Benefits Of Hiring An Energy Consultant

Posted on April 1st, 2011 by

If you are having a tough time understanding all of the ins and outs of buying electricity, then you should strongly consider hiring an energy consultant.  Energy consultants offer a wide range of services and they understand that you have plenty of other things to do; like focusing on running other more important parts of your own company. Whether you are a small business or big corporation, your main goal is always going to be to focus on your core business. By hiring someone who’s a specialist in energy prices, you give yourself the relief that your energy bills are being handled with care.

Here is the process that you can expect when you hire an energy consultant. First, the energy consultant is going to take a look at your electric bills. They are going to, initially, take a look and see if you have any existing contracts in place. If you do, then the energy consultant will analyze your existing contract to see what terms he or she can improve for you.

If that person thinks that they can find a better deal in your market, then they will speak with you about those opportunities. Signing an authorization form with your energy consultant will allow that person to request the historical usage of your building(s) from your electric provider(s). They then will look at the meter’s account numbers and make sure that everything has been included in the historical usage information. Even though this is tedious work, it is very important to double check; the energy consultant will want to make sure that they know, with strong certainty, the range of energy that you consume on a monthly and annual basis. Once this information has been validated, then your consultant will begin approaching energy providers on your behalf.

Your energy consultant will ensure that all of the suppliers’ bids are apples to apples comparisons. This means that they will make sure that all charges are included inside of the energy price and that there are no hidden pass-throughs or surprises, like RMR, Congestion, or other ancillary charges. Once this has been reviewed, then the energy consultant will prepare a savings report that will show you your different options. The energy consultant will then discuss your savings report with you and report on whether there is an existing savings opportunity. They will work with you to pick a term and reserve the rate with your new supplier.

It’s important to understand that the pricing that you will see is will change daily, based on the commodity. This means that if you aren’t ready to make a decision that day, then in most cases, the price will be different when you are. The energy consultant will be able to get refreshes for you if you choose to wait weeks or months before you decide to pull the trigger. The market is going to move up and down all of the time. So, an energy consultant should have their eyes on the market and also be able to spot when there’s a dip in the market. If they do this correctly, then they will take advantage of the opportunity and present it to you so that you can purchase power at an attractive rate.

The right energy consultant for your company is going to be the one that makes you most comfortable about how their market knowledgeable, experience and relationships with energy providers will give you the best opportunity to achieve your energy procurement goals. It is important not to forget that finding the right energy consultant for your company will allow you to focus on issues that are more important to your company’s success.

Written by Josh Stern, President of JASMAHN Energy Consulting.

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3 People have left comments on this post

» YJ Draiman, Dir. of Utilities & Sustainability said: { Apr 3, 2011 - 03:04:51 }

Innovative solutions to energy efficiency
The last time Wall Street applied its best minds to the electric power industry, they brought us Enron, brownouts and wholesale-price-gouging in California, not to mention higher electric bills.
Now, not even 10 years later, they’re at it again: Private-equity buyout funds have set their sights on electric utilities. And the result will be? You guessed it, higher electric bills for you and me. As if inflation and the rising cost of oil and natural gas isn’t pushing our bills up fast enough already.
ALL THE MORE REASON – to implement conservation, energy efficiency methods and renewable energy sources.

Indoor air quality – sick building syndrome
Fresh Air intake, exhaust and ventilation enhance cleaner air and energy savings.

» YJ Draiman, Dir. of Utilities & Sustainability said: { Apr 3, 2011 - 03:04:26 }

“Paying for utility costs without using a Utility Auditor and Monitor is like driving a car at night with the lights turned off”
For all you energy, telecom and utility needs
“It is cheaper to save energy than make energy”
Cost Control Program
In many organizations the management of utility costs is not a top priority. Utility invoices are typically processed by accounts payable departments without any meaningful review or verification. Most management attention is devoted to the cost of labor and materials. Considering that energy and telecommunications costs can make up as much as 30 percent of an organization’s overall operating budget (depends on the type of business) – utility cost reductions, even the most modest ones, can significantly improve profitability.
To relieve businesses of the burden (i.e., time, expense and distraction) of developing and maintaining the resources and expertise to internally verify, validate and analyze utility expenditures, a utility auditor develops the “Cost Control Program”. This program is designed to identify and pursue potential refund and cost savings opportunities – reducing your utility costs and improving your profits.
Consumers and businesses pay billions of dollars in utility expenses, including electric, water/sewer, gas, telecom, cable/dish and steam. Also waiver of tax on production costs. Are you certain you and/or your business are paying the correct amount? What if it isn’t? Without an expert audit, you may never know if your business is due refunds, savings, and credits from overcharges that appear in a surprisingly large percentage of utility bills.
You may want to implement energy conservation and or install renewable energy system/equipment – take advantage of rebates, incentives and tax credits.
In an environment of rising interest rates, corporate managers need to protect cash flow by