Identifying a Cost-Effective Energy Management Strategy

Rising costs are a pain point for most businesses and organizations in 2022, and energy costs are no exception, with natural gas and electricity prices experiencing unprecedented market volatility. A variety of factors, both nationally and internationally, are contributing to high electricity and natural gas prices, and while many are out of your immediate control, what you can do is take a closer look at your current energy management strategy to identify opportunities to reduce energy usage and energy costs.

Creating Budget Certainty on the Procurement Process 

We’ll start with the basics: deregulation. Did you know that organization leaders in deregulated energy markets have the flexibility to create energy management strategies that align with community goals, budgets, and fiscal calendars? In a deregulated electricity market, while the utility still owns all the infrastructure and delivers the energy, you can choose to shop around and buy your electricity or natural gas from a licensed energy retailer that does business in your market. Competitive suppliers offer many options to tailor your energy buying strategy based on your personal or company goals and the utility is obligated to provide the same level of service to all customers if an outage does occur.

There are numerous benefits to energy deregulation and procurement, such as negotiating lower prices for electricity and natural gas, peace of mind provided with budget certainty, and a worry-free, fixed, all-in pricing, to name a few. Effectively managing energy supply contracts yields cost reductions and improved business performance. Despite these benefits, deregulation can sometimes lead to confusion and misinformation on your end, which stands to reason.  

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As a reminder, the energy markets have been extremely volatile in 2022, with 2023 shaping up to follow suite. For your members in deregulated states, it may be a good idea to take another look at your competitive energy supply options. Utilities in many areas of the country are warning their customers of significantly higher prices for the coming winter, more than doubling in some cases. There are unfortunately many bad actors in the energy brokerage space, so we also encourage you to remind your remembers the value of utilizing a trusted source. A no cost, no obligation call with our team is a great first step. Rest assured, if we do not see an opportunity for savings or improvement of your members’ current energy management strategy, we will advise them to stay the course. Best case scenario, they embark on a path to energy savings and improved energy management. Worst case scenario, they walk away knowing their organization is already on the right track. For your members not available for energy choice, do keep in mind that we can still advise on key strategies for improving their energy efficiency and sustainability efforts.

 Finally, please see our most recent edition of The Advisor, which includes the latest market updates.