ENERGY PROCUREMENT CONSULTING & MANAGEMENT
PricingUtilities.com manages the energy procurement process from start to finish for its clients. Creating the proper competitive environment and accurately comparing competing offers is critical to the energy procurement process. PricingUtilities.com’s relentless focus on the details of proposals, pricing structures, and contracts ensures that clients get the maximum value out of their procurement strategy and do not face the surprise of an unexpected cost after contract execution.
Qualification & Proposal Process
PricingUtilities.com maintains relationships with over 40 leading suppliers of electricity, natural gas and related services in North America. Our insight into their operations allows PricingUtilties.com to:
- Provide clients with pre-qualification information on potential suppliers to narrow the field as appropriate.
- Develop a clear and detailed solicitation based on the energy strategy developed with the client, specifying the desired product structures.
- Work with suppliers in customizing their products to fit the specific needs of the energy strategy.
Comparison & Analysis Process
Once PricingUtilities.com has received initial proposals from suppliers, a thorough analysis of the proposals is conducted and a detailed comparison is prepared. Key areas of evaluation include:
- Initial pricing, and what cost components are included or passed through.
- The calculation methodology for pass through cost components and recommendations as to whether the methods are reasonable.
- The risk/reward balance of any pass through components (i.e. will taking a certain cost as a pass through ultimately result in higher or lower overall costs).
- Comparison of contract provisions.
- Overall supplier capabilities and financial strength.
Agreement Negotiation Process
A critical phase of the procurement process is negotiating contract terms with shortlisted suppliers. As part of the contract negotiation process, PricingUtilities.com will:
- Provide a detailed review of each short listed supplier’s contract.
- Provide redlines of each agreement with Energy Edge’s suggested modifications to commercial terms
- Coordinate with client’s in-house counsel.
- Lead contract negotiations with suppliers.
- Assign values to differences between suppliers in various contract provisions so final contract comparisons can be made.