By Claire Rose - Senior Energy Consultant.

Last month, I sat across from a CFO who was quietly furious. His company had just renewed their energy contract - same supplier, same terms, "for convenience." Three weeks later, one of his main competitors locked in rates 40% lower for the exact same service.

That particular instance reminded me why I love what we do: helping businesses stop making expensive energy mistakes.

In fifteen years in energy consulting, I've seen companies waste millions simply because they treat energy like a utility bill instead of what it really is - one of their largest controllable expenses.

The good news? Every single mistake I've witnessed is completely avoidable.

💰The Million-Dollar Mistakes Hiding in Plain Sight.

Here's what we keep on seeing: many businesses are still haemorrhaging cash on energy, and they don't even know it.

We recently audited a mid-sized hotel chain who thought they were getting "competitive rates." Turns out, they were overpaying by €180,000 annually because nobody had looked at their contract structure in five years.

The most expensive energy mistakes we see:

• Playing contract roulette - Renewing whenever suppliers call, regardless of market conditions.
• The "set it and forget it" trap - Same contract for years while markets shift dramatically.
• Site-by-site madness - Managing dozens of separate contracts instead of leveraging combined volume.
• Ignoring the calendar - Missing seasonal low-price windows that could save 15-25%.
• Paying for the wrong service - Industrial businesses on residential-style rates (yes, this actually happens).

✔️Real Companies, Real Savings: What Strategic Buying Actually Delivers.



The Quick Wins That Pay for Themselves (5-15% savings in 60 days):

Peter's Story: Timing Is Everything

Peter runs three manufacturing plants in the UK. Last year, he almost renewed in November - peak pricing season. We convinced him to wait until March. That four-month delay saved his company £127,000 over the three-year contract term. Same electricity, same service, dramatically different price.

Getting Your Contract Terms Right

Most businesses accept whatever contract terms suppliers offer. Big mistake. We recently helped a 24/7 data centre switch from time-of-use pricing to flat-rate billing. The result? €89,000 in annual savings without changing a single operational practice.

Strategic Buying Benefits Funnel

✅ The Bigger Picture Moves (10-25% additional savings).

Why Playing Favourites Costs You Money:

Loyalty to energy suppliers can sometimes be expensive. We worked with a retail chain that had used the same supplier for eight years "because they're reliable." When we finally convinced them to test the market, they discovered they were paying 31% above market rate. Reliability is important, but you shouldn't pay a premium for basic service.

Making Your Usage Pattern Work for You:

Every business uses energy differently, but most pay on generic rate structures. We helped a manufacturing company to an interruptible rate program - they agreed to reduce usage during peak demand periods in exchange for 18% lower rates year-round. They've been interrupted exactly zero times in two years.

The Game-Changing Strategies (15-30% total impact).

The Renewable Energy Goldmine:

Here's something most CFOs don't realise: renewable energy can sometimes be cheaper than traditional power. We negotiated a 15-year solar agreement for a hotel chain that locked their energy costs at 23% below current grid rates. They're now saving money AND hitting their sustainability targets.

Protecting Yourself from Price Roller Coasters:

Energy prices can swing 50-80% year over year. Smart businesses hedge against this volatility. One of our clients uses a laddered contracting strategy - renewing portions of their energy needs at different times to smooth out price fluctuations. Last year, while their competitors dealt with price spikes, their energy costs actually decreased.

Top Strategies for Energy Price Volatility

📍 Your Roadmap to Energy Savings (Tailored by Bramo to Company Size).

⚡️ Your First 90 Days: What We Do to Get You Results.

Month 1: Get Your House in Order

The first step is knowing exactly where you stand. We gather every energy contract, bill, and usage report. I know it's not exciting, but this foundation work is crucial.

Week 1-2: The Energy Audit

• Collect all current contracts and recent bills
• Map out renewal dates for the next two years
• Calculate your total annual energy spend
• Identify your largest cost centres

Week 3-4: Market Intelligence

• Research pricing trends in your regions
• Identify potential suppliers and their reputations
• Understand regulatory changes affecting your markets
• Set realistic savings targets based on your situation

Month 2: Go to Market

Now comes the part where we are making suppliers compete for your business.

