Have you resolved to lower your company’s cost structure in 2021? If so, what are you doing about energy costs? Take advantage of best available energy prices using the 360 Energy Procurement Calendar.
January: Calendar year electricity contracts start this month. You’ll also typically receive final invoices for the previous calendar year contract. It’s a great time to review your energy use and energy costs for 2020. Now’s the time to set 2021 price targets.
February: The first bills for any calendar-year contracts start arriving. Review them. Ensure you are being billed correctly. 360 Energy has caught issues with supplier invoices in the past. For customers in Ontario’s Union gas franchise, February is the month for load-balancing. Stay on top of your pool position so you can balance when pricing is favourable.
March to June: Electricity and natural gas prices tend to dip during the milder spring periods. Consider hedging if prices are attractive.
July to September: Many natural gas contracts run from October through November. Prepare your consumption forecast for the upcoming contract period. Once it’s complete, start locking in any remaining commodity and transport.
October: This is the month for any last-minute load-balancing for expiring natural gas contracts. If prices are attractive, it’s also the time for last-minute commodity procurement ahead of the November start date.
November: This is the natural gas service start date for much of North America. Finalize electricity supply for any outstanding calendar year contracts expiring on December 31.
December: Review natural gas bills from November contracts for correctness.
This 360 Energy procurement calendar applies to the most common Calendar Year or November 1 contract start dates we see. If these start dates don’t apply to you, use these principles to develop your own calendar:
- Data review: At the end of any contract, review your data for both pricing and consumption. Learn whatever lessons you can.
- Bill review: At the start of any new contract, review the bills for completeness and correctness. Catch and address supplier errors early.
- Forecast: Use your historical data and production changes to proactively forecast consumption in the next contract period.
- Monitor Markets: Keep an eye on forward markets for your next contract period. Lock in early if prices are right.
360 Energy wishes you every success with your 2021 energy procurement resolutions! Call us if we can give you a hand.