Energy Myth #9: Comparing Your Existing Supplier’s Offer
Updated: 4 days ago
A long-standing relationship with your energy supplier can make day-to-day operations easier. It does not, however, establish whether its electricity and gas renewal offer is competitive. That requires offers prepared on the same basis: identical supply periods, consumption data and contractual terms. For owners, asset managers and property managers of professionally managed real estate portfolios, this comparison provides the basis for a transparent supplier selection decision.
Why existing suppliers’ offers should also be compared
Your existing supplier knows your portfolio’s supply points, consumption and operating processes. Familiar contacts and established billing procedures reduce coordination work. These can be good reasons to renew, but they do not replace a review of prices, volume provisions and contractual terms.
Comparable offers from other suppliers provide a benchmark for price and service. Alongside the energy purchase price, administrative effort, data quality and reliable processes also matter. A structured market comparison makes these criteria explicit. Your existing supplier may still submit the best overall offer.
Five criteria for a meaningful offer comparison
Data: Use the same supply points, consumption volumes and load profiles for every offer.
Pricing date: Compare offers priced on the same date or with comparable price-fixing arrangements.
Supply period and procurement model: Compare offers for the same period and model, such as fixed-price or tranche-based procurement.
Contractual terms: Assess price components, volume provisions, contract duration and notice periods transparently.
Operational delivery: Include billing, data provision and ongoing support in the decision.
Prepare the tender and implementation in good time
Start the comparison well before the current contract ends. Check notice periods and internal approvals so there is enough time for tendering and implementation. Complete metering and consumption data, together with timely procurement planning, provide the foundation.
Further reading: Procurement strategy rather than waiting for the perfect buying moment.
Support from NeoBid
NeoBid supports energy procurement for real estate portfolios with structured data and comparable offers from several suppliers. The existing supplier can be included in the tender. The comparison helps assess which overall offer suits the portfolio.
Renew, renegotiate or switch
A long-standing relationship and a competitive offer are not mutually exclusive. What matters is an assessment based on the same data, periods and criteria. If the existing supplier performs well in the comparison, renewal has a clear rationale. Otherwise, the comparison provides a sound basis for renegotiation or a switch.
Would you like to assess a renewal offer?
Discuss with NeoBid which data and comparison criteria you need to assess your electricity or gas offer.