Week 5-6: Supplier Outreach

• Contact 4-6 qualified energy suppliers
• Request detailed proposals with multiple pricing options
• Ask for references from similar businesses
• Negotiate contract terms, not just prices

Week 7-8: Evaluation and Selection

• Compare total costs, not just unit prices
• Evaluate supplier financial stability and service quality
• Check references and contract terms carefully
• Select your winner and finalise terms

Month 3: Make It Happen

The best strategy in the world is worthless without flawless execution.

Week 9-10: Implementation

• Complete contract signatures and regulatory filings
• Coordinate service transfers and account setups
• Set up monitoring systems for costs and usage

Week 11-12: Optimisation

• Monitor first month's results and address any issues
• Schedule regular reviews with your new supplier
• Plan future contract renewals and market evaluations
• Document lessons learned and process improvements

📊 Tracking Your Success: The Numbers That Matter.



After 90 days, you should be seeing real results. Here's how to measure success:

The Money Metrics

• Bottom line impact - How much did you actually save vs. last year?
• Unit cost improvement - Your cost per kWh should be measurably lower
• Budget predictability - Are your energy costs more stable and predictable?
• Avoided cost calculation - What would you have paid under your old contracts?

The Peace of Mind Metrics

• Service quality - Fewer billing errors, faster problem resolution
• Time savings - Less time dealing with energy issues
• Sustainability progress - Meeting environmental goals while saving money
• Risk reduction - Better protection from market volatility

📲 The Technology Revolution in Energy Buying.



The energy procurement world has transformed dramatically in recent years. We now have access to AI tools that help with:

Real-Time Market Intelligence

Instead of guessing when prices might be favourable, we can automatically track market conditions daily and time contract negotiations perfectly.

Automated Portfolio Management

Managing multiple sites and contracts used to require spreadsheets and prayer. Now we can track everything in real-time and get alerts when action is needed.

Advanced Risk Management

Sophisticated forecasting tools help predict price movements and optimise hedging strategies that protect against market volatility.

‼️ The Expensive Mistakes You Must Avoid.



In my fifteen years doing this work, I've seen the same costly mistakes over and over:

Timing Disasters

• Starting the procurement process two weeks before contract expiration
• Making decisions during market peak periods
• Ignoring seasonal price patterns that repeat every year

Negotiation Blunders

• Focusing only on price while ignoring contract terms
• Accepting the first offer without competition
• Forgetting to include flexibility for business growth or changes

Strategic Oversights

• Ignoring sustainability requirements that might become mandatory
• Not considering what energy markets might look like in 3-5 years
• Choosing suppliers based on price alone without considering financial stability

⏰ Why This Matters More Than Ever.

The energy market has changed dramatically. Price volatility is higher, regulations are shifting rapidly, and sustainability requirements are becoming mainstream business considerations.

Companies that don't actively manage their energy procurement are falling behind competitors who do.

But here's the opportunity: most of your competitors are still making the same old mistakes. They're renewing contracts out of habit, accepting whatever rates suppliers offer, and treating energy as an unavoidable expense instead of a manageable cost.

🎯 Your Next Move.

Every month you delay implementing a strategic energy procurement approach costs you money.

The companies we work with typically see payback on their investment within 90 days, with savings continuing for years.

The energy market won't wait for you to get organised. Prices change daily, contracts expire whether you're ready or not, and your competitors are already working to gain every possible advantage.

The CFO I mentioned at the beginning of this article? Six months later, we'd helped his company implement a comprehensive procurement strategy. Last quarter, he sent our team an email with the words: "Amazing! Thank you all, for the hard work and advice". His energy costs dropped 28% while his competitor is still paying those inflated rates.

Would you like to know more?

Do you have any questions about one or more of these topics?

Feel free to contact us at hello@bramoenergy.com.