Contract check
Article 4 of 14 · Portals, costs and contractsHow do I know if my energy contract is good?
Direct answer
You only know whether an energy contract is good once rates, volume, consumption profile, peak load, contracted capacity, risk appetite and operational plans are assessed together. A low rate is not automatically good if the contract does not fit your profile or future energy demand.
- Rates are only part of the story
- Profiles and peaks determine contract value
- Measured data strengthens procurement advice
- Contract choice calls for scenarios
Rate check versus data-driven contract assessment
Many businesses mainly look at price for energy contracts. That is understandable, but incomplete. The best contract depends on when you use energy, how predictable your consumption is, which peaks occur and which changes are coming.
- Do not assess a contract on bare rates alone.
- Use measured data to understand volume, peaks and profile.
- Link contract choices to operational plans, charging infrastructure and sustainability.
Focus
Traditional approach
Price per kWh, gas price and fixed costs.
Modern approach
Price, profile, volume, peaks, risk and future plans.
Data
Traditional approach
Annual consumption and invoices.
Modern approach
Quarter-hour values, site profiles and cost impact.
Advice
Traditional approach
Comparing offers.
Modern approach
Determining which contract fits actual usage.
Outcome
Traditional approach
Possibly a lower price on paper.
Modern approach
A better-substantiated choice for cost and risk.
Which signals make a contract good or less good?
A good contract fits your actual consumption and risk profile. Discrepancies arise when annual volume, peaks or operational changes were not properly taken into account.
- Volume matches actual consumption.
- Profile fits the rate and contract form.
- Peak load and contracted capacity are logical.
- Risk and flexibility suit the organisation.
Why is measured data important?
Measured data shows when energy is used. That makes visible whether annual consumption is representative, which sites deviate and which peaks can be contractually relevant.
- Recognise daily, weekly and seasonal profiles.
- Find deviating sites or periods.
- Link peak moments to contracted capacity.
- Prepare procurement advice better.
When should you review your contract again?
Review your contract again with strong cost increases, expansion, electrification, charging infrastructure, production adjustment, relocation or change in opening hours.
- New charging points or electric processes.
- Growth or shrinkage of sites.
- Unexplained invoice differences.
- Expiring contracts or market volatility.
Curious what this looks like with your own data?
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