Dynamic Flexible Risk Managed PortfolioExclusive to Catalyst our supplier driven service connects your energy procurement with multiple other customers to form a stronger legion of energy buyers.
We can think about energy prices like steps in time, as energy prices go up and down with market news. Then if we think about the red ball as the time to buy, we are looking to make several incremental purchases avoiding the top of the stairs and trying to get to the bottom of the stairs. This method generates a better than average price with no guarantee that we hit the bottom every time, but we do avoid the highs along with any future price shocks. Energy is purchased ahead of the contract start date and during the life of the contract.
The most common contract option is fixed with prices fully secured at the day of acceptance. This relies on luck rather than judgement in the hope that you get a price at the right time.
What is it?
By grouping together with other organisations, individual clients pool their collective volume together which reduces the overall rates they pay and reduces the risk premium for everyone. To further reduce the cost for the collective portfolio, the multiple buying decisions and timing of those purchases are managed directly by a supplier. This removes our cost to serve so we can pass those savings directly onto our customers and provide direct access to multi-million pound supplier volumes. This in combination with our energy spend management platform provides an unrivaled solution to contract life-cycle management.
Who is it for?
This group buying service is provided to half hour metered customers with an annual consumption of between 1-GWh and 20-GWh that need access to wholesale energy markets through a flexible energy contract but don’t need a be-spoke approach.
By combining individual requirements into one large portfolio with other similar like minded customers into a single risk managed portfolio.
For those customers that have traditionally used fixed retail energy contracts this provides access to wholesale energy market prices.
What are the benefits?
As this is a direct supplier risk managed service it removes the cost associated with us managing any purchasing decisions and having to monitor the market for potential buying signals.
Suppliers manage multi-million pound purchasing decisions daily and have unlimited resources to constantly monitor markets for key buying signals.
> Access wholesale energy prices
> Reduced risk premiums
> Fully managed service
> Half hourly metered sites
> 1-GWh and 20-GWh
> Portfolio managed
> Risk managed
> Low risk approach
> Lower price premiums
Product Selection Process
The following elements provide a menu of set product options for our Dynamic Flexible Risk Managed Portfolio.
If these set options don’t support your business requirements then a be-spoke solution could be a better option. In this instance please contact us to further discuss available options.
Our award winning energy team can fully support any be-spoke flexible requirements for those that would prefer an more tailored approach or for smaller consumption customers our SME team can provide a range of fixed and semi fixed contract options.
Our Dynamic Flexible Risk Managed Portfolio is designed to support the vast majority of customers within the consumption range and the flexibility means that you tailor the approach that best fits your business.
“Pick from a menu of options that best fits your business goals”
It's never to early12-months in advance of a contract start date is normal for our customers.
Lets dispel one of the biggest myths with energy contracts that you don’t need to wait until a few months before the end of your contract to start a new contract. Many organisations wait for an energy renewal price letter to arrive before they start reviewing alternative offers. Suppliers are aware of this and often the letters are sent after the minimum notice period has already lapsed.
All to often customers are then caught in the roll over trap or they don’t allow them selves enough time to review the market. By default they end up on a further contract term on rates that are no longer competitive.
> Sign a framework only approach 12-months in advance of a contract renewal
> Take advantage of market volatility
> Make multiple energy purchasing decisions rather than just one
> Avoid market highs and take advantage of market lows
> Allows for a longer term view and better management
Select - 36-Month Optimum Framework
All of our framework agreements are based on 36-months as this gives us the optimum future view of the markets to make multiple incremental purchasing decisions for our clients.
This way rather than committing to full energy requirements in one go, a framework is agreed but no energy or gas is purchased until the right opportunity presents itself.
When we do purchase we don’t necessarily purchase in order, so we may buy some energy for year 3 first if the opportunity presents it self. Buying some incremental amounts spreads the market risk with the aim of achieving an overall better average.
In simple terms we only buy what we like when we are avoiding market highs, until we have covered all requirements.
Having the ability to forward view makes it easier to manage and we would look to add a further 12-months upon the contract anniversary date to maintain that long-term horizon view.
