What is energy procurement?
It is the process of buying electricity and gas on contract terms rather than taking the offer your retailer puts in front of you. In practice, it means analysing your consumption, choosing when to go to market, running a competitive tender, negotiating the price and the contract terms, and then managing the switch. The goal is to secure cost-effective and reliable contract protections.
When should I go to market for electricity?
Your broker should have your contract expiry dates logged and be monitoring the market, so they can come to you when market conditions are favourable. Starting the process 12 to 18 months before expiry gives you time to assess the market and wait for the right window, rather than being forced to take whatever is available when your contract expires. Going to market early gives you more flexibility and, importantly, the ability to say no and come back when conditions improve.
Why do rates vary so much between retailers?
Retailers price against their own position in the wholesale market, their view of your load shape, and their current interest in your business. Two offers for the same site in the same week can differ by a wide margin for reasons unrelated to you. That variation is the whole argument for running a tender.
What actually happens in an energy tender?
We build a consistent brief and consumption data pack, share it with a panel of retailers, and receive offers that are easily comparable. We negotiate on price and terms, then put a like-for-like comparison in front of you. You choose. We handle the paperwork and the transition.
How do you get paid?
You don’t pay us directly. Once a contract is signed, the retailer that wins the tender pays our fee. Every retailer pays the same fee, so which one wins makes no difference to us, and we recommend the offer that is strongest for you. The fee is calculated on the energy you use and never on the non-energy parts of your bill, such as network charges, environmental schemes, market operator fees and metering, which can make up around half of the total. On larger sites we can reduce it to keep the final price competitive.
Do you handle gas as well as electricity?
Yes. We tender both, and across a portfolio it usually pays to run them together so the expiry dates line up instead of drifting apart and forcing you to market at whatever the price happens to be. Sites with heavy gas load, retirement living and aged care in particular, tend to get the most out of doing the two at once.
How much energy is a kWh, MWh, and GWh?
Simple way to think about it:
- kWh (Kilowatt Hours) -> Used for homes and individual appliances. This is the standard unit you’ll see on residential electricity bills.
- MWh (Megawatt Hours)-> Used for small commercial buildings, industrial facilities, or measuring energy output from smaller power plants.
- GWh (Gigawatt Hours) -> Used for large commercial assets, cities, major power stations, or regional annual energy consumption.
Why do energy rates vary so much between retailers?
Because every retailer values load differently. Factors like your usage profile, solar export, operating hours, and risk all affect the deal. The more we can understand your usage, the more we can help.
What actually is an energy procurement tender?
It’s a competitive process where multiple energy retailers are invited to submit pricing and contract offers. By creating competition, retailers are encouraged to put forward their most competitive rates and terms, helping customers secure better value.
Can I save money if I already have a broker?
Potentially, yes. Not all procurement strategies are the same. The difference is usually in retailer relationships, timing and strategy.
What’s the biggest mistake businesses make with energy?
Letting contracts roll onto out-of-contract rates. Many businesses end up paying significantly more than they need to because no one notices the contract has expired.
Can large property groups negotiate better energy deals?
Yes. Portfolio aggregation is powerful. By aggregating multiple sites into a single procurement process, large property groups can increase their buying power and attract more competitive offers from energy retailers.
How do I get a property portfolio review?
Send Active Utilities a recent energy bill for each asset as a starting point for us to do a complimentary review.