With natural gas prices that haven’t been this low in a decade and energy prices that are very competitive, now is the time for many businesses in deregulated regions of the country to consider renegotiating their current energy supply contracts for the long-term (and we know all too well, we’ve been very busy of late). But, what if you are new to the game and are unaware of the pros and cons of your options for energy procurement? Where can you turn to lay out the options and make a sensible decision that could save your company thousands of dollars? Well, look no further!
Choosing to enter the energy procurement market is very similar to investing money into the stock market. There are viable risks and rewards for each option, often depending upon your knowledge of market fluctuations and common trends in the short-term and long-term market. In the simplest sense, there are 3 basic options a business can use for energy procurement. Entering the market completely on your own, choosing to hire an energy consultant, or hiring a company like Legends Energy Group (or our partner, BidURenergy) to do the heavy lifting for you.
Purchasing energy on your own is not a new concept, nor is it an option that is overly difficult if you have the correct knowledge/technology at hand. The most challenging element, however, is taking all of the concentrated time and effort to acquire said knowledge. On average, it can take years of viable industry experience to perfect the processes and terminology of energy procurement. And once again, much like the stock market, the deregulated energy market can be very unpredictable. The key is all about timing the market to optimize the best rate for your company. While purchasing energy on your own is the most instantaneous of the three options, and that’s very valuable, an indecisive decision maker that takes an extra month, week, or even a day to make a final decision can ultimately cost your company a hefty sum over time as well. Conversely, deciding too quickly can have a similar after-effect if prices drop in the aftermath. Simply put, pricing is difficult to master.
If that responsibility appears to be too daunting, or takes too much time in your all-important work day, the option of hiring an energy consultant to oversee your energy usage is a decent option as well. Fact of the matter is that they will be knowledgeable about the aforementioned volatile energy markets and will assist your company in steering you in the right direction. There are many issues, however. For one, many energy consultants are one-man shows. Meaning, if they deal with the energy of dozens of companies it can be easy to be lost in the shuffle, not to mention they have limited physical resources/staffers to carry out your best interests. In addition, an energy consultant often does not have any owner or supervisor to critique their work. As a result, there are a lot of mediocre energy consultants out there that are more than eager to accept your pay and not live up to expectations. Simply put, it’s imperative to do your homework when it comes to weeding out the best analysts from the worst when choosing an energy consultant.
The last option involves coming to an intermediary company (i.e. Legends Energy Group, BidURenergy) to go about your energy pricing. I am obviously biased to this option, but let me explain why. Between the three options, an aggregation group easily has the most resources, staff, and capital to take on any company that is willing to participate. We’re able to compare numerous offers with a blind auction platform to find the best rates offered. In addition, we also work with the most suppliers across various regions with a team of energy analysts that are able to answer any question and solve any problem with a simple phone call or email. Using the stock analogy once again, going with a company such as ours is similar to investing your money into an established mutual fund. Sure, we admittedly do not have the quickest turn-around time of the three options in play, and while we require no out-of-pocket expenses…we do receive funding for our services. But in my opinion, those shortcomings are outweighed by the resources and expertise we offer.
At the end of the day, I hope that whichever decision your company makes when it comes to energy procurement, it will be a solution that works best for your operations. And with this advice, I hope that you will be able to better determine the path your company will choose to take.
BidURenergy is an industry leader in energy consulting services. Our website lays out how we can help commercial and industrial businesses save money by reducing their energy usage. From demand response to lighting upgrades, we guide large-scale companies to a greener future and greater savings. Click here for more information, or visit this link.