How Your Business Can Save Money on Energy in Deregulated Markets

There are many ways to save on your energy bills but the first that come to mind might including installing LED bulbs, choosing energy efficient appliances, and performing regular maintenance on HVAC systems. However, there is another way to cut your business’ energy costs in a big way. In deregulated markets, take advantage of your power to choose an energy supplier in order to secure the best rate available on your energy. Deregulated markets provide highly competitive, low prices, from the top suppliers in the industry.

With deregulated markets, customers who opt to change their power provider will still get their energy delivered through the same poles and wires, and may even still receive the same bill each month. The only thing that changes is where the money the customer pays for their electricity generation. If the customer chooses to switch from the local utility’s generation service to another power provider, the portion of their monthly bill going to power generation will also go to that power provider. In deregulated areas, customers are able to choose who supplies their energy often allowing them to select the lowest rates available in the market.

Fixed Rate: A fixed rate will remain the same for the duration of the contract. This option is usually cheaper month-to-month

Variable Rate: A variable rate will change based on market conditions, making it nearly impossible to predict your bill. This can be especially concerning if you are locked into a long-term plan

Which plan you choose depends greatly on your business’ circumstances and requirements, a short term plan may provide the best savings for one business. while a long term-plan will be better for another. Here is a quick outline of what these options entail:

Short Term: A short term rate provides contract lengths of 3 months, 6 months, or even month-to-month options. These plans typically all last less than 12 months. The good news, you will likely see lower rates with this option. The bad news, depending on your location’s forecast, you could end up having to renew your plan at higher rates if it falls in a high demand season.

Long Term: Lock in your rate for 1, 2 or 3 years, you can get a great rate for years to come by choosing a long-term plan. Generally, a long-term plan will offer the best value for the average consumer. The good news, this option is less of a hassle, no need to renew energy contacts and shop rates every few months. The bad news, if energy prices drop, you might be stuck paying more for your electricity than the industry average.