Energy Intelligence / Sub-Area

Energy Procurement & Cost Intelligence

Most facilities have little visibility into how much of their electricity bill can be managed through procurement strategy and how much is fixed by regulation. Energy Procurement & Cost Intelligence breaks the invoice into its components to show which cost can be reduced and how, and how different procurement options behave against market price.

Which facilities this is for

Facilities with high electricity costs that want to break down invoice components
Operations renewing a supply contract or comparing options
Facilities with flexible consumption exposed to market price volatility
Companies evaluating multi-facility or multi-meter invoices in a single frame

From Invoice to Decision

The analysis starts with the invoice itself: every component is separated, and which one is manageable is identified.

Data Inputs

The last 12 months of invoices (all components and line items)
15-minute / hourly consumption series
Current supply contract conditions
Tariff type and subscription group
EPİAŞ day-ahead market clearing price (MCP) series

Invoice line items are cross-checked against the tariff components in force; inconsistent items are flagged in a separate report.

Model and Scenarios

The invoice is separated into energy, distribution/system and tax/levy components
Procurement options (fixed, indexed, free market) are compared on the same consumption profile
The effect of market price scenarios on total cost is modeled
The consumption profile's sensitivity to price volatility is calculated

Deliverables

Invoice cost-component breakdown
Procurement option comparison matrix
Cost range under market price scenarios
A list of manageable cost items and priorities

Assumptions and Limits

The analysis depends on the accuracy of invoice and consumption data; a missing item or wrong subscription group distorts the result.
The procurement comparison follows the market conditions in force; future price is not guaranteed and is given as a scenario.
Most of the invoice (distribution, taxes, levies) is fixed by regulation; procurement strategy affects only the energy component.
The lowest unit price is not always the lowest total cost; profile and risk are evaluated together.

Common Mistakes

Looking only at the unit energy price and ignoring distribution, taxes and levies.
Choosing a procurement option independent of the consumption profile — a fixed price can be wrong for a flexible/shiftable load, spot for a flat, inflexible one.
Assuming reactive penalties, demand overruns and peak items are "small" and leaving them out of the analysis.
Deciding from a single month's invoice and ignoring seasonal variation.

Reference Frameworks

Tariff Regulation: Electricity Market Tariff Regulation — the framework determining tariff components and regulated items (EPDK).
Day-Ahead Market: The EPİAŞ market where the MCP forms; the source of market price impact and indexed procurement prices.
Eligible Consumer: The regulatory framework for the right to choose a supplier and the eligible-consumer limit.
Distribution System Charges: The EPDK regulation determining distribution and system use-of-system charges.

Methods

Invoice component breakdown analysis
Procurement option comparison (fixed / indexed / spot)
Cost modeling with MCP scenarios
Sensitivity and scenario analysis

Sample Analysis

Below, the cost components of a representative invoice and a comparison of three procurement options are shown. The shares and the assessment are illustrative; the actual analysis is done with the facility's 12 months of invoices and consumption profile.

Invoice Components and Procurement Options

Sample Scenario

Invoice cost components (sample share)

Energy and supply46%
Distribution and system use32%
Taxes, levies and other22%

In the example, about 46% of the invoice is the energy/supply component; procurement strategy can only manage that part. The remaining share consists of distribution, taxes and levies and is fixed by regulation.

Procurement option	Price predictability	Market risk	Suitable profile
Fixed price	High	Low	Flat consumption
Indexed (MCP+)	Medium	Medium	Partly flexible
Free market (spot)	Low	High	Flexible / shiftable

This is a sample scenario built on example invoice data; it cannot be used on its own for a procurement or investment decision.

Tariff and Invoice Analysis

The last 12 months of invoices and your consumption data are the only inputs to the analysis. We break them into components and set out, in a cost report, which item is manageable and whether your current procurement option fits your profile.

Request a Tariff and Invoice Analysis