Many organizations choose to work with energy brokers instead of energy consultants to buy electric and natural gas under the assumption that the energy broker’s access to energy suppliers and market knowledge will get them the best electric and natural gas prices with the best supply contract terms.
How do you know this is actually true?
How transparent is your energy broker, and what do you really know about their energy price decision process?
Following is a list of key questions your organization should ask yourself about your energy broker:
Do they fully know your business as an entity, understand your energy consumption patterns…
If not they can’t connect your procurement strategy to broader business objectives and will not be able to obtain the best product for your organization.
Does your energy broker carefully track energy market moves to recognize tactical buying opportunities, but to also offer expert analysis and renegotiate with energy suppliers?
Or do they simply wait until your energy agreements expire within 30-60 days then obtain pricing in order to retain the account?
Energy brokers likely tell you that they seek the best electric and natural gas prices from several multiple energy suppliers to get the best deal.
Do they also tell you that certain suppliers they deal with provide them with financial incentives if they place business with them?
That supplier may not offer the best price.
Generally energy brokers, on average, have 5-8 energy suppliers.
You cannot command the best price if you only work with a few energy suppliers.
Do they use the following…
Sealed Bid Process with 35-45 plus energy suppliers…
A Reverse Energy Auction Platform that has access to over 400 plus energy suppliers...
The more suppliers you have to compete on your business…… the lower your price.
Your energy broker needs a transparent energy procurement process that documents the various bids.
Do they offer...
Utility billing validation services, demand response programs, energy management intelligence software, battery storage, solar energy projects and cogeneration... to name a few.
By addressing these questions you will have a better idea whether your current energy broker is able to assist you in…
Obtaining the best electric and natural gas prices for your organization…
Assist in the development of a strategic plan for energy management…
Assist in new ideas and processes to reduce your energy usage…
Assist in developing environmental friendly energy strategies...
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