Select - Your Managed Risk Scale OptionChoose from Basic, Medium or Advanced
70% Fixed 30% Open
This is a basic approach where we purchase 70% of the contract volume in one go. The remaining 30% is then purchased during the life of the contract avoiding any market highs.
50% Fixed 50% Open
This is a balanced approach where we secure 50% of the requirements in one go. We then buy the remaining 50% is purchased separately during the live contract.
30% Fixed 70% Open
This is our advanced approach where we purchase 30% of the contract volume in one go. The remaining 70% is then purchased during the contract avoiding market highs.
Simply select the option that best supports your business needs and our consultants will take of the rest.
These are our 3 standard levels available and exclude our be-spoke solutions for sites greater than 20 GWh (Approximately £20 million per annum) or fixed price offers for sites less than 1GWh per annum.
Select - Your Non-Commodity OptionChoose to fix it all or have pass-through for everything.
Upon the start of the contract we can fully fix out all of the non-commodity charges for the full 36-months of the full contract supply period.
At the start of the contract we fix the non-commodity for the first 12-months, then each year the costs are then reset and fixed for a further 12-month period.
Non-commodity costs are pass-through and charged only at the market prevailing rate so prices are variable but based on a pay as you go basis.
Select the option that works best for your business, but we would recommend option C as this provides the most flexibility for an dynamic market and provides the biggest benefit when looking at managing energy consumption.
Select - Data Collection and Reporting
Energy consumption data is mission critical in the success of these products. Suppliers can’t bill you without it and we cant manage your purchasing requirements or set and track budgets or forecasts without it.
Its a bit like having a watch with no hands on, it looks great, but its a bit pointless and it can’t do the job it was designed to do.
That’s why we take care of the data requirements and ensure that we have continued access to your mission critical supply data.
> Monthly energy consumption reports
> You control your own data
> Allows us to make better buying decisions
> Identify energy saving measures
> Reduce overall cost
Select - Energy Spend Management Platform
With the most advanced invoice validation solution available, our RPA powered energy spend management platform provides all your spend and consumption needs in one cloud based platform. This is our key differentiator in the market as this provides unrivaled access to your energy data.
This allows us to automate the collection of all invoices and supporting data, validate this in real time and provide powerful energy analytics for both spend and consumption reporting requirements.
> Automated real time invoice validation
> Budget setting and tracking management
> Energy financial reporting
> Powerful energy management tools
> Robotic Process Automation for improved accuracy
> Machine learning capability
> 100% recovery to customer no share savings approach
Select - Hedging Reports and Market Intelligence
We keep you informed of your purchasing strategy with our energy purchasing hedging reports. These detail your total 36-month contract volume requirements and show how your contract is performing against market activity.
Any existing open positions are indicated along with closed positions and closed price positions. We also provide an indicative future bench mark price so you always remain fully informed of the contract performance.
You will also receive access to our energy market price reports so you get a better understanding of the key drivers influencing energy pricing.
> Market position reports
> Price benchmark performance
> Open and closed positions
> Energy market price tracker
> Key market performance indicators
Select - Award Winning Energy Consultants
Your business energy needs are in safe hands with our Award winning team of energy consultants. For over 2-decades we have helped organisations buy better, by educating and showing them smarter ways to purchase and manage energy. With a focus on the development of cutting edge software solutions we are now able to transform our customers to a digital solution.
Much more than just pricing experts we can help with all aspects of your energy management requirements.
> Carbon reporting as standard
> Access to fully funded renewable solutions
> Advanced IIoT metering solutions
> Consumption analysis and reporting
> Water saving solutions
> Energy compliance
> Site surveys
> Onsite generation
> Energy controls
Questions and Answers
Do we need to decide when to buy?
No we take care of all the buying decisions and decide when the most suitable time to buy is. We will always report back to you on what we have purchased and the acheived price.
Can we still get a budget with a flexible energy contract?
We will provide a budget at the start of the agreement and we will track the performance of the budget as the bills are received and validated in our energy spend management platform.
What is the difference between a fixed and a flexible energy contract?
With a fixed price energy contract you get one chance to buy the energy that’s needed for the contract term. But with a flexible energy contract you have the ability to make multiple purchasing decisions prior to the contract start date and even during the contract period. For larger be-spoke solutions you even have the option to sell back to the market as well as buying.