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Utility Purchasing
Inenco provides customised services to support energy and utility procurement programmes and e-auctions including the following key elements:
As a minimum, 12 months' consumption data is required for each supply. In addition, copies of any high volume data made available by your supplier in an electronic format are required to enable more detailed analysis to be undertaken. We also require copies of such billing data on an ongoing monthly basis throughout the duration of the agreement.
A tender is prepared for issue to selected licensed suppliers. Such selection results from our programme of supplier review which addresses the ability of the supplier to deliver to the required specification. The tender is released no later than 10 weeks prior to the renewal of the contract but possibly earlier if market conditions suggest this will be beneficial.
The invitation to tender is based upon our database of your site(s) together with consumption data. If significant changes in usage are planned, the facility exists to model alternative consumption patterns and tender accordingly. This data will be output in a format suitable for potential suppliers to quote accurately and in a timely fashion.
Offers are reviewed in a variety of formats and with varying lengths. All offers received are added to our unique analysis system and compared with each other and the database as a whole. The analysis quantifies the projected running costs under each offer for each supply on a fully delivered basis, irrespective of the format of the offer. This is done using the power of our costing systems to determine the underlying energy component and margin (after allowing for the published elements such as distribution, transportation, transmission, losses, fossil fuel levy, metering and settlements) of each offer.
Whilst price is, perhaps, the key measure in the negotiation process, we do not overlook the potential for tendering to enhance the service specification. As part of our negotiations we consider issues such as Payment Terms, Invoice Provision, Debt Management and Added Value Services and seek to present the optimum solution to you in terms of both price and service.
After the initial offer assessment we compile a summary of offers. A decision will then be made as to which suppliers we will re-approach based upon our knowledge of the markets and the most competitive suppliers at that time. Revised offers and alternative terms and conditions will be negotiated and assessed as previously detailed. This process will be repeated a number of times until the optimum price is achieved.
Once the negotiation process has been completed the results of the final offer assessments will be collated and reported to you along with our recommendation. The selection will be based on the total cost of each offer including delivered price, payment period, seasonality of charges and any other relevant factors detailed within the terms and conditions.
We communicate acceptance of the offer to each supplier confirming all the relevant details such as sites to be included, the agreed rates and terms and conditions. This action will be taken within the necessary time-scales to allow implementation from the contract renewal date.
Suppliers will be requested to forward all contractual documents to us for approval prior to signature.
We vet all contractual documents prior to signature to ensure that the prices, payment period and terms and conditions are as agreed including the provision of any added value services.
In our capacity as utility consultants the advice we give in connection with terms and conditions will be based upon our considerable experience and industry best practice.
We will liaise directly with all relevant parties to ensure the smooth implementation of the new supply contract from the agreed dates. We would monitor the supplier changeover process and ensure that this took place as efficiently as is practical, dealing with any problems during the process, through to the receipt of the first correct invoice. This is an area where a lot of problems traditionally occur. The database would be updated and, in line with normal practice, future bills would be checked against the new pricing structure.
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