 per leaseholder in any accounting period towards the costs. We can help you achieve s.20 compliance through structured procurement plans, assistance with leaseholder consultation programmes or via dispensation applications through First-tier Tribunal.
Social Value Act
The Public Services (Social Value) Act [LINK http://www.legislation.gov.uk/ukpga/2012/3/enacted] requires public bodies, in England and Wales, to consider how the services they commission and procure might improve the economic, social and environmental well-being of the area. We understand that Housing Associations are not just providing housing anymore and are instead looking to support their residents by collaborating with suppliers through a variety of means including skills training, apprenticeships, education programmes etc. We can demonstrate social value by sponsoring Fuel Poverty workshops through our partnership withSustainable Homes and can help you achieve social value from your utility providers as part of your procurement strategy.
Which Procurement Option is the Best for You
One of the important things of the energy procurement strategy for your business/organisation is to determine which procurement technique we will employ. Your decision to buy energy in a particular manner – whether that will be fixed, flexible or basket – needs to be determined according to your organisation’s appetite for risk, need for budget certainty and the wholesale market conditions at the time of the procurement. We will work together with you to determine the priority of those key points, and depending on the outcome we will form a relevant energy procurement strategy to fulfil your objectives. Read more about the Procurement Options brochure 2016.
Fixed or Flexible – What is the Difference?
We successfully fulfil different procurement strategies for your organisation with:
- Fixed Price Fixed-Term: Price agreed on a single day with the supplier before the start of a contract.
- Flexible Purchase in Advance: Supplier’s cost-to-serve fixed in the contract and provider purchases energy requirements in multiple blocks before the beginning of a contract year.
- Flexible Purchase within Period: Supplier’s cost-to-serve fixed in the contract and provider then purchases energy requirements in multiple blocks before and within a contract year.
When we have carried out the tendering process and successfully purchased your business energy at the best market price, we review and report the performance against agreed success metrics. We also identify further opportunities and future targets to enhance success ratio. We evaluate the value of the procurements made against average market prices; then assess whether further optimisation of set strategies could achieve better value both retrospectively and going forward. Once an energy supplier has been selected, we use an Energy Risk VuePoint to log trades and manage procurement strategies. So, our clients can clearly identify whether we have in fact purchased according to the defined Procurement Strategy and how this has performed against the market.
Green and Renewable Energy
All green and renewable energy fall into one of the three categories, namely Good Quality CHP, LEC Backed Energy or REGO Backed Energy. We can present all the available options, including cost premiums and source, so that you can make an informed decision on which product provides the best value to you. To achieve a bespoke mix of green and renewable options we assist you in one of the two ways:
Power Purchase Agreements (PPA)
An agreement is brokered directly with an energy generator and end user for the delivery of energy over a long term e.g. 10 or 20 years. Monarch will identify generators which provide the right type and quantity of energy at a price which represents long-term value for customer money.
Open Utility – Piclo Project
We are working on an innovative project where small generators and energy consumers can come together to sell and buy energy. The benefit of this option is the ability to procure named source green/renewable energy, e.g. solar, wind, etc from a selected supplier within a geographical area. Read more about the Piclo project on Slideshare.
Energy Entrepreneurs Report 2016
Overview of Independent Energy Generation across Great Britain
Read the full report
Energy entrepreneurs are indispensable to Britain’s energy future. They are creating new jobs, improving our energy security, and helping to meet climate change targets, and there is evidence that rapid growth in renewables can bring down electricity prices.
They are leading the transformation from a centralised electricity system dominated by a few large fossil fuel power stations, to a flexible one with thousands of independent generators, where solar, wind and other renewables provide increasing amounts of clean energy, and where storage and other smart technologies save money by matching supply and demand much more closely.
Independent generators have invested nearly £2.5 billion in renewables in the four years since we started tracking the growth of the sector in our annual Energy Entrepreneurs Report. Independent capacity has more than doubled to 11GW and now supplies 7.6% of UK power.