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NEGOTIATING CONTRACTS

Given the extremely volatile nature of the energy markets and the constant changes to legislation, purchasing energy involves much more than just choosing a supplier, paying a price and checking the invoices.

Success in negotiation depends upon other aspects, just as important as the price per kWh, such as flexibility when it comes to the time of purchase, volume commitments and invoicing terms and conditions.

We provide advice on contract negotiations with supplier companies, with regard to the drawing up of the tender documentation, be this for a negotiated procedure or for a public tender, organising the tender process and analysing bids and negotiations with suppliers.

The goal in providing this service is to minimise the risks associated with product (penalties for ‘take or pay’ breaches, restrictions on OTC or OMIP transactions, regulation ,etc.). whilst at the same time maximising opportunities (in terms of price, time of purchase, exit clauses, etc.).
The services included within contract negotiation are:

  • Procurement data gathering and updating
  • Selection and definition of energy procurement system and other items on the electricity bill
  • Selection and ranking of suppliers
  • Supply and explanation of term sheet to suppliers
  • Tender opening and receipt of bids
  • Financial comparison of the bids
  • Legal analysis of the bids (compliance tender term sheet stipulations)
  • Report on results and recommendations
  • Negotiation of administrative costs (sales margin and invoicing of scheduling deviations)
  • Contract review and coordination of signing with supplier