Chapter 5: Top Energy Procurement Myths and Misconceptions

Misconceptions about wholesale energy companies and private retailers abound. When you’re shopping for an energy retailer, the last thing you need is to have your initiatives thwarted by outdated, irrelevant or even non-compliant misinformation.

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The Top Five Myths of Energy Procurement

Let’s break down many of the myths of commercial energy purchasing:

1. Energy Costs Are Out of My Control

“Energy costs are out of my control. There are too many market variables and external factors at play for my business to make a real change.”

Truth: Depending on your business, energy prices can be a significant expense. While factors affecting the energy market may be out of your control, an effective energy procurement strategy can help you manage your energy costs. By working with you to understand your business’s needs, challenges and goals, professional energy retailers can help shape a custom energy procurement plan that helps control costs. In addition, detailed reports leverage analytics and offer real metrics to take back control of energy’s expensive yet essential price tag. It is in your control.

2. Energy Efficient Equipment is the Only Way to Cut Costs

“Commercial energy rates are skyrocketing. Real cost-savings can only be seen through a significant investment in energy-efficient equipment or an overhaul of operations, neither of which we have the budget for.”

Truth: While installing more energy efficient equipment is a great way to cut costs, it is not the only way. Customers have often found that retail energy supplier pricing is competitive and that services and support outshine the competition, especially when compared with their old utility company. Companies can save money by getting more competitive rates — plus save their staff from spending too much time tracking down invoices from multiple vendors. Dedicated representatives know your business and work proactively to help it thrive.

3. It’s Too Complicated

“Securing new energy plans is a commitment of resources we’re not ready for. No one has time to make sense of it.”

Truth: Energy procurement can be as complicated or as simple as you’d like it to be. Energy retailers and brokers provide a variety of service options designed to meet the diverse needs of their customers. If you’d like to be directly involved and analyzing everything, you can find a vendor to support you. If you’d rather have minimal involvement and just take the recommendations of your energy retailer or wholesale provider, you can do that as well. Don’t let perceived complexity scare you away from improved services and potential savings.

4. There’s No Better Alternative

“All we need are the utility companies. They control the grids, the power lines, and the maintenance, anyway.”

Truth: Commercial energy suppliers offer more services, more support and more tailored, around-the-clock procurement solutions, not just a handful of standardized packages. Plus, it never hurts to shop around.

5. Energy Retailers Are Just Middlemen

“Why introduce another party into the fold? Doesn’t it make more sense to work straight with the source — the utility company?”

Truth: Deregulation has broken down yesterday’s regional energy monopolies. More competition begets lower prices and higher quality of services. Partnering with a private energy supplier can save you money through more flexible contract terms, wholesale rates, greater financing and delivery options plus a dedicated account representative.

Reach out with your commercial energy procurement questions. We’d love to clear things up.

Chapter 4: The Most Successful Energy Procurement Strategies You Can Use in Your Business
Chapter 6: How Can Effective Energy Procurement Power Business Growth?

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