How it works What is wholesale energy purchasing? Why is this advantageous? How does it work in practice? Are savings guaranteed? How much does this cost?   Conventional tender style purchasing leaves clients at the mercy of the market on any given day as energy prices, since de-regulation, now fluctuate hourly. The supply of energy and the price you pay is divided into three main components. a) Generation - accounts for 70% of the final billed price b) National distribution - accounts for 25% of the final billed price c) Local distribution and billing - accounts for 5% of the final billed price In conventional tendering the main area for pricing flexibility is in area C and thus there is little room for manoeuvre. Purchasing direct from the wholesale market takes us to area A where 70% of price is generated and energy is purchased flexibly. Eg energy can be bought for delivery tomorrow, next week, the month, the year. Or out to 2014 - whenever the energy traders see an advantage.