Preparing your organization for energy market opportunities
Craig Wilson
President | [email protected]
If a huge opportunity in the energy-market appeared tomorrow, would your organization be ready to seize it?
One thing we often see with new clients is that they typically tend to want to wait until their current energy contract is expired before they start looking to lock in the next one.
HERE IS WHY IT IS BAD TO WAIT UNTIL THE LAST MINUTE
You become a market TAKER
You no longer have the luxury of capitalizing on buying opportunities because you will need to sign whatever is available. It’s literally like missing the hot stock because you weren’t watching the market.
Some of the most sophisticated clients we are working with are shopping as far out as 2 to 3 years ahead of present. These shopping patterns make you a market MAKER, with the luxury of waiting patiently to strike on the right opportunity for your business.
You can get heavily penalized by letting your contract expire
Most fixed price contracts roll over to a month
to month rate at the end of the term. These can
also come with a very high adder.
What’s an
adder?
In short, its margin.
They
essentially put you on an index rate and add a
significant margin.
You don’t want this.
WHAT DO YOU NEED TO DO TO BE PREPARED?
Entering the Energy Market doesn’t
happen
overnight
Sometimes
market opportunities present themselves in a
very short window. If your ducks aren’t in a row
BEFORE the opportunity presented itself you may
miss out on a great contract.
Here is a
checklist of what you want to have at the ready
so you are in the best possible position to
capitalize on beneficial volatility:
A defined energy strategy
- We are often shocked to learn that many businesses don’t plan their energy budget years in advance. They run year to year, often because (as outlined above) they rush the process and don’t think ahead. You need a comprehensive strategy that helps you set and achieve energy goals within budget
- Knowing your
risk tolerance
How much risk are you willing to take to achieve those goals? If your bill went up 20% how much would that impact your bottom line? It’s an important question we make sure that clients think through as we build a strategy together - Where do you
see your business in 5 years?
Are you planning to grow? How will that impact your energy usage? Could your business relocate? All very important questions to ask.
Suppliers competing for your business.
Competition results in lowers costs, period. Suppliers come in all shapes sizes, and flavors – you need to ensure that you have the RIGHT ones competing for your business that will maximize your chances of meeting your goals.
Reporting and Analytics
We often hear from new clients that in the past they had signed energy contracts with big hopes of savings, but found they had no real way to know if they were staying on plan. Your bill certainly doesn’t reflect much more than what you pay. Being able to easily report on operational costs and savings is an important tool in reporting to the organization and making future improvements. Having a plan is great, making sure it’s working is even better.
WE CAN HELP
This sounds like a lot, and it is.
The good news is that we can take care of all
of this for you.
Breakerbox can get you
completely ready to enter the market when an
opportunity arises, with no upfront
costs.
A quick chat with our energy
consultants can get your started.
We can
make sure that you have a viable strategy,
with suppliers at the ready, for when a
market opportunity arises.
Don’t know if
you need us? Is this still confusing? That’s
ok, give us a shout and we will answer any
questions you might have.
Live Chat
We are available to chat. Send us a quick message and we will get back to you instantly!