Avoiding Common Energy Procurement Pitfalls

How to Stop Hidden Mistakes from Costing Your Business Thousands

For many large energy users, energy procurement is one of the most significant; and most misunderstood; commercial processes. Between fluctuating market prices, rising non-commodity costs, and new policy-driven levies, even small oversights can quickly translate into major financial and operational consequences.

Energy procurement for large UK businesses is increasingly complex. With volatile wholesale markets, tightening regulations, and sustainability expectations, even experienced teams can fall into costly traps. Avoiding these pitfalls requires careful planning, accurate data, and a structured procurement approach.

At Inteb, we often support clients who’ve learned the hard way that energy buying isn’t just about chasing the lowest rate; it’s about data, timing, and strategic alignment.

This insight explores the most common procurement pitfalls we see;  and how to avoid them.

“Spotting Energy Procurement Mistakes early can save organisations significant cost, risk, and operational disruption.”

1 – Focusing Only on the Unit Price

It’s easy to think that the cheapest price per kilowatt-hour (p/kWh) equals the best deal. But price is only one piece of a much larger cost puzzle.

In reality, over half of a typical business energy bill now comes from non-commodity charges such as network costs, balancing charges, levies, and capacity fees. Two contracts with identical p/kWh rates can result in very different total costs once these elements are factored in.

How to Avoid It

• Evaluate the Total Cost of Energy; including TNUoS, DUoS, Nuclear RAB levies, the Climate Change Levy (CCL), and supplier margins.
• Understand your load profile, as peak demand periods drive higher network and capacity charges.
• Compare service quality, flexibility, and billing accuracy alongside pricing.

Inteb Insight: A 1–2% difference in service quality or billing accuracy can easily outweigh a 0.1p/kWh saving on unit rates.

“Improving data quality is essential for avoiding Energy Procurement Mistakes that lead to higher costs and supply risks.”

2 – Poor Data Accuracy and Missing Supply Information

Inaccurate or incomplete data is one of the most common; and most costly; procurement mistakes. Missing MPANs, inconsistent consumption data, or outdated MOP/DC/DA details can delay tenders or create reconciliation issues months later.

How to Avoid It

• Validate every supply point and meter before going to market.
• Ensure MOP (Meter Operator), DC (Data Collector), and DA (Data Aggregator) contracts are current and reliable.
• Maintain accessible, consistent AMR (Automated Meter Reading) data across all systems.
• Regularly reconcile consumption history across sites to spot anomalies early.

Tip: Procure MOP/DC/DA and AMR contracts independently from your supply agreement. This often reduces cost, improves control, and makes supplier switching seamless.

Inteb Insight: Separating data and metering contracts can reduce total service costs by up to 10% while enhancing flexibility.

“Hidden debts and account errors are some of the Energy Procurement Mistakes that quietly increase business costs.”

3 – Overlooking Debts and Account Issues

Suppliers assess financial stability before issuing rates. Businesses with outstanding balances or poor payment histories often face inflated prices or are asked to provide large security deposits.

How to Avoid It

• Pay invoices on time and maintain a strong credit record.
• Resolve billing disputes before tendering.
• Keep accurate, up-to-date internal records across all sites and accounts.

Inteb Insight: Clean accounts don’t just build trust; they directly impact your supplier risk rating and procurement pricing.

“Failing to account for operational changes or future building needs is one of the Energy Procurement Mistakes that can increase long-term costs.”

4 – Ignoring Future Growth or Building Changes

Energy procurement should reflect where your organisation is going, not just where it is today. New sites, operational expansions, or electrification projects can significantly alter your energy demand profile.

How to Avoid It

• Include growth forecasts and planned operational changes in demand modelling.
• Review procurement strategy annually, not just at contract renewal.
• Use scenario planning to test different usage outcomes.

Inteb Insight: Many businesses overpay for capacity or under-secure supply simply because their procurement failed to consider future operations.

“Selecting the wrong contract structure is one of the most common Energy Procurement Mistakes that can expose businesses to unnecessary cost and risk.”

5 – Choosing the Wrong Contract Type

Fixed, flexible, or hybrid; each contract structure carries distinct advantages and risks. Selecting the wrong one can expose your business to unnecessary volatility or missed opportunities.

How to Avoid It

• Assess your organisation’s risk appetite and budget certainty needs.
• Explore hybrid contracts; often the ideal balance between stability and flexibility.
• Seek independent advice before committing to a structure.

Inteb Insight: A hybrid strategy; fixing 70–80% of load for budget certainty while flexing the rest; gives many large users the best of both worlds.

“Failing to manage non-commodity charges is one of the most expensive Energy Procurement Mistakes businesses make.”

