Procurement
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Samuel Stevens
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7 min read

When an energy consultant or broker suddenly closes, the first reaction is usually panic.
That is understandable.
Many businesses rely heavily on their broker or consultant to manage contracts, supplier relationships, flexible purchasing, invoice validation, reporting, renewals and market advice. If that support disappears with little or no notice, it can feel as though the whole energy position has become exposed overnight.
The supply may continue, but control may not
The good news is that physical energy supply will usually continue.
The bad news is that commercial control may not.
That distinction matters. In most cases, the electricity or gas contract sits between the customer and the licensed supplier. The broker or consultant may have arranged the contract, managed the relationship, provided advice or handled trading instructions, but they are not usually the company physically supplying the energy.
So the lights should stay on.
But that does not mean everything is fine.
The real risk is what sits behind the supply contract. Who knows the contract end dates? Who has the latest invoices? Who understands the purchasing position? Who knows what volume has been bought, what remains open, and what the agreed strategy was? Who has access to the supplier portal? Who is checking the bills? Who is watching the market?
Those are the questions that matter.
This is particularly important for larger energy users on flexible contracts. A fixed contract may still need review, but a flexible contract normally requires ongoing management. Purchasing decisions may need to be made during the contract. Volume may be bought in blocks. Risk limits may have been agreed. Market triggers may have been set. Reports may have been going to finance or senior leadership.
If the consultant disappears, the contract may remain live, but the management framework can vanish.
That can leave the business in an uncomfortable position. It may not know whether it is fully purchased, partly purchased, or materially exposed to the market. It may not know who is authorised to instruct the supplier. It may not know whether an upcoming purchasing window has been missed. It may not know whether the last market report was advice, a recommendation, or an instruction waiting to be actioned.
That uncertainty needs to be dealt with quickly.
First, rebuild the control file
The first priority is not to run a full replacement tender for a new consultant.
The first priority is to regain control.
In the immediate term, the business should create a simple energy control file. This does not need to be elegant. It just needs to be complete enough to stabilise the position.
It should include:
All electricity and gas suppliers
Contract start and end dates
Site list, MPANs and MPRNs
Latest invoices
Current prices and contract structure
Whether contracts are fixed, flexible, pass-through or hybrid
Any renewable certificates or green tariff arrangements
Any open procurement activity
Any known purchasing positions
Supplier contact details
Existing letters of authority
Any reporting, invoice validation or compliance activity handled by the consultant
Contact suppliers directly
The next step is to contact each supplier directly.
Do not assume the supplier has the full picture in a form that is useful to you. Ask them to confirm the contract position in writing. For a fixed contract, this should include rates, term, site list, payment terms, pass-through arrangements and renewal dates.
For a flexible contract, the questions need to go further.
Ask what volume has been purchased. Ask what remains open. Ask what products have been bought. Ask whether there are any upcoming decision points. Ask who is currently authorised to trade or provide instructions. Ask whether any instructions were pending. Ask what happens if no further action is taken.
This is not about blaming the supplier or the previous consultant.
It is about establishing facts.
Check authority and access
At the same time, the business should review authority. If the previous consultant had a letter of authority, portal access or permission to deal with suppliers, that should be reviewed. In some cases, access may simply lapse. In others, the business may need to revoke or replace authority formally.
This is a governance point, not just an admin point.
If nobody knows who is authorised to act, decisions can stall. If too many people assume someone else is managing it, nothing happens. If internal teams start issuing inconsistent instructions, the position can become worse.
For the first few weeks, simplicity is valuable.
Nominate one internal owner. Create one document. Contact suppliers. Confirm the facts. Capture the risks. Decide what needs urgent action and what can wait.
Immediate risks versus medium-term lessons
The immediate risks usually sit in four areas:
Market exposure on flexible contracts
Contract renewals or pending tenders
Invoice validation gaps
Loss of data, reporting or compliance evidence
The first two are commercial. The second two are control issues. All four can become expensive if ignored.
Imagine a large property portfolio with half-hourly electricity across multiple sites. The broker had been managing flexible purchasing and providing monthly reports to finance. The broker closes suddenly. The client still has supply, but nobody internally knows how much of next winter’s volume has been bought.
That is not a supply emergency.
It is a risk management emergency.
Or imagine a manufacturer whose gas contract is due to expire in three months. The consultant had been preparing the renewal, but the tender was never issued. The business may now be late to market, with less time to engage suppliers properly and fewer options if market conditions move.
Again, the problem is not that the gas stops flowing.
The problem is that the business has lost time, visibility and leverage.
Outsourcing support is sensible. Outsourcing memory is risky
Once the immediate position is stabilised, the medium-term work begins.
This is where the business should step back and ask a more uncomfortable question. How dependent were we on one external adviser?
There is nothing wrong with using a consultant or broker. Good advisers can add real value. They can bring market access, technical knowledge, supplier relationships, invoice validation, trading support and challenge. But the client should still retain enough internal visibility to understand its own position.
At a minimum, a business should always hold copies of its contracts, invoices, site lists, meter details, purchasing reports, renewal dates, supplier contacts and authority letters. It should also understand, at a basic level, what strategy has been agreed and what decisions are coming.
Outsourcing support is sensible.
Outsourcing memory is risky.
In the medium term, the business should decide whether it needs a replacement consultant, a temporary stabilisation review, or a different operating model altogether. For larger energy users, especially those with flexible purchasing, it may be sensible to commission an independent review of the current position before appointing someone to take over ongoing management.
That review should answer a few practical questions:
What contracts are live?
What risks are currently open?
What decisions are due in the next 30, 60 and 90 days?
Are invoices being billed correctly?
Is the purchasing strategy still suitable?
Is the supplier relationship working?
Is the business holding enough data internally?
Does the governance model need to change?
The aim is not to overreact.
The aim is to avoid sleepwalking.
A consultant or broker closing suddenly does not automatically mean the business is in trouble. But it does expose how much control the business really had.
For some organisations, the transition will be straightforward. Contracts are fixed, invoices are accessible, suppliers are responsive and the renewal dates are known.
For others, the closure may reveal a much bigger issue. Missing data. Unclear authority. Unmanaged flex positions. Weak reporting. Poor invoice visibility. No internal ownership.
That is the real lesson.
Energy procurement should never depend entirely on one external relationship. The adviser can manage the process, but the client should always retain control of the position.
When a consultant closes, the first job is to stabilise.
The second is to understand.
The third is to build a better control model for the future.
Because in energy procurement, the risk is not always that something suddenly goes wrong.
Sometimes the risk is discovering that nobody quite knew what was happening in the first place.
Samuel Stevens
Samuel Stevens is a Director of Prime Procurement, an independent energy procurement consultancy helping organisations make clearer, better-informed energy decisions. When he is not working through energy contracts, supplier tenders or market strategy, he is often attempting to make jam, with varying degrees of success.
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