Managing Energy Contracts Strategically

The Advantages of Managing Energy Contracts Strategically

Energy prices are volatile and the deals providers tout in the hope of attracting new business typically have expiry dates. Here’s how Enel X can help

Published on NOVEMBER 27, 2019

The importance of monitoring energy contracts

Monitoring energy contracts is unlikely to be at the top of anyone’s list of priorities, given the complexity of energy markets and the fact that employees -- particularly staff of major international companies -- already have a great deal to do. At the same time, proactive management of energy costs, rather than attempting to react at the last minute as a deal expires, can offer a competitive advantage to companies of all types and sizes, as well as slashing bills. That makes it imperative to use an outside adviser that will make it his business to implement best practices. The consultant should also manage those contracts as part of a wider strategic approach to the task.

Here’s what usually happens

To lure a new client, a provider offers an attractive deal for a limited time. Once the deal expires, the contract renews automatically at the default rate and the customer is left facing what in all likelihood will be a shockingly expensive bill. So, to avoid risks to a company’s overall finances, it’s vital to plan carefully and take action ahead of time to sort out expiring contracts.

 

The first thing to do is to find a contract that meets your needs; then, automate the management process. That will avoid missing expiry dates or wasting time monitoring contracts.

Energy Consulting Services

Energy Consulting Services

Understanding and managing businesses’ energy consumption in a sustainable way

The role of automating contract management

Business Solutions

Business Solutions

Enabling sustainable progress, together

Automating contract management can be a driver of increased revenues, leading to an improved bottom line. This is where Enel X can help, by giving customers the means to take a strategic approach to their energy use. Enel X advisers and procurement experts have the advantage of using the Energy Exchange Software, our industry-leading energy intelligence and analytics. This gives them the initiative in managing contract renewals, and helps avoid having to react to looming expiry dates. By monitoring market conditions, mapping and tracking market changes in real time, our experts can alert customers to expiring contracts and flag the best deals available, possibly from a different supplier. Automating contract renewal with the help of an energy partner, such as Enel X, will allow you to take advantage of favourable markets without increasing pressure on staff, and without damaging your business.