Why Businesses Overpay for Energy and How to Stop

Why Business Overpay for Energy Energy is a critical operational expense for businesses of all sizes. Despite its significance, many

Why Business Overpay for Energy

Energy is a critical operational expense for businesses of all sizes. Despite its significance, many companies unwittingly or unknowingly overpay for their energy, often due to a lack of understanding about energy deregulation. So, why does this happen, and what can be done about it?

Understanding Energy Deregulation

In many states, energy markets have undergone deregulation. This means businesses and consumers are no longer restricted to purchasing energy from the local utility or a single utility provider. Instead, they can select from a variety of retail energy suppliers. These suppliers compete with each other, often leading to more competitive pricing and better service offerings. However, many businesses don’t harness the full benefits of this deregulated market.

Common Mistakes Businesses Make

Not Knowing About Energy Deregulation

The first and most common mistake is not knowing about energy deregulation or not taking advantage of it.  Every month, the U.S. sees over 500,000 new businesses.  Opening a new business is a lot of work, and many business owners overlook ways to save on energy costs simply by not knowing about energy deregulation.  

Lack of Market Research

Just because you can choose which energy supplier to get electricity from doesn’t mean any choice will do. Many businesses stick with their utility or original provider out of convenience or switch to a new one without thorough research, potentially leaving significant savings on the table.

I can’t tell you how often I could find better rates for a customer who was “already with a supplier” or was convinced they had the best rate simply because they had been with a supplier for years. 

Falling for Introductory Rates

Some retail energy suppliers might lure businesses in with attractive introductory rates that spike after a promotional period. Without reading the fine print, businesses can become trapped in costly contracts.

Not Monitoring Energy Consumption

It’s not only about the rate you pay but also about how much you consume. Many businesses don’t monitor their energy usage patterns, missing out on opportunities for efficiency and optimization.

5 Actionable Steps to Maximize Energy Savings in Deregulated Markets

  1. If you are in a deregulated energy market, take advantage of it. Look for lower energy rates, find better plans, and take the time to shop around.  If it seems confusing or you’re unsure which plan to choose or how to find lower energy rates, contact an energy consultant who can help you. 
  2. Research potential energy suppliers in your state. Look at their rates, contract terms, customer reviews, and any other relevant metrics. Compare them side-by-side to ensure you’re getting the best deal.
  3. Lock in favorable rates long-term.  What do I mean? Once you’ve found a competitive rate, consider locking it in for an extended period. This can shield your business from price fluctuations and give you a clearer picture of your future operating costs. Being willing to commit to a long-term energy agreement often opens the door to more competitive rates. 
  4. Consider getting an energy audit done on your building. Energy audits can give you a detailed look at where and how energy is consumed in your business. By identifying inefficiencies, you can take steps to reduce wastage, further reducing your bills.
  5. Stay Informed. Energy deregulation can be complex, and the landscape is constantly evolving. Stay updated with the latest news and trends in the energy market to make informed decisions.

Energy Professionals: Your Partner in Energy Efficiency and Savings

While navigating the world of energy deregulation can seem daunting, you don’t have to do it alone. At Energy Professionals, we specialize in helping businesses make the most of their energy choices. 

Our seasoned team has deep knowledge of the deregulated energy market, ensuring you always get the most competitive rates. Beyond just rates, we’ll work with you to optimize your energy consumption, identify inefficiencies, and recommend solutions. 

Contact us today if you’re looking to harness the full potential of energy deregulation, reduce your bills, and better manage your energy spending. Let Energy Professionals be your guide to energy savings and a sustainable future for your business. Contact us today!

James Lightning
Senior Editor, Energy Professionals 
(844) 674-5465

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