6 – Neglecting Non-Commodity Cost Management

More than 50% of an average business energy bill now stems from non-commodity costs, such as network fees, levies, and capacity charges; and these are expected to rise further in 2025/26 and beyond.

How to Avoid It

• Monitor upcoming changes like the Nuclear RAB levy (from Nov 2025) and TNUoS/DUoS forecasts. Model their impact on total cost.
• Track reactive power penalties and review site capacity levels to ensure efficient operation.
• Shift flexible demand away from peak periods.
• Explore on-site generation or demand-side response schemes to offset grid costs.

Inteb Insight: Proactive management of non-commodity elements can deliver savings equivalent to a 5–10% reduction in wholesale energy rates; often with less risk.

“One of the most costly Energy Procurement Mistakes is relying entirely on brokers without clear oversight or verification.”

7 – Relying Entirely on Brokers Without Oversight

Energy brokers can add real value; but ultimate accountability sits with the end user. Without clear governance or transparency, businesses risk paying hidden commissions or signing contracts that don’t fit their strategy.

How to Avoid It

• Request full commission disclosure from brokers.
• Retain ownership of data validation and decision-making internally.
• Ensure broker recommendations align with your risk, sustainability, and governance frameworks.

Inteb Insight: A good broker should complement your procurement strategy; not replace it. Transparency and accountability are key.

“Tendering at the wrong time remains one of the most common Energy Procurement Mistakes businesses make — and one of the most expensive.”

8 – Tendering at the Wrong Time

Energy markets fluctuate daily. Tendering during a volatile or high-price period can wipe out months of preparation and erase potential savings.

How to Avoid It

• Monitor wholesale trends and tender strategically during stable periods.
• Consider layered or rolling procurement for large portfolios.
• Work with advisors who track pricing and regulatory windows daily.

Inteb Insight: Timing can account for a 10–20% swing in energy costs; often more than the value of contract negotiation itself.

“One of the most overlooked Energy Procurement Mistakes is failing to properly manage energy contracts after signing — and it can cost businesses far more than they expect.”

9 – Forgetting About Contract Management Post-Sign-Off

Procurement doesn’t end when the ink dries. Missed renewals, billing errors, and poor supplier performance can quickly erode savings.

How to Avoid It

• Check billing accuracy regularly and reconcile against consumption.
• Set clear KPIs for supplier service and responsiveness.
• Maintain a rolling review cycle to prevent unwanted auto-renewals.

Inteb Insight: Continuous monitoring and validation can recover 2–5% in overcharges; a direct return on proactive management.

“One of the most costly Energy Procurement Mistakes today is overlooking ESG and sustainability objectives—an error that can damage compliance, reputation, and long-term cost control.”

10 – Ignoring Sustainability and ESG Objectives

Energy procurement is now central to corporate ESG performance. Overlooking sustainability targets risks compliance issues and reputational harm.

How to Avoid It

• Embed sustainability and carbon goals in your procurement policy.
• Explore REGO-backed renewable supply, PPAs, and on-site generation.
• Track and report Scope 1 and 2 emissions to meet ESG obligations.

Inteb Insight: Aligning procurement with carbon strategy enhances brand value, supports compliance, and builds investor confidence.

Not Planning Ahead

The Pitfall: Waiting until contract renewal or the winter season to act leaves you exposed to market and policy shocks.

How to Avoid It: Review contracts early, forecast future costs, and model scenarios for high-demand periods.
Early preparation is critical to avoid surprises from policy-driven levies or sudden market spikes.

“Have more questions about avoiding Energy Procurement Mistakes? Our experts are here to help you reduce risk, cut costs, and buy smarter.”

Final Thoughts: Get Your House in Order

Successful energy procurement doesn’t start with market timing; it starts with good housekeeping:
✔ Accurate metering and data
✔ No outstanding debts or disputes
✔ Clear governance and accountability

Whether you manage procurement directly or through a broker, visibility and control are essential. A structured, data-driven approach allows large users to reduce costs, manage risk, and future-proof their energy strategy.

At Inteb, we help organisations do exactly that; combining market intelligence, technical expertise, and sustainability insight to deliver procurement confidence and long-term value.

We help clients:

• Focus on the total cost of energy, including non-commodity elements.
• Maintain accurate data, clean accounts, and governance frameworks.
• Select the right contract model; fixed, flexible, or hybrid; based on risk, capacity, and portfolio complexity.
• Integrate energy, efficiency, and sustainability planning to reduce exposure and improve outcomes.

With careful planning and active management, businesses can avoid costly pitfalls, manage rising costs, and build resilience in an evolving energy landscape.

👉 Get in touch to discuss your next procurement cycle:
https://weareinteb.co.uk/contact