Finding the Best Electricity Supplier for Your Business
Finding the best electric company for your business impacts more than just saved revenue. The relationship between energy supplier and business owner should be formed tactfully, as you work together to identify opportunities to minimize cost and maximize efficiency. With so many factors to consider, finding the best electricity deal is easier said than done.
In this article, we’ve compiled all the information you need to compare electricity rates and business electricity providers to make an informed decision. Be sure to reach out to us directly if you would like to learn more about how Aggressive Energy can help you decrease your utility budget while increasing your energy efficiency.
Understanding How to Compare Electricity Rates For Your Business
Having to compare electricity rates can easily become a time-consuming burden on business owners. Electricity quotes aren’t always priced the same from company to company. To effectively compare electricity rates it’s important to understand how business energy suppliers price their services and the factors that influence the market.
Electricity Costs Vary By Region
The price of electricity by state tends to vary mostly due to a number of environmental factors. Whether or not you live in a state that has a deregulated energy market plays a big role as well. If your business is in deregulated energy state, the volatility of the market gives you more of an opportunity to negotiate pricing. However, energy costs vary from state to state regardless of whether or not the state has energy choice. Environmental factors like living somewhere naturally warmer than others or the natural supply of a specific energy source also play a large role in the fluctuating prices.
Compare Electricity Rates by Market
Like most things, the price of electricity is heavily dependent on the basic economic principle of supply and demand. Cost usually depends on how much energy you need, how much is available in your region’s market, and what kind of energy: Natural gas or electric power. Because the two power sources are measured and priced differently, we’ll break them down individually.
Natural gas
Gas market prices rise the most during the winter because many homes and businesses use natural gas to power their heaters. Thus, a higher demand obviously causes a higher cost. Gas can also produce electricity, which is used heavily in summer and causes a larger need for gas, though not quite as large as in the winter. Fall and spring are considered its “off-season” where demand is lower. Most natural gas suppliers use this time period to store any unused gas to create reserves for the winter, which can help relieve price fluctuations. The gas market is also more dependent on factors outside of the US because a lot of it is imported from other countries.
Electricity
Similarly, electricity rates rise during winter and summer months. Dissimilarly, electricity cannot be stored in the same way natural gas is. The process to store electricity is much more complex, which means the market doesn’t have reserves to draw from to help stabilize cost. However, electricity also has more local energy efficient sources that can be used to power it, which helps stabilize supply.
Being Prepared to Switch Electricity Providers
With all of these factors in mind, it’s important to assess if your business is ready to switch electricity providers. Remember this decision should be strategic, so don’t wait until the last minute to start researching. Here are some things you’ll need to look into before getting serious about switching suppliers.
Review your current contract
First and foremost, check the date the contract with your current energy provider is up. If you still have a while left in your contract, chances are there is a penalty fee if you choose to break it. Also, check what your starting energy rate was and note any price changes since then. Be sure to review what plan you’re currently using so you can accurately compare electricity rates to other providers. This will also help you identify what features you can and can’t live without.
Assess business energy usage
For a lot of small businesses the cheapest energy company is usually the favorable option, but not always. The best energy company looks different for every business, as energy usage varies across industries. Commercial energy will obviously require more electricity than small business energy. Work with your staff to assess which areas of your business are currently costing you the most money and why.
Finding a New Energy Supplier
Obviously, you want to be sure the energy provider you switch to is the right decision for the long term. The process of switching electric service suppliers is tedious, so be sure to do adequate research to ensure you’re not in the same position in the not-so-distant future. The following are the key factors to keep in mind while researching the best electricity deals for your business.
Reliability and experience
Like you, your electricity provider should be in this partnership for the long haul. You’ll need a company that’s stable, experienced, and proven they know how to help businesses in your industry succeed. An established provider will understand your business energy needs almost better than you do. Be sure to actually read each company’s “About” page on their website and check their reviews on platforms like Google and Yelp.
Energy efficient equals cost efficient
Besides saving the environment, one of the best things about the energy efficient movement is the fact that conserving energy actually helps businesses save money in the long run. The best electric companies know that energy conservation is here to stay, and how to help their customers implement it in their businesses. Be sure to keep this in mind when comparing electricity rates.
Strategic energy solutions and customer service
Anyone can make a good impression during the introduction stage, so how do you know who to choose? In order to choose the most impactful electric service provider, ask them how they plan to help you maximize the effectiveness of their service so that you can reduce expenses. Be sure to also ask about their customer support options and hours of operation. If an emergency happened, you’ll need an energy supplier who can offer immediate help no matter what.
The best electricity deal is the one that commits to educating you on eliminating risk and offers a customized solution specialized to meet your business’s energy needs. If that sounds like the deal for you, contact us today!