How we ensure energy tenders are transparent and fair

When selecting an energy supplier, businesses can turn to trusted consultants like Amber to ensure the process is competitive, unbiased, and fair. Fair energy tenders should prioritise transparency and integrity, but what does this mean in practice?

What is an energy supplier?

An energy supplier is a company that provides electricity or gas to businesses. They determine the rates, issue bills, and supply the energy itself. In the UK, there is a competitive market of suppliers, each offering various pricing models, contract terms, and additional services.

Why do businesses work with an energy TPI?

A third-party intermediary (TPI), like Amber, helps businesses navigate the complexities of the energy market. We tender to multiple suppliers on behalf of our clients and negotiate the best deals for their strategy. This helps to save time, money, and carbon where possible. However, our role goes beyond basic brokerage. We also ensure that every part of the process is fair, clear, and aligned with our clients’ needs and values.

Why is transparency essential?

Transparency is not just an added benefit; it’s the foundation of a fair tendering process. At Amber, we believe every client should understand exactly what they are paying for and why. Our clients can expect:

Clarity in commissions: Energy suppliers must disclose the commissions they pay to TPIs, but we take it a step further. We encourage our clients to establish a clear agreement upfront that details our fees and services.

Openness with suppliers: We believe in collaborating with suppliers. Sharing meaningful feedback about their offers helps build trust and results in better outcomes for everyone involved.

Equality in the process: Every supplier is invited to tender on equal terms. We don’t favour one supplier over another; instead, we base our recommendations on what best fits each client’s strategy and needs.

What does a fair tender look like?

A fair tender goes beyond merely finding the cheapest price, although cost is certainly important. It involves evaluating every aspect of the offer in context, for example:

Like-for-like comparison: Whenever possible, we compare supplier offers on a like-for-like basis. However, not all offers are identical; understanding the client’s priorities is crucial. For instance, if a business experiences unpredictable energy usage, a contract with more flexible volume tolerance may provide better value than the lowest rate.

Holistic approach: We consider service quality, sustainability credentials, and product features. It’s not all about the price. We aim to ensure our recommendations align with the client’s overall strategy, whether that focuses on carbon reduction, cost savings or energy resilience.

How can Amber help?

At Amber, we are dedicated to fair, transparent, and strategic energy procurement. We offer expert consultancy to help ensure your business has a procurement strategy that matches your risk appetite. Please reach out to discover how we can support you.