How do we procure our energy supplies?

Muircroft works with our energy broker Northern Gas and Power (NGP) to procure our gas and electricity contracts.

Ensuring tenants get value for money

NGP Global Energy Procurement | Northern Gas and Power provide a neutral tendering process following the steps below-

  • Tender energy requirements across 56 suppliers to benchmark pricing.
  • Analyse current contracts against prevailing market rates.
  • Recommend the most appropriate procurement strategy — fixed, flexible or a combination.
  • Negotiate supplier margins and contract terms.
  • Regularly review the market to identify future purchasing opportunities.
  • Benchmark energy costs across properties or tenant groups.

This approach ensures tenants can be confident that their energy costs are being competitively procured rather than simply accepting a supplier's renewal price.

  • We use a flexible purchasing strategy, which means energy is bought at different points throughout the contract rather than all on one day. This helps us take advantage of lower market prices when opportunities arise and reduces the risk of buying all energy during a period of high prices.
  • NGP continuously monitors wholesale energy markets and purchasing opportunities on our behalf throughout the life of the contract. This active management aims to secure better prices than would normally be available through a traditional fixed-term renewal.
  • All supplier invoices are independently checked to identify billing errors, incorrect charges or contract discrepancies. Recovering any overcharges helps ensure tenants only pay the costs that are genuinely due.
  • Detailed consumption and cost information allows us to identify unusual usage patterns and opportunities to reduce energy consumption, helping to control costs over the longer term.

Checking that Muircroft is billed correctly

NGP provide ongoing bill validation and invoice auditing, including:

  • Checking unit rates against agreed contract prices.
  • Checking standing charges, taxes, levies, and non-commodity charges.
  • Reviewing meter readings and estimated consumption.
  • Identifying incorrect tariffs or charges.
  • Checking supplier invoices against contractual terms.
  • Investigating discrepancies directly with suppliers and recovering overcharges where appropriate.

This approach ensures that any billing errors are identified early, reducing the risk of Muircroft being charged incorrectly by the supplier.

Reducing carbon emissions

NGP support carbon reduction through:

  • Analysis of consumption patterns and energy efficiency opportunities.
  • Identifying unusually high consumption across properties.
  • Supporting renewable electricity procurement.
  • Advising on solar generation and how it can be incorporated into the purchasing strategy.
  • Providing consumption and carbon reporting.
  • Identifying opportunities to reduce consumption rather than simply purchasing cheaper energy.

This approach helps Muircroft better understand where energy is being consumed and where practical carbon reductions can be achieved.

Protecting tenants from energy price spikes

This is where our energy broker's expertise adds significant value.  Rather than waiting until a contract expires and purchasing everything at one point in time, Muircroft use a flexible purchasing strategy to optimise lower buying positions in the wholesale market.

  • Monitor wholesale electricity and gas markets continuously.
  • Develop a forward purchasing strategy.
  • Purchase energy in stages where appropriate.
  • Use flexible procurement to spread purchasing across different market periods.
  • Set agreed risk parameters and purchasing triggers.
  • Monitor geopolitical, supply and demand factors affecting prices.
  • Review the balance between price certainty and market opportunity.

This approach helps us protect tenants from having their entire heat network energy requirement exposed to a single adverse market event or sudden price spike.

Providing management data to inform service charge billing

NGP provide Muircroft with a range of data to help us manage our energy contracts. This can include:

  • Half-hourly and non-half-hourly consumption.
  • Individual meter performance.
  • Scheme energy costs.
  • Actual versus budgeted expenditure.
  • Consumption and recharge data.
  • Contract prices and renewal dates.
  • Carbon emissions.
  • Invoice and billing information.
  • Consumption trends and anomalies.

This data is presented through regular management reports and performance dashboards, allowing Muircroft to understand our consumption and costs.