Tender for the purchase of energy in the exchange model, i.e. a way to optimize the costs of a public institution

Since the energy crisis in 2022, the cost of purchasing electricity has been one of the key expenses of many enterprises and institutions. Energy consumers purchasing under tender procedures covered by the Public Procurement Law (PZP), looking for opportunities to optimize costs, are increasingly willing to use innovative purchasing solutions. One such solution is the purchase of electricity based on the so-called stock market model.

Energy purchase based on the exchange model allows you to contract all or part of the volume at current market prices. The purchase is based on tranches indexed to prices from the Polish Power Exchange (TGE). Thanks to this solution, public institutions gained access to the wholesale energy market through an intermediary (seller) and can independently decide when and in what quantity they will purchase all or part of the volume they will consume in the future. This is a good solution - by spreading the purchase over a longer period, public institutions increase the likelihood of obtaining favorable prices.

Exchange purchase, available to customers who consume at least several hundred MWh of energy per year, increases the chance of generating savings compared to purchase at a fixed price, as it reduces the risks for energy sellers themselves. However, it should be remembered that this form of purchase is associated with the risk of an increase in stock exchange prices, which in the event of insufficient control of the purchasing process may result in higher final energy prices.

Conducting tenders for the purchase of electricity by entities subject to the PZP obligation is a process that requires not only in-depth knowledge of legal regulations, but also understanding the specificity of the energy market. Energy sales contracts under the exchange model, unlike the "traditional", fixed energy price, contain a formula according to which the final price is determined. Customers consuming larger amounts of energy may specify their requirements in the tender documents regarding individual conditions for the purchase of individual tranches (e.g. the maximum number of tranches and the minimum percentage of a single tranche). It is also standard to indicate the products available for purchase under a given contract. Annual contracts are most often used, and in the case of large customers, quarterly and monthly contracts are also used. Depending on the provisions of the contract, it is also possible to settle part of the volume on the Day Ahead Market (DAM), commonly known as the SPOT market.

Conducting the PZP tender procedure for the purchase of electricity based on the stock exchange model is a task that requires specialized knowledge and experience. When preparing tender documentation, it is best to specify the dedicated energy purchase mechanism expected by a given institution, indicating product solutions tailored to the characteristics of a given enterprise. If the entity purchasing energy on the exchange does not employ qualified staff, we recommend using the services of an experienced energy advisor who will help in carrying out the tender procedure.