Energy myths
Articles, background and perspectives from the NeoBid Academy.
Explore 10 articles ↗10 articles
Energy myth #10: green electricity is significantly more expensive
Green electricity need not be significantly more expensive. Property portfolios need comparable offers, reliable guarantees of origin and suitable contract terms. How competition, aggregation and PPAs inform the assessment.
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Energy myth #9: comparing the incumbent supplier’s offer
“The incumbent supplier makes the best offer.” That is too simplistic. Without competition, there is only one offer, not a market comparison, and renewal prices are often higher. Why convenience can cost returns and only competition between several suppliers reveals a fair price. NeoBid’s view of silent renewals.
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Energy myth #8: wait for falling prices or procure to a plan?
Waiting for falling energy prices does not replace a procurement plan. Six components help owners, asset managers and property managers procure electricity and gas with clear targets, deadlines and risk limits. Tranches reduce dependence on a single purchasing date.
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Energy myth #7: is annual consumption enough for a tender?
Annual consumption alone does not make a portfolio ready for tendering. Myth #7 explains five data components: supply points, market locations, consumption profiles, contract data and checked consumption values, as the basis for comparable energy offers.
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Energy myth #6: are tenders only worthwhile for millions of kWh?
Small supply points can also form part of professional energy tendering. Why aggregation within a property portfolio can enable competition and more efficient processes, and which conditions matter.
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Energy myth #5: are PPAs only for large corporations?
PPAs are an option beyond large corporations. How aggregated supply points can enable access, and why load profiles, guarantees of origin, total costs and long-term commitments are decisive.
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Energy myth #4: is spot electricity always cheaper than a fixed price?
Spot or fixed-price electricity procurement: consumption profiles, complete contractual costs and budget risks are decisive. Six criteria help determine a suitable procurement mix for a property portfolio.
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Energy myth #3: does the right purchasing date determine everything?
Purchasing timing affects energy prices, but the market low cannot be reliably targeted. Clear triggers, timely planning, market monitoring and suitable tranches make portfolio procurement transparent. What these rules achieve, and which price risks remain.
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Energy myth #2: is energy supply just price comparison?
A low unit rate alone does not make an energy offer suitable. Professional property portfolios also need data quality, contract terms, sustainability evidence and risk assessment. Seven components show how price comparison, digital platforms and strategic advice work together.
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Energy myth #1: does the tenant alone bear energy costs?
Even where energy costs can be passed on, owners remain economically affected. Vacancy, owners’ own cost shares, CO₂ costs and the total rental burden belong in portfolio management. The first article in the energy myths series examines cost metrics, letting effects and the legal framework in context.
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