Multi-site consolidation
Many manufacturers have sites on different suppliers, contract types and end dates, often because they grew by acquisition. Bringing them onto one agreement gives you:
- Better buying power, from tendering the whole volume at once
- One renewal date to manage, instead of a rolling cycle of deadlines
- Consistent pricing and terms across every site
- One consolidated view of consumption and cost by site
It also makes it much easier to apply levy exemptions consistently across every MPAN.
Running a proper energy tender
A renewal letter from your current supplier is not a tender. A good tender:
- Starts early, ideally 6 to 12 months before your contract end date.
- Gives every supplier the same data: half-hourly consumption, capacities and site details.
- Compares like for like, separating fixed and pass-through charges.
- Checks contract terms, such as volume tolerances, termination rules and pass-through clauses, not just unit rates.
Fixed vs flexible purchasing
Fixed contracts lock in one price for the term. They're simple and give budget certainty, but your price depends entirely on the day you sign.
Flexible contracts let you buy your volume in tranches over time, often with a floor and ceiling strategy, smoothing out wholesale volatility. They suit larger, steady loads where a few pence per kWh adds up to a lot. Many manufacturers use a mix, fixing a base and buying the rest flexibly.
Deemed and out-of-contract rates
If a contract ends without a new one in place, sites roll onto deemed or out-of-contract rates. These are often far higher than contracted prices, and they're charged until you sign something new. It's one of the most common and avoidable causes of a sudden jump in a factory's bill. A single estate-wide renewal date makes it much less likely.
Frequently asked questions
For manufacturing sites, start 6 to 12 months before the contract end date. That gives you time to gather data, approach the market and pick a good buying window.
They're the default prices a supplier charges when a business uses energy without a contract in place, for example after a contract ends. They're usually much higher than contracted rates.
Flexible purchasing generally suits larger sites with steady, predictable consumption, often above a few GWh a year. Smaller sites usually get better value from a well-timed fixed contract.
Yes. Most business suppliers offer multi-site or portfolio contracts that put several sites under one agreement, with aligned end dates and consolidated billing.