Can you change the price you pay for energy and other utilities? (Even after you have had your invoices checked and double-checked?)
Contrary to popular belief, you absolutely can. We have been successfully lowering these costs for large companies for the past 18 years.
But how can you change the price of what you pay for utilities?
Let’s start with the basics.
There are two critical components of any utility charge that are helpful to understand:
1. The infrastructure that delivers the commodity to you
2. The commodity you are buying – electricity, gas, water, etc.
Let’s start with infrastructure because that is where we usually have the most impact.
There are four ways our practice lowers infrastructure costs for large clients:
1. Rates
These are the formulas or algorithms that calculate your invoices every month. Buried in the confusing utility “rate sheets” are often costs that don’t apply to your type of business.
2. Risk Analysis
A surface level or conceptual analysis of risk will not do. You have to assess your current level of risk accurately first. Then compare that with options that may save you money. Launch a detailed investigation into the factors that either elevate or diminish your true incremental risk.
3. Riders
These charges show up as line items on your bill to recoup the utility’s cost to deliver electricity, gas, or water to your facility. Understanding who must pay them will require time and energy to understand. It takes time because your utility rep probably won’t understand them either. Often there are options for savings that are not obvious.
4. Regulatory charges
Taxes and other charges meant to pay for societally mandated costs as well as reimbursements (such as hurricane clean up) may or may not automatically be something you must pay. It always pays to check and not just assume charges apply to you. Do not accept them simply because they sound official.
The tangle of programs offered by utilities and government entities are confusing and contain a lot of bureaucratic wording. It takes time and patience to ferret out the details.
The commodity itself also offers opportunities to reduce costs. Electricity and gas, for example, are actively traded and often can be purchased on the open market if your state has that option.
There is a lot that can be done to lower costs. You must treat your utility expenses like any other expense category. That means not accepting the status quo, digging until you find answers and working aggressively on any and all potential cost reductions.
Contact us today to start lowering your business’ utility costs.[/et_pb_text][/et_pb_column][/et_pb_row][/et_pb_section]
