First describe your needs, then request prices.
A new machine, an additional location, or an expiring contract: the search for an energy supply often begins with a specific reason. However, those who request a price immediately may receive offers for different quantities or delivery periods. In such cases, it's difficult to meaningfully assess the lowest price per unit.
Therefore, compile standardized request documents that are sent to all contacted suppliers. These documents should specify which delivery points are included, when deliveries are scheduled to begin, and the expected consumption. If any information is missing, clearly indicate the gap and designate who will clarify it. This way, suppliers can see which data has been confirmed and which still needs to be added.
These documents belong on the table
- Current billing: Delivery point, market location ID as identification number of the consumption point, billed period and consumption.
- Existing contract: Term, termination policy, price components and agreed quantity conditions.
- Consumption data: Annual quantities and, if available, a complete load profile. It shows when and how much energy is required; unit and time reference are included.
- Operational changes: new facilities, shifts, locations or planned shutdowns.
- Responsibility: who confirms information, evaluates offers and approves the transaction.
For multiple locations, one line per delivery point is helpful. A total quantity alone is insufficient if the locations have different contract end dates or measurement methods. The appropriate structure for this can be found in the article on Procurement for multiple locations.
Which document answers which question?
| Document | This reveals |
|---|---|
| Invoice | Quantity, time period and delivery point |
| Contract | Duration, deadlines and conditions |
| Load profile, if available | Temporal distribution of consumption |
| Operational planning | Known changes and open assumptions |
Record the comparison framework in writing
Define the delivery start and end dates, as well as the desired procurement model. If a fixed price is to be evaluated, it must be clear which components are actually fixed. For a market-based model, the price formula, reference market, and additional charges must be included in the comparison. Different pricing logics should not be lumped together in a single column like "ct/kWh".
"Which assumption in your offer differs from our inquiry documents?" This question reveals differences before an offer is selected.
Offer validity and feedback procedures are also important. An earlier offer may be based on a different market situation than a later one. Note the price as of its quotation date and the expiration date for each offer. If necessary, agree on a common timeframe for updated offers so that you can compare currently valid terms when making your decision.
Example from production planning: A second shift is scheduled to begin in July. Describe this change with its start date, instead of distributing the higher annual quantity evenly across all months. All suppliers should calculate the same planned schedule.
The evaluation also includes the question of whether the supplier can economically sustain its commitments under unfavorable market prices. Specific checklist points can be found in the article Supplier Risk: Six Questions Before Concluding a Contract.
Be open about dealing with missing data
If the load profile is missing, the initial exchange can be prepared using the invoice and the known operating times. For a binding offer, the supplier may require additional measurement data. Ask which data is missing and by when it must be provided. If quantities or shift times are changed later, the affected offers must be updated based on the same information.
Before sending out your request, check which information the requested suppliers actually need. Unnecessary account or employee data should not be included in a wide distribution list. Keep a dated copy of the request documents; otherwise, it will be difficult to determine later which supplier received which version.
Distinguish measured values, assumptions, and missing information
For example, a billed annual quantity including the period.
For example, a new plant with a planned start date.
Record who will provide missing information and by when.
From offer to reasoned decision
Evaluate price, quantity risk, processing, and your own decision-making processes together. A model with multiple purchasing times, for example, requires clear approvals. Our comparison of procurement models explains the differences between fixed-price, tranche, and market-based models.
The Federal Network Agency recommends checking contract durations, notice periods, price guarantees, and payment terms when comparing offers. The specific terms of your business contract remain decisive. Federal Network Agency's information on switching suppliers.
Would you like to prepare for your next purchase? Describe your needs and desired delivery start date to OPTUM. In our initial exchange, we will clarify which documents you already have and what information is still needed for a reliable request.
