Is your business looking for a way to reduce expenses without compromising the quality of its products and services? Switching natural gas and electric providers could be the perfect solution.
By unlocking the full potential of the energy market exchange through the support of a commercial energy broker, you can successfully improve your company’s bottom line. The results can be seen almost immediately and will continue to boost the capital levels for many years to come.
Sound good? Here’s what you need to know about streamlining this crucial part of the business.
Your Guide To Switching Suppliers
If your business is going to change energy suppliers to get better rates on natural gas and electricity, it’s important that you do it in the right manner. Planning and preparation are the foundations of success in all aspects of the operation, and switching suppliers shouldn’t be any different.
Why Should You Consider Switching Electricity Suppliers?
Before making any decision that could affect the future of the business, you should analyze the incentives for adopting a new approach. When it comes to switching gas and electricity suppliers, the reasons are clear.
Finding the right plan from the right energy supplier will generate instant and monthly savings. The savings can be significant for homeowners, but commercial premises stand to save thousands of dollars each year. The benefits of doing so are plentiful and include:
- Reduced overhead improves profit margins
- Reduced overhead allows for greater flexibility in pricing strategies
- Promote further steps to streamline the use of your capital
- Gain peace of mind from knowing you’ve made the best choice
Which States Are Deregulated
Only the businesses that are based in deregulated states can truly take advantage of switching suppliers. Illinois is one of them, which is why finding energy consultants in Chicago can work wonders for the venture.
The states that offer deregulated energy are; California, Connecticut, the District of Columbia, Delaware, Massachusetts, Maryland, Maine, Michigan, Montana, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, and Texas. The remaining states are bound by traditional energy supplier regulations.
How Do You Switch Suppliers?
Before switching suppliers, it’s important to know how billing works. You have to factor in the Price per KwH, service charges, and taxes in order to make a calculated decision. If opting for a service that offers a great introductory price, you need to calculate and predict the overall expense of the whole contract or else you could end up spending more in the long run.
Having already checked that you are living in a deregulated state, it’s important to follow the right plan of action to switch supplier. Use this checklist for guidance:
- Find the list of all suppliers in the region and compare their various rates and plans. Be sure to check that any estimates and quotes are relevant and accurate.
- Weigh up the pros and cons of the available fixed rate and variable rate plans – we’ll discuss this further in a minute.
- If you need gas as well as electricity, it’s important to see whether suppliers can offer a combined deal that covers both services at a discounted rate.
- Call your existing supplier to see whether they can offer a better deal – if they show reluctance, do not be afraid to give them the quotes you’ve received from other energy suppliers.
- Using the best deal available, complete the switch. This can be done online or via the phone. Either way, be sure to test the prices from their direct service as well as comparison sites.
- After confirming the switch, you should call your former supplier to check that they have stopped their service and will not charge you any longer.
Once you’ve completed these steps, you can enjoy the cheaper rates without even realizing any change in terms of the service provided. Finally, you should make a note of when the initial contract with the new supplier ends. This is because an even better deal may be available once this time comes.
Using A Commercial Energy Broker
While the process is actually fairly straight forward in theory, the reality is that it’s a very time-consuming process. Moreover, if you do not have access to every supplier, it’s very likely that you’ll miss out on the best deals.
Using a commercial energy broker like Navigate Power is a far better solution, and brings a host of benefits to your company. These benefits include:
- A team of professionals with the knowledge to analyze all possible suppliers.
- A team of experts with the ability to negotiate better deals on your behalf.
- Save yourself time and hassle, letting you focus on your business.
- Peace of mind knowing that any deal that has been brokered with a legitimate supplier is safe and secures your savings.
When changing energy suppliers, finding the right energy consultant is the best solution for your finances as well as your sanity. Do not forget it.
Fixed Versus Variable Rates
When looking at energy rates, you will usually be offered one of two options – fixed rate or variable rate. A fixed rate uses a set price (per KwH) for the duration of the contract. Conversely, a variable rate means that the prices float. As such, the unit cost will rise or fall depending on the wholesale value at any given time. It is possible to find hybrid plans too, but they are far less common.
So, which option is right for you? Let’s take a look at the pros and cons of each
The reasons for wanting to choose a fixed rate energy supply include:
- If energy prices increase, you’ll benefit from being tied into the lower price.
- It’s easier to monitor the expected prices as you can simply multiply the unit price by KwH.
- The prices are set, offering far greater reliability and consistency to reduce your ongoing expenses.
However, it is necessary to consider the potential drawbacks too. Most notably there will be early termination fees for ending the contract early due to the fact that suppliers pre-buy the energy needed to match your needs. Of course, if energy prices go down, you’ll be left with the higher bill too.
Variable rate contacts can be attractive in various situations too. The benefits to variable rate contracts include:
- If prices fall, your rates will be adjusted to reflect this, which will work wonders for your overall costs.
- There are usually no costs for opting out of the deal, allowing you to keep switching for the best deals.
- You have the freedom to do as you please, which can be useful if a company treats you poorly.
However, the lack of reliability does make it difficult to predict the costs that you will face over a long-term period. Likewise, if the costs were to increase, this could have a serious impact on your cash flow and overall expenditure levels.
What Is A Utility Bill Audit?
Learning to audit your utility bill can be another key step towards achieving better rates and greater efficiency. This is a service that Navigate Power offers. It essentially records the necessary data relating to your energy usage before using this information to make calculated decisions for the future of your operations.
Furthermore, this type of service can often unearth the opportunity to seek refunds on various aspects of the energy and utility bill offerings through the use of the NUR (National Utilities Refund). This covers errors in rate codes, taxes and more. Refunds can be awarded for :
- Natural Gas
- Water & Sewage
- Telecoms & Cellular
- Internet & Data
With the opportunity to claim money back for up to the last three years, this is a very worthwhile addition indeed.
Switching your energy supplier can unlock a whole host of benefits on the financial front. Given how easy it is to make the switch through a professional commercial energy broker, you should no longer consider the idea of bidding on energy as a difficult task.
Capitalizing on the energy market exchange will save you time, money, and a lot of headaches without creating a negative impact on your office, store, or other commercial premises. Now is the time to make it happen.
Consult A Professional At Navigate Power
Navigate Power is a team of energy consultants in Chicago that prides itself on helping businesses like yours in their bid to get more from their energy budgets. We are a highly reputable provider that was named one of Inc. 5000’s Fastest Growing Companies in the United States and love nothing more than generating big energy savings for small and medium-sized businesses throughout the states of Illinois, Ohio, Pennsylvania, Massachusetts, New Hampshire, Delaware, Texas, plus others.
To discover how Navigate Power can transform your business for the better, call us now at 888.601.1789.
About Navigate Power
Navigate Power is a leading electricity and natural gas consulting firm, headquartered in Chicago, IL. Ranked no. 550 on the 2017 and no. 856 on the 2018 Inc. 5000 list as one of the fastest growing companies in the nation, Navigate Power continues to expand into new markets nationwide and currently manages over 30,000 commercial energy accounts and over one billion dollars in energy budgets.