• Procurement models in comparison: fixed price, tranche, spot market procurement and portfolio management for electricity and gas

• enPORTAL highlights new opportunities for industry, SMEs and the skilled trades through digital processes

• The four information brochures are available to download free of charge

Leading platform operator enPORTAL is presenting new information brochures on the four procurement models for digital electricity and gas procurement. Each brochure covers a different strategy model and offers valuable insights into the work processes involved in fixed-price, tranche and spot market procurement and portfolio management. The brochures are aimed in particular at purchasers from industry, SMEs and the skilled trades, as well as public sector clients and sector contracting authorities. In this way, enPORTAL promotes the professional transfer of knowledge in energy procurement and emphasises the importance of digital energy platforms. The four brochures can be downloaded free of charge from the enPORTAL website.

Digital procurement models for electricity and gas purchasing

enPORTAL presents four new information brochures on procurement models in energy purchasing: fixed price, tranche, spot market and portfolio management for electricity and gas. The focus here is on the new digital possibilities and advantages that platforms and numerous developments in the energy market bring with them today. The purchasing strategies are each presented individually, with advantages and disadvantages explained and graphically underpinned with examples. The information series on the four procurement strategies in energy purchasing is aimed at decision-makers and purchasers in companies in various sectors, specifically industry, SMEs and trade, as well as public sector clients and sector contracting authorities. "Our information brochures highlight the new opportunities that arise from automated data updates, interfaces and more efficient processes in energy procurement," says Clemens Graf von Wedel, Managing Director and founder of enPORTAL.

Energy purchasing: Become a professional with a click

In the course of the rapid developments on the energy market, the platform operator was keen to summarise the digital procurement models in energy purchasing in a compact format, as opportunities are now opening up that were unthinkable just a few years ago. "There are new and improved processes for all procurement strategies that buyers need to be aware of," says Clemens Graf von Wedel. This includes the rapid, digital switch to a different procurement model, but also changed quantity limits for a specific purchasing strategy.

The four information brochures are available free of charge on the energy platform operator's website for >> Download ready.

Interview with Clemens Graf von Wedel on digital procurement models in energy purchasing

You have published four new information brochures on procurement models in energy purchasing - what prompted you to do this?

Count von Wedel: In recent years, there have been many changes that energy buyers need to be aware of when it comes to the digital procurement of electricity and gas. The new work processes can be seen very clearly in the individual procurement models, as different points are naturally important depending on the procurement strategy. That's why we've taken a closer look at the respective options and opportunities in four new information brochures in order to pass on our many years of expertise in this area in a transparent manner. Finding the right procurement strategy is a central component of our service.

What specific changes are you talking about?

Count von Wedel: In all four models, the changes primarily relate to easier access to competition on the energy market thanks to digital processes. The same applies to all purchasing strategies: maximise competition among energy suppliers, and this is exactly what digital marketplaces like ours offer. What has also changed is the speed with which companies can switch from one model to another when all energy consumption data is available to them digitally and in full. Switching is then possible immediately, which means that purchasers can react to market opportunities in the best possible way. Another change concerns the quantity limits, which have shifted.

 

Can you explain the shift in the quantity limits in more detail?

Count von Wedel: While portfolio management was suitable for companies with 100 GWh or more per year before the energy crisis, it is now possible from as little as 30 GWh per year. On the spot market, this is already possible from 10 GWh per year. In addition, smaller companies are also utilising the tranche model and discovering the advantage of not placing the risk on one card when purchasing, but rather spreading it more widely. However, which model can be used always depends on the market conditions - i.e. what the energy suppliers are offering and at what price. Our customer service team is on hand with help and advice to find the right model for every buyer.

Is it possible to say which purchasing strategy is better suited to which company?

Count von Wedel: It can be said that smaller companies tend to use fixed-price or tranche models, while larger, more energy-intensive companies tend to opt for spot market procurement or portfolio management. With the start of the coronavirus pandemic and the first look-down in March 2020, futures market prices for electricity and gas on the EEX fell by a good 30 per cent in the short term. It was not only energy-intensive companies that took advantage of this to stock up on fixed prices for the following years in one fell swoop. When prices then literally exploded due to the supply chain problems caused by the gas crisis as a result of the war in Ukraine, these companies saved huge amounts of energy costs. In principle, annual energy consumption, individual strategy and risk appetite play a key role - as does knowledge of market conditions. These are always guide values that can be used to orientate the purchasing strategy. However, a detailed answer to this question can only be provided by talking to energy experts.

What can buyers expect and take away from your information brochures?

Count von Wedel: Our information brochures on procurement models provide energy buyers with the status quo when it comes to the digital procurement of electricity and gas per strategy. They learn about the advantages and disadvantages of the individual models and what to look out for. We hope that this will raise awareness for a more intensive examination of energy procurement - because we believe that many are not yet exploiting the full potential and are not using the optimised tools that are right in front of their eyes. We provide an overview and show what is possible today to optimise electricity and gas procurement and reduce costs in the long term.