You might not be powering a mega “Death Star”, but Electricity and Gas costs are one of the major monthly invoices your business faces every month. At the same time since the deregulation of the energy marketplace these costs are probably the easiest to impact, with no more than a billing change to handle from an implementation perspective. So what are the top 5 things to consider when you are looking to and save some money on Energy?
When is the best time to look for low price Energy contracts?
Like any commodity, electricity and natural gas pricing fluctuates based upon supply and demand. So while supply can be significantly by any number of factors such pipeline status, worldwide political and regulatory conditions, regional weather and hurricanes etc…, demand is much easier to predict and is very cyclical in nature and as you can see in the diagram below the Spring and Late Fall have the lowest demand with little heating or air-conditioning requirements.
This low demand naturally drives down energy pricing and so you want to lock into your energy contracts in the Spring or if you miss the chance now then look again in Late Fall. The Key is to avoid doing so after the energy companies have jacked up their pricing to their higher “Summer Rates” which naturally account for the maximum demands of the summer (when your air-conditioners are running up your energy needs).
Does a Variable of a Fixed Rate contract make sense for your business?
Energy suppliers provide different pricing profiles to their customers, based upon their customers’ specific energy demands and tolerance to pricing fluctuations. Some businesses are more tolerant to fluctuations in energy costs and will take advantage of more significant longer term savings with a Variable Priced Supply. Others will want the security of knowing and being able to plan for a certain cost for their energy supply and will therefore be willing to pay a small premium for a Fixed Priced Supply over a given term. Determine your risk tolerance to significant pricing fluctuations and whether a Variable of Fixed priced contract makes sense for you.
Is reducing my energy supply price the only thing I can do to reduce my energy costs?
No. “Buying Smarter” or getting a lower price for your energy supply is just the first step in reducing your energy costs. It is however the easiest to implement.
Do I need to be at the end of my current contract to lock into a better rate with a new supplier?
Absolutely not. Energy companies will guarantee rates for a date in the future, so if your current contract doesn’t expire for another 6 months, that is no reason not to be looking for a better deal already.
USA Voice & Data can help you get the best pricing for your Electricity and Gas
Yes indeed, just as we broker telecom services, we also broker electricity and gas, so no need to run around yourself hunting for the best electricity or gas pricing. Just email a recent invoice copy to us at firstname.lastname@example.org (and your current contract if you are under contract) and we will do all the heavy lifting for you, pulling together a competitive supplier pricing analysis and enabling you to maximize your energy savings.