Energy start-up utilises procurement skills to get better deals

9 April 2015

A procurement professional has helped set up a start-up which seeks to enable better deals for residential energy customers by using purchasing skills.

Established by Jay Shodimu, alongside finance and IT and energy professionals, Energy Crowd, a collective energy switching company, seeks to secure gas and electricity contracts for residential customers using among various techniques, the tracking of wholesale prices of energy in commodity markets.

It aims to help customer manage the costs of energy by negotiating deals on their behalf with energy suppliers, and using a range of procurement tools, including zero-based pricing, supplier relationship management and tender evaluations.

Once enough people have signed up to the website – – the company will invite energy suppliers under contract to bid to supply gas and electricity to a group of customers (usually numbered in the thousands) that have similar requirements for the energy they buy, for example a desire for a fixed-term contract or energy sourced only from renewable sources.

A series of negotiation cycles will determine the winner of the bid, who will then win the contracts to provide energy for that particular group of customers.

“We're enabling energy suppliers to tailor their offering more specifically to what residential customers are looking for while providing an opportunity for energy suppliers to win new customers at minimal cost," Shodimu told SM.

In respect of residential customers, "the bigger the crowd [of customers], the bigger the bargaining position, the bigger the potential for customers to pay less for gas and electricity. The motto of the company is: ‘together we pay less',” he added.

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