Whether you are a small-business owner or the CEO of a Fortune 500 company, you know the importance of making every dollar count. Many companies waste money on common energy contract mistakes and don’t realize it.
Here are some common mistakes and how to avoid them:
Do Your Research!
When searching for the best energy contact, time spent researching the right fit will pay off. All energy companies and contracts are not created equal. One thing to consider is which companies in your area have the best reputation for service and affordable pricing. Choose a reputable, long-lasting supplier so you can have confidence they will be there for years to come.
Get The Most Competitive Offers
Part of doing your research is getting many bids to compare. A common mistake is to get bids from only two or three companies and then go with the best one of this limited sample. Instead, Energy Professionals can help you get the most competitive offers in your area. With your location and service type, we can ensure you are getting the best deal.
Read The Fine Print
Once you’ve chosen the best energy supplier for your needs, look over the contract carefully. It is common these days to just click “agree” or sign a document without reading everything. After all, who has the time to read pages and pages of details? This is a case where time invested now has the potential to save money in the long run.
Will your rates go up if national or regional energy rates fluctuate? Is there an early termination fee? Will energy outages affect your rates? Read the fine print and find out.
Though energy usage can at times be unpredictable, you can often foresee periods of heavy usage and plan accordingly. Does your air conditioning run steadily all year, or is it likely to increase during the summer? Does your company put up a large holiday display using many lights during the winter months? Are there other events or conditions that will increase your usage temporarily? If you think ahead, you can ensure your contract is designed to accommodate these times.
Fixed Vs. Variable Rates
Energy companies will usually offer either fixed or variable-rate contracts. There are advantages and disadvantages to each depending on your company’s individual needs.
With a fixed-rate contract, your monthly energy bill will be predictable, allowing for certainty in your monthly budget. If energy prices go up, your fixed rate protects you from a budget increase for the duration of your contract. However, if energy prices drop you will need to wait for the end of your contract to take advantage of the lower rate.
A variable-rate contract allows lower energy prices to take effect immediately. However, increases in energy market rates will affect your energy bill negatively. In addition, variable rates can make budgeting for energy costs unpredictable. Planning ahead (as discussed earlier) can help to mitigate this as a factor.
Know When Your Contract is Going to Expire
It is important to know when your energy contract is set to expire. Sometimes contracts have a clause allowing a change to variable rates if your fixed-rate contract expires. Know your expiration date and start researching options beforehand. Energy Professionals can help ensure you always receive the most competitive rates.
The Best Energy Contract is Easier to Find Than You Think
Energy Professionals focuses on energy management by using audits and software data analytics, and by identifying energy-saving strategies and opportunities. We can help ensure you have an energy contract that best fits your business’ needs. Contact us today to get started.Read More ›