Energy prices fluctuate constantly, which can significantly affect your energy bill and performance against budget. By taking a proactive approach to buying energy, you can better control your costs.
RTS Controls Ltd. works with building owners that are looking to purchase energy from other sources than their local distribution utility. Savings and benefits typically result from three broad types of procurement contract:
Renewal – where the term of a contract (or agreement) has ended and it’s renewed through a procurement activity. A renewal activity often has a strong historic baseline that you can use to compare and quantify the savings/benefits the activity creates. However, any specification changes should be identified and considered in the comparison. For example, in a utility rate contract the building involved might have signed to a significantly higher rate at time when market prices were much higher than what is available in the current market.
New – for procuring products/services for the first time, outsourcing existing services or undertaking a one-off procurement activity. New procurement also requires an appropriate baseline for comparison, such as the budget in the original business case (as long as it’s realistic).
Renegotiation/Buy-out of Contract – an interaction with an existing supplier of utilities that results in savings to the building owners with a formal procurement process. The savings/benefits might be simple to quantify, such as those that result from reduced delivery costs, or bulk ordering that leads to supplier discounts or rebates. Contracts in these circumstances have to be evaluated for the feasibility to an early ‘buy-out’.