A Flexible Energy Solution
Due to the fluctuating nature of energy prices, LG Energy is a huge advocate of flexible procurement — meaning we can stay on top of the all-too-volatile energy market for you, effectively manage risk, and ensure you reap the benefits of contract flexibility while simultaneously keeping your costs to a minimum. We pride ourselves on offering you 100% budget certainty, so there’ll be no nasty surprises down the line.
With LG Energy, you’ll receive all the advantages of price improvements in line with the markets, while maintaining control of your budget under a robust and defensible cap.
How Your Bill is Broken Down
When you receive your utility bill, roughly half of the cost is known as a commodity cost—this is the cost of supply, or what you’re paying for the actual power. The other half is made up of non-commodity costs, effectively the network and distribution charges, taxes and levies from the policy that get your energy to you.
Until very recently, you were only able to manage the commodity costs in your bill, while the non-commodity costs were set at a fixed price. Fortunately, LG Energy can now offer you a range of options when it comes to both sides of your bill.
Non-commodity contracts can be divided into fixed and pass through categories. Fixed price non-commodity costs allow you to achieve 100% budget certainty at a (usually) higher cost, whereas pass through costs allow you to pay the cost rate for your non-commodity billing which comes with the risk of sometimes paying more than a comparable fixed rate. However, with LG Energy’s expertise and careful analysis, we can help you to effectively manage this risk and keep you from paying more than you should.
Flexible Energy Contracts
Ideal for medium and larger companies with a high level of energy use, flexible contracts enable you to make multiple buying decisions for the entire contract based on the market. Because the costs you’ll pay are reflective of how the market changes, you can benefit from a downwards trending market as it happens, effectively saving you money on your utilities.
As with all flexible solutions, there is a risk of costs rising if the market price increases, however with careful risk management by LG Energy’s procurement team, we can help you minimise or mitigate these risks.
Fixed Energy Contracts
Fixed contracts allow complete budget certainty, as a price is agreed at the start of the process and then locked in for the duration.
Due to our experience and expertise in energy procurement and management, we believe that in most cases a flexible energy contract will provide the customer better value in the long run, as we can carefully monitor and analyse the market for you, changing our strategy as we gain new information.
For this reason, we don’t usually recommend fixed price contract for our clients who qualify for a Flexible product, however we will be happy to look at this option on an exclusive basis.
Water procurement, management and tendering are often forgotten about by other companies, despite it being of equal importance as gas and electric for most businesses.
LG Energy has access to a wide range of water suppliers and can provide you with the same level of service, negotiation and cost effectiveness in this department as we do across the rest of our services.
We will take all of your requirements into consideration when it comes to water, compare all offers and then provide full and thorough recommendations to you that will best serve your business.
Our relationship doesn’t end once we have agreed a suitable procurement strategy. LG Energy will be with you during every step of the process in order to support and assist you.
If you’d like to procure an energy contract with a company that will manage risk and achieve budget certainty for you, contact LG Energy today.
Initial Market Cap & Dynamic Market Cap