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The price you pay for energy is not determined solely by your organization’s annual usage. Different factors like time of use, peak demand, credit, geography, number of meters, and market exposure all interplay to determine your price. If your broker doesn’t fully know your business as an entity, understand its energy consumption patterns, and can’t connect your procurement strategy to broader business objectives, then they can’t get you the best product.
It’s important that your broker carefully tracks market movement not only to recognize tactical buying opportunities, but to offer expert analysis and negotiate with suppliers. To get the best price with the best contract structures, your organization needs a team that stays in the market. Contact Apex Power today!
Your broker likely tells you that they seek pricing from multiple suppliers in order to find the best deal. It’s important to know, however, how many suppliers they engage. Many brokers are contracted to work with a select group of suppliers, leaving many others out of the discussion. Your broker can’t command the best market price if they only work with a handful of suppliers.
Many brokers will recommend that you renew with your existing supplier contract after contract. But because suppliers’ positions change daily, it’s very unlikely that the same supplier can offer the best price and terms each time you go to market. It’s a good sign that your broker isn’t getting a competitive price if they recommend the incumbent supplier year after year.
Maintaining energy contracts can become a real challenge if your organization has multiple sites or facilities. Your broker should provide a centralized contract management system that allows you and your team members to view all of your current energy contracts in one place.
Procurement is only one aspect of a comprehensive energy strategy. Other services to consider include utility bill validation and payments, demand response contracts, renewable and distributed energy consulting, and system peak predictors for demand management. You should engage your broker to better understand all of your procurement options, and how they tie back to your organization’s energy goals.