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January 01,2023

Why Timing Energy Procurement Matters

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Understanding how energy procurement works can feel overwhelming, especially when prices shift without warning. One factor that often gets overlooked is the timing of energy procurement, and why locking in at the right moment can make a significant difference for your business.

Over the past few years, we’ve seen global events, extreme weather, and supply chain disruptions drive up wholesale energy prices. For commercial and industrial businesses, this volatility can lead to much higher operating costs if not managed carefully. That’s where timing energy procurement comes in.

Turning Market Insights Into Strategy

At Utilizer, our expert energy consultants help clients make informed decisions by continuously monitoring market trends and identifying optimal times to go to tender or lock in rates. While you can review market indicators like ASX Energy futures to understand forward pricing trends, we translate these insights into tailored energy procurement strategies that align with your business needs.

It’s not about trying to time the market perfectly—it’s about understanding market cycles and using data to make smart, strategic decisions. Even if you’re currently locked into a fixed contract, it’s often possible to forward contract your next agreement—securing future pricing now and protecting your business from potential price spikes.

Why Early Engagement Matters

Starting the energy procurement process early can give you a real competitive advantage. When you begin market engagement well before your contract ends, you have the opportunity to tender efficiently, compare outcomes, and avoid rushed decisions. Waiting until the last minute can leave you in a vulnerable position, limiting your options and leaving your business exposed to unfavourable pricing or terms.

What Makes an Effective Procurement Strategy?

Effective energy procurement isn’t just about chasing the lowest rate. It’s about understanding your expected energy usage, identifying any changes to your portfolio (such as new sites, closures or shifting consumption patterns), and knowing how much flexibility your business requires. A well-structured energy procurement strategy considers both price and fit—balancing short-term and long-term value and operational certainty.

Looking Ahead: Market Dynamics in 2025

As we move further into 2025—with continued investment in renewables, the rollout of grid infrastructure upgrades, and evolving policy landscapes—energy markets are set to remain dynamic. Global factors like proposed tariffs on clean energy imports and the outcome of the upcoming Australian election could further influence energy pricing and availability. Businesses that stay informed and act proactively will be better placed to manage risk and seize opportunities.

Make Energy Procurement a Strategic Advantage

In this environment, energy procurement can become a strategic tool—not just a line item on your budget. With the right advice, forward planning, and a clear understanding of the market, your business can build resilience and turn energy into a source of competitive advantage, not just a cost.

Need tailored energy advice?

Speak with our team of expert energy consultants to explore your options and start building a smarter energy procurement strategy today.