Buying energy for your business is vastly different from buying your office supplies. And making uninformed energy purchasing decisions can cost your company thousands, putting you at a disadvantage to your competition.
Avoid these 4 costly energy buying mistakes:
- Reviewing prices only when your current supply contract is coming to an end. Renewal time is not the time to think about your energy strategy. Energy markets are dynamic and complex, so the best pricing may not occur immediately before your current supply contract expires. Our most successful clients take a proactive approach by considering their next contract 1-2 years prior to the expiration of the current contract.
- Not having an ear to the market. Active market monitoring can result in securing your future energy contracts at the most opportune time. Working with an energy advisor who is in the market day in and day out enables your company to get a leg up on your competition by driving down energy costs.
- Not participating in a competitive bid process. Competition drives down pricing. If you are going direct to one third-party supplier for your energy contract it is very likely you will not receive the best price or contract terms. When suppliers know they are competing for your business, pencils will be sharpened to offer the best price possible.
- Handling your energy procurement in silo. Does your business have sustainability initiatives? Are you planning a plant expansion, production schedule change, or an energy efficiency project? All of these can affect your supply contracts and company initiatives. Crafting a holistic energy strategy will ensure alignment with business goals and objectives.
A strategic, proactive approach to energy buying needs to be implemented to be sure you’re not leaving money on the table.