You can gain more control over your energy budget, and avoid potential price spikes this winter. MTI members are well-advised to closely examine gas and electricity prices now because prices are at 10-year historically low levels.
How many electricity suppliers do you evaluate when considering supply contracts? More than 80% of middle-market electricity customers evaluate only two or three electricity suppliers before making a selection, according to a survey conducted by the Energy Research Council (ERC).
If you evaluate only a few suppliers, how do you know if quoted prices are low, high, or average? What if you leave three cents-per-kilowatt-hour (kWh) on the bargaining table? Would you know? Evaluating only two or three suppliers is likely an inadequate sample. For a heat treater that consumes one million kWh annually, the cost difference between the lowest and highest supplier price quote could be $50,000 per year.
Electricity consumers appear to be getting smarter about procurement. The majority (56%) of ERC survey participants responded that they want help evaluating, ranking, and selecting energy suppliers. ERC surveys conclude that less than half of respondents renewed with their incumbent supplier the last time they procured an electricity supply contract. Of those survey participants that selected a new supplier, 88% cited “price” as their primary reason for switching.
Since 2001, MTI has endorsed APPI Energy to provide data-driven procurement and consulting solutions to members. If you have questions about suppliers or supply contracts, or if you want to learn more about how to manage and reduce energy costs, contact APPI Energy at 800-520-6685.