Flexible energy procurement involves tracking the wholesale market, allowing you to purchase energy when the costs are low while holding off during price surges. As a result, you can spread price risk throughout the duration of your contract by matching your purchasing plan with movements in the market, rather than working against them.
By doing so, you can significantly reduce your energy expenses, as long as you implement the right strategy for risk management as well as the most suitable model for your purchasing (e.g. seasonal or advance-month deals).
To develop and maximise the right strategy for a flexible approach, OFGEM recommends that businesses partner with energy specialists to make the right purchases at the right time. That’s where we at Northern Gas and Power come in.
As the market continues to evolve, we strive to curate the most innovative solutions possible to provide a balance of both flexibility and certainty.
Fixed Contracts
This approach provides cost stability in a volatile market, covering all related expenses - from distribution fees to government taxes - within the unit rates.
Day ahead trading refers to the buying and selling of electricity on the day before the actual production and delivery.
Baskets
An energy basket is a viable option for anyone using from 1GWh right up to 10GWh and is fully managed by our expert traders.
Simple Flex
Simple flexible energy contracts allow you to take advantage of market volatility, by purchasing energy throughout the life of the contract.
Our Flexible Purchasing Services
If you decide on a flexible energy contract, our team will be on hand to advise you on the best way to proceed, as well as assist in developing an effective way forward for your business. We can help create a procurement policy that clearly outlines your purchasing strategy, while also reducing the risks involved in not opting for a fixed price contract.
With the correct risk management strategy, our experienced team and state-of-the-art systems, you can rest assured that your energy will be well-managed.
Our Approach
Our Traders: Expertise You Can Trust
Meet our team of seasoned energy traders, who bring unparalleled expertise and a commitment to delivering superior results. From capitalising on emergent opportunities to mitigating risk, we continuously refine our approach to stay ahead of the curve.
Julian Hernandez, Senior Energy Trader
• Experience in energy trading since 2021 in the UK
• Graduated with a double degree in Business and International Finance and Economics
• Worked in banking and pension funds before moving to Australia
• Worked in various trading roles before progressing to Senior Energy Trader
Stewart Spink, Senior Energy Trader
• Experience in energy trading and risk management since 2001
• Worked at ENGIE, Sembcorp Utilities and LG Energy
• Experience in forward hedging retail and domestic portfolios, as well as 24/7 power station optimisation & dispatch
• Earned a BSc Economics in 2004
Alison Bierlaire, Senior Energy Trader
• Experience in energy trading since 2018
• Holds two Master's degrees, one from Coventry University in Oil and Gas Management, and another from the University of Aberdeen in Petroleum, Energy Economics and Finance
• Worked for British Gas, Centrica, and Eni, in various roles relating to energy trading and risk management
Nicky Gabrielli, Senior Energy Trader
• Experience in energy markets since 2015
• Experience in trading, including hedging and intraday power
• Worked at npower, National Grid Ventures, S&P Global Platts, Cheniere, Dare
• Specialises in market analysis, operations, and trading
Lukas Walsh, Energy Trader
• Experience in the energy consultancy industry since 2020
• 3 years' experience in trading
• Started working in operational support for customers in 2019, promoted to Trader in 2021
• Worked at Brownlow Utilities across a number of departments
Edward Bilton, Energy Trader
• Graduated with a degree in Maths and Economics from Newcastle University
• Started at NGP in March 2023 as a Graduate Energy Analyst
• Promoted to Energy Trader in October 2023
Lee Oakley, Analyst
• 2 years in the energy industry
• Experience in the energy industry since 2021
• Previously worked for Arnold Clark, analysing and developing sales staff performance
• Former billing analyst for EE
lan Muir, Analyst
• Energy Analyst since 2023
• 20 years as freelance solutions specialist in online ads and sales
• 6 years as analytical chemist in R&D and production
• 5 years as industrial chemist in QC and chemical plant optimisation
Frequently Asked Questions
How does flexible energy purchasing work?
With flexible energy contracts, your business will be able to buy energy at wholesale prices rather than a fixed rate set in a long-term contract. Companies can purchase energy in smaller, more frequent increments based on market prices, which can fluctuate daily. While this approach offers the potential to capitalise on lower prices during periods of reduced demand or excess supply, it also requires active management and a good understanding of market trends.
Do flexible energy contracts cost more than fixed energy contracts?
Professional management and favourable market conditions can very well make flexible energy contracts more cost-effective than their fixed counterparts. However, the latter offer more predictability in pricing, while flexible contracts carry more risk as prices can vary significantly. One thing to bear in mind, though, is that fixed contracts can result in higher rates during periods when market prices are lower – something that flexible contracts can help avoid.
How much can I save with flexible energy procurement?
In optimal conditions, businesses can achieve significant savings compared to fixed-rate contracts.
However, the amount you manage to save can vary widely based on market conditions, your purchasing strategy, and external factors like weather or geopolitical events that influence energy prices. This is why it pays – literally – to have professionals at your side, who can help actively manage your contract provide a good understanding of energy markets.
What’s the difference between prompt and curve pricing?
Prompt pricing refers to the cost of purchasing energy for immediate delivery, typically within the next day or two. It is influenced by short-term factors like current demand and supply conditions. Curve pricing, on the other hand, involves buying energy for delivery at a future date and is based on projections of future market conditions. This type of pricing helps in hedging against future price volatility.
Can smaller businesses benefit from flexible energy procurement strategies?
Yes, smaller businesses can benefit from flexible energy procurement strategies, especially if they are able to manage the risks involved. The benefits involved include cost savings and flexibility - but they do require a commitment to understanding energy markets and potentially investing in specialist advice or tools to monitor and react to market changes.
How can businesses mitigate risks associated with flexible energy contracts?
Balancing stability and flexibility is key when it comes to flexible energy purchasing, which is why partnering with energy consultants who understand market dynamics can bring the right expertise needed. They can help you implement hedging strategies to protect against significant price increases, as well as keep you informed about market trends and energy forecasts to make timely decisions.
Is flexible energy procurement right for my business?
It’s important to assess your business’s risk tolerance, financial stability, and capacity to actively manage flexible energy purchases. You’ll need to factor in the potential impact of fluctuating energy costs on your budget, your ability to invest in tools or consultancy for managing energy procurement, and the scale of your energy usage as well as how market changes might affect your operations.
