Energy markets are becoming ever more unpredictable and traditional methods of purchasing, such as fixed price contracts are becoming increasingly risky. To manage this volatility, WME's market specialist monitors market prices and key drivers on a daily basis enabling us to purchase both gas and electricity when the price is right.
Our key offering which is undertaken by the majority of our customers, is fully flexible procurement. This has been designed with our customers at the forefront. Our market research has found that financial priorities within the public sector tend to be for long term risk management and budget certainty, as delivered through our innovative, risk managed strategy.
Budget certainty is delivered to customers through an innovative capped price mechanism.
Our capped price gives a maximum price per kWh that our customers will pay for the next financial year. Once the price is set, our fully risk managed strategy allows us to continue to trade energy within the financial year where we are able to secure benefits should wholesale prices drop. Where we secure gains from the market, we pass these back to our customers through discounts off the capped price throughout the year. If wholesale prices increase through the year, customers are protected by our capped price.
Benefits of flexible procurement:
Our energy procurement is supported by a third party consultant and governed by our ‘flexible energy advisory panel’ which is made up of representatives from our four member authorities.
WME have a fixed price, fixed term framework in place which allows us to go out to several chosen suppliers for gas and electiricty utilising mini-competitions.
Benefits of fixed procurement:
All WME supplier contracts are awarded following a fully OJEU compliant procurement process.