When it comes to managing your business’s overheads, energy costs can make up a significant portion of your expenses. Shopping for a commercial energy rate isn’t just about finding the cheapest offer; it’s about understanding your energy needs and making informed decisions. Here are five essential things to consider when shopping for a commercial energy rate:
1. Find a Reputable Energy Broker
Navigating the energy market can be daunting. A reputable energy broker can be an invaluable resource. They have the expertise and market knowledge to guide you through the various options and can help you make sense of the complex energy landscape. They work on your behalf to find the best rates and plans that suit your business’s specific energy requirements. When choosing a broker, look for those with a good track record and positive customer reviews.
2. Know the Utility Price to Compare
Before diving into the different offers, it’s crucial to understand your current utility price, often referred to as the “price to compare.” This is the default rate your utility company would charge for energy supply. Having this figure in mind gives you a baseline to compare against the rates offered by different energy suppliers. Knowing the price to compare helps you to make an apples-to-apples comparison and determine if switching suppliers will indeed be cost-effective for your business.
3. Explore Options with Suppliers
Don’t limit yourself to the first offer you receive. Energy suppliers often have different plans and rates, so it’s important to shop around. Explore options from multiple suppliers to ensure you’re getting the best deal. Each supplier might offer different incentives, contract terms, or green energy options, so take the time to evaluate what’s on the table comprehensively.
4. Shop for the Right Type of Plan
Energy plans aren’t one-size-fits-all. Your business’s energy consumption pattern should influence the type of plan you choose. For instance, if your energy usage is consistent, a fixed-rate plan might be more beneficial. However, if your usage is variable, an indexed or block + index plan might be more suitable. Understanding your energy usage pattern helps you choose a plan that aligns with your business operations, potentially leading to cost savings.
5. Negotiate the Terms of the Contract
Before signing any contract, it’s imperative to thoroughly review and understand the terms. Look out for details about the contract length, cancellation fees, and any clauses that might lead to price changes. Don’t hesitate to negotiate terms that better suit your business needs. Sometimes suppliers are willing to make adjustments to secure your business. It’s also wise to have a legal professional review the contract to ensure there are no hidden clauses that could be disadvantageous to your business.
Need Help Shopping For Energy?
Shopping for a commercial energy rate is more than just looking for the lowest price. It’s about finding a plan that aligns with your business’s energy usage, understanding the market, and making strategic decisions. By taking these five key points into consideration, you can make more informed choices that could lead to significant cost savings and a more streamlined energy management strategy for your business.
Our team of energy professionals has over 100 years of combined energy experience. We can help you explore your energy options and find the best rate and plan for your business. Contact us today!