Energy Myth #8: Wait for Lower Prices or Plan Your Procurement?
Updated: 4 days ago
“Prices will fall eventually” is an understandable expectation, but it is not a reliable basis for buying energy. For owners, asset managers and property managers of professionally managed real estate portfolios, the more useful question is how to organise electricity and gas procurement so that budgets, deadlines and price exposure remain manageable when markets move unexpectedly.
Why lower energy prices are not a planning assumption
Energy prices respond to factors including geopolitics, weather, storage levels and the cost of power generation, including carbon allowances. An easing of one factor may relieve price pressure; new uncertainty may push prices up again. ACER’s 2026 market report examines the interaction between electricity and gas markets, alongside weather and supply risks.
The possibility of lower prices does not identify a dependable time to buy. For a real estate portfolio, the key questions are how much price exposure remains and how it relates to the available budget.
What a decision to wait can overlook
“Let’s wait a little longer” seems reasonable while a cheaper offer remains possible. At the same time, the existing contract moves closer to expiry. Without agreed decision rules, deliberate waiting can turn into procurement under time pressure.
A decision to buy later should therefore account for rising prices, internal approvals and the time needed for tendering and contract execution, as well as potential savings.
Six elements of a manageable procurement plan
Market monitoring: Follow developments continuously and compare offers for the same supply period.
Tranches: Where appropriate, spread volumes across several purchasing dates. This reduces reliance on a single transaction date, but does not guarantee a lower average price.
Target levels: Agree in advance which prices and terms will trigger a review or approval.
Deadlines: Start well before contract expiry and account for notice periods and internal approvals.
Budget and risk: Define budget limits and how volumes that have not yet been purchased will be managed.
Data: Prepare consumption and metering data so that offers can be obtained and assessed promptly.
Further reading: Why timing alone does not determine procurement quality.
How NeoBid supports implementation
NeoBid supports structured energy procurement for real estate portfolios through continuous market monitoring and purchasing in tranches at predefined target levels. The focus is a transparent, repeatable process aligned with the portfolio’s budget and risk requirements.
Whether tranches are suitable, and to what extent, should be assessed against demand, the procurement model and the options available under the contract.
Use agreed rules to guide purchasing decisions
An expectation of lower prices can form part of a market assessment. It cannot replace a procurement plan. Clear target levels, deadlines and risk limits support decisions even when markets move differently from expectations.
How prepared is your portfolio for its next energy purchase?
Discuss with NeoBid how contract deadlines, budget requirements and suitable purchasing steps can be brought together in one procurement plan.
