Commercial and industrial companies can save energy costs online.

Commercial and industrial customers will have to prepare for additional electricity costs in 2017. The reasons are increased grid fees, a higher EEG levy and price increases on the part of the suppliers. For professional energy buyers, it is important to reduce expenditure on electricity and look for potential savings. One way to do this is through efficient, online-based purchasing, which enables competition in the market and the best energy prices. enPORTAL offers exactly that: A professional procurement of electricity with standardised online processes and currently 570 suppliers on the online marketplace. The portal operator has summarised which factors influence the price of electricity in 10 points for energy buyers.

1. influencing factor electricity price: distance to delivery period

What counts in procurement is the period between the conclusion of the contract and the procurement year: the greater the volatility of the markets and the further away the delivery period is from the time of purchase, the riskier and more expensive the suppliers' electricity price offers are. Rainer Otto, Managing Director of enPORTAL recommends: "Keep an eye on the stock market price as well as market developments and conclude the energy supply contract for one year at best." Since electronic tendering and awarding is done in a few hours with enPORTAL, purchasing for further supply years can be implemented quickly.

2 Influence of electricity prices: Competition in the energy market

"Anyone who does not take advantage of the competition among the numerous suppliers in the energy market when purchasing energy is giving money away," says Clemens Graf von Wedel, Managing Director of enPORTAL. The more suppliers are queried, the more likely it is that the best energy price will be achieved at the time of the tender. Offline, a broad market query is associated with a lot of work and time. This is easier and faster with an online portal in which all energy data is permanently available in the cloud and can be made available to the energy suppliers with a click. According to an enPORTAL study, buyers were able to save around 0.4 cents per kilowatt hour on electricity in the first half of 2015 thanks to the great competition at enPORTAL. For a consumption of 10 GWh, this leads to[1] to 40,000 euros cost difference.

3. influencing factor electricity price: short commitment period

Electricity is an exchange-traded product and is subject to price fluctuations. The longer suppliers have to commit to their offer, the higher the risk premiums. A quick decision leads to the lowest price, because the price change risk for the supplier is low with a short offer period. That is why the commitment period at enPORTAL is two hours, so that the best energy prices are possible at the time of purchase. In the near future, enPORTAL's managing directors believe, contracts will be concluded in real time. Until then, Rainer Otto, Managing Director of enPORTAL, advises: "Use the shortest binding period and speed up internal purchasing processes to save energy costs."

4. influencing factor electricity price: load continuity

With enPORTAL, buyers have the option of displaying historical load profiles over several delivery years to interested suppliers. This provides a more precise specification of the purchase behaviour, which simplifies the price calculation. Clemens Graf von Wedel, Managing Director of enPORTAL, emphasises: "The more continuous and consistent the load profile of a commercial or industrial customer is over a certain period of time, the more favourable the energy price can be." Manufacturing companies that work to order and have more fluctuations in their consumption patterns may pay more than hospitals, for example, where the consumption structure does not change fundamentally during the week.

5 Influence of electricity price: industry, credit rating and image

Creditworthiness and corporate image influence the price of electricity and are relevant for suppliers when submitting bids. Creditworthiness is important because suppliers take into account the risk of non-payment at the time of delivery in their price calculation. In the worst case, the supplier is left sitting on the electricity quantities already procured. Customers who are economically successful or represent a well-known brand receive considerably more and sometimes better offers than customers with a poor credit rating. According to Rainer Otto, Managing Director of enPORTAL, the following applies to all companies: "Only by taking advantage of the intense competition in the market can buyers find the supplier with the lowest electricity price. Among the 570 suppliers on our online marketplace, there is always a supplier who makes a good offer."

6. influencing factor electricity price: tolerance band

Energy-intensive companies cannot always estimate what the electricity consumption will be for the following years. In this case, energy buyers receive offers with an excess and shortfall regulation (e.g. 80-120 % deviation) in an electronic tender. If consumption moves within the agreed tolerance band, the price remains constant. If it moves outside the tolerance band, the quantity not consumed (underconsumption) is to be remunerated at a discount; in the case of overconsumption, a price surcharge follows. The more historical consumption data is made available for the calculation, the more accurately a supplier can set an individual price. With enPORTAL, the supplier who submits an electricity price offer without quantity restrictions often wins the contract. This works because the customers' consumption data is available transparently and can be viewed to estimate an open supply quantity. Ultimately, complete electricity data creates transparency, trust and better electricity prices.

7. influencing factor electricity price: energy consumption quantity

In electronic tenders, the amount of electricity consumed can influence the density of bids and ultimately the electricity price. If large customers need too much or too little kilowatt hours of electricity or if their load patterns are difficult to forecast, a supplier may not bid in a tender. After all, suppliers have to make sure that the quantities they buy can realistically be sold on to customers. The more suppliers are approached, the more likely it is that buyers can use this factor to their advantage and be found by the best supplier. With enPORTAL, buyers can currently reach 570 energy suppliers online with a click.

(8) Influence factor electricity price: energy supplier's balancing group

Energy supply companies look for large customers whose load profiles fit as optimally as possible into their own balancing group. An essential reason for this is a harmonious interaction of the consumer's load profile with the supplier's balancing group. The more balanced the total demand across all customers, the more evenly the supplier can utilise its power plant park, for example. enPORTAL, with its current market presence of 14 TWh, offers suppliers an ideal customer acquisition portal for procurement. Conversely, on the supplier side, the energy buyer finds those who are interested precisely in his load profile. The more balancing groups an energy buyer matches through a broad offer query, the higher the probability of receiving offers with a low price premium on the exchange prices.

9. influencing factor electricity price: stock exchange price

A significant influence on the price of electricity is the exchange price on the Leipzig Power Exchange (EEX). Since the price of electricity changes hourly and can rise or fall over the course of hours, days or weeks, it makes sense to take this factor into account. It does not make sense to purchase electricity at a fixed time X, but when the price on the exchange is low. In order not to miss favourable market opportunities, there are digital options that make it easier for buyers to monitor them. enPORTAL has integrated an automated "stock market price alert" into the online portal for this purpose. Buyers can enter upper and lower limits for target prices here and are informed immediately when the values are reached. Subsequently, an electronic tender can be started quickly. Energy buyers do not need to deal with the stock exchange on a daily basis and can procure their electricity at the best market prices.

10. Influencing factor electricity price: Energy price forecast

No energy consultant or purchaser knows how electricity prices will change in the future and when is the most favourable time to procure. In order to minimise the risk and not miss market opportunities, enPORTAL has developed an "energy price forecast". Here, an individual cost forecast for each offtake point is displayed daily in the online portal. The forecast values are based on the daily futures market prices on the exchange with a corresponding mark-up. Due to the many offers submitted via the online marketplace, the portal operator knows the level of the mark-ups that suppliers calculate for offtake points. This makes it possible to see at a glance which target prices can be achieved in an electronic tender. The forecast values are so sharp that the result is predicted with a deviation of less than 2 %. This supports decision-makers in deciding whether or not to launch the tender. "Our individual energy price forecast not only minimises effort, but also offers transparency and the best electricity prices at the time of purchase," says Rainer Otto, Managing Director of enPORTAL.