With people in the UK still struggling with the cost of living, housing associations are under increasing pressure to reduce operating costs while continuing to provide affordable living for their tenants.
One often-overlooked area that holds significant potential for savings is energy procurement. By working with an energy expert or broker, housing associations can secure better energy deals, reduce overheads, and ultimately pass on those savings in the form of lower bills for tenants.
Why energy procurement matters
Energy costs make up a significant portion of a housing association’s operational budget. With fluctuating market prices, varying contract terms, and complex tariffs, managing these costs without in-depth knowledge of the energy market can be challenging and costly.
Poorly managed or auto-renewed contracts can lock housing providers into high rates or uncompetitive terms. On the flip side, strategic energy procurement can lead to long-term savings and better budget predictability.
The role of energy experts and brokers
An energy expert or broker acts as your trusted guide through the energy market. Here's how they can help:
1. Access to wholesale market rates
Energy brokers work closely with suppliers and have access to broker specific prices. They can secure bulk-buying discounts, especially when negotiating energy for multiple properties at once.
2. Market timing and risk management
Energy markets are volatile, with prices influenced by global events, weather conditions, and supply/demand shifts. An energy expert can monitor these trends and advise on the best time to buy—whether it’s locking in a fixed price during a dip or opting for a flexible contract when rates are expected to fall.
3. Tailored procurement strategies
Every housing association is different. Brokers consider the specific energy consumption patterns, property types, and tenant demographics to design a custom procurement plan, helping you avoid one-size-fits-all contracts that don’t reflect your real needs.
4. Contract management and avoiding pitfalls
Energy contracts are often filled with jargon and hidden clauses. An experienced broker knows what to look out for and can help you avoid costly penalties, rollovers, or unnecessary add-ons.
5. Budget forecasting and reporting
With clearer insights into future energy costs and usage trends, housing associations can budget more effectively. Some brokers even offer tools and dashboards that provide real-time monitoring, helping you track savings and identify inefficiencies.
Benefits for housing associations and tenants
The financial benefits of expert-supported energy procurement go beyond the association’s bottom line. Here's how it directly benefits your tenants:
- Lower utility costs: Savings on procurement can be passed on to tenants through service charge reductions or subsidised tariffs.
- Greater energy transparency: Improved reporting and communication help tenants understand their usage and make more informed choices.
- Support for fuel-poor households: Efficient procurement can help housing providers offer energy schemes that protect vulnerable tenants from fuel poverty.
Getting started: What to look for in a broker
When choosing an energy expert or broker, consider:
- Experience in the housing sector
- Transparent fee structures
- Independent supplier access
- Ongoing support, not just at contract renewal time
Ask for references, case studies, and a clear breakdown of how their services will directly add value to your procurement process.
Energy procurement doesn’t have to be a guessing game. With the right expertise, housing associations can make smarter buying decisions, reduce their operational costs, and create more affordable living environments for tenants.
Engaging an energy expert or broker isn’t just a business move; it’s a strategic partnership that helps your association become more efficient, sustainable, and tenant-focused.
If you're looking to save money on your energy bills then why not get in touch today? The relationships Resolve Energy has developed with over 24 of the UK’s biggest business energy suppliers allows our energy experts to source the best business energy rates available for your company right when you need them. Request a free quote today and start saving money on your energy.
