A long-standing relationship with an energy supplier simplifies many processes. It does not, however, answer whether its electricity and gas renewal offer is competitive. That requires offers on a common basis, with identical supply periods, consumption data and contract terms. For owners, asset managers and property managers of professional portfolios, this comparison provides the foundation for a transparent award decision.
Why incumbent offers should also be compared
The existing supplier knows your portfolio’s supply points, consumption and processes. Familiar contacts and established billing reduce coordination. This may favour renewal but does not replace checking prices, volume provisions and contract terms.
Comparable offers from other suppliers establish a benchmark for price and service. Alongside purchase price, administrative workload, data quality and reliable processes matter. A structured market comparison makes these criteria visible. The incumbent supplier may still provide the best overall offer.
Five criteria for a reliable offer comparison
Data basis: Use the same supply points, consumption volumes and load profiles for all offers.
Price reference date: Compare offers as of the same date or with comparable price fixing.
Supply period and procurement model: Compare offers for the same period and model, such as fixed price or tranches.
Contract terms: Assess price components, volume provisions, duration and notice periods transparently.
Operational implementation: Include billing, data provision and support in the decision.
Prepare tendering and implementation in good time
Start comparing sufficiently before the contract ends. Check notice periods and internal approvals to allow time for tendering and implementation. Complete metering and consumption data and timely procurement planning provide the foundation.
Further reading: A procurement strategy instead of waiting for the perfect purchasing date.
Support from NeoBid
NeoBid supports energy procurement for property portfolios with structured data and comparable offers from several suppliers. The incumbent supplier can be included in the competition. The comparison helps assess the overall offer best suited to the portfolio.
Renew, renegotiate or switch
A long-standing relationship and a competitive offer are compatible. Assessment using consistent data, periods and criteria is decisive. If the incumbent supplier performs well in comparison, renewal has a clear rationale. Otherwise, the comparison provides a sound basis for renegotiation or switching.
Would you like to assess a renewal offer?
Discuss with NeoBid which data and comparison criteria you need to evaluate your electricity or gas offer.
