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FLexible purchasing CASE STUDY

helping your business achieve competitive advantage

Flexible Purchasing - CASE STUDy

What is Flexible Purchasing?

Flex purchasing is an alternative way of procuring energy for the period ahead that spreads your purchases over a period of time, rather than fixing the price for the year ahead.

Flex allows you to take advantage of dips in the wholesale energy market to secure cheaper rates that may not be available in the future and helps you to mitigate the risk of hikes.

Instead of buying 12, 24 or 36 months worth of energy in one go, your energy is purchased In multiple chunks directly from the wholesale market at more favourable times to purchase.

Flexible Purchasing - CASE STUDy

FLEXIBLE PURCHASING - CASE STUDY Actual purchases vs. market price The table below shows our actual purchases for the power supplies against the market price at point of entering the flex arrangement (and what a fixed price alternative was circa trading at that time) This shows how well we have performed against the market by adopting a short term strategy of month ahead purchases and more recently a whole quarter transaction, as well as further out for forecasted periods.

Remembering these purchases are against the wholesale cost of energy which makes up around 40% of your total cost, with the other 60% coming from non-energy taxes and levies.

Flexible Purchasing - CASE STUDy

FLEXIBLE PURCHASING - CASE STUDY Market fixed price vs. average flex price agreed so far The below graph shows this in a visual format based on where the market was at the point of agreement, where the market is now and the flex transactions as a weighted average. We continue to track both power and gas markets with triggers and stop losses for the customers supplies and will advise accordingly if they should continue short term trading or opt for longer durations, based on market movements and drivers.

CASE STUDY - FIBRETECH

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Businesses are increasingly committing to net-zero to improve

From compliance and risk management to renewable generation and finance,

their corporate social responsibility but face a bewildering array

we procure, reduce and manage all aspects of a business’s energy and utility

of initiatives to achieve progress. Advantage Utilities is the

requirements while cutting costs and achieving green energy ambitions.

consultative partner that considers every technology and finance option to help its clients achieve their goals.

Our team of experts will shape the perfect utility solution for your With nearly 20 years in the business, we are experts in our field, backed by a highly skilled team and a network of specialist consultants we rise to every occasion.

business, from rooftop solar, battery storage and combined heat and power, to power purchase agreements, cost mitigation and energy analytics and management tools.

Advantage Utilities champions a consultative, customer-centric approach. We

We are a consultant leading the charge in bringing flexible energy

get to know our clients inside out – their needs, priorities and goals – so that

procurement to the mid-market, helping businesses of all sizes to

we can develop, implement and manage a tailored solution to match.

purchase energy more strategically and mitigate procurement risk.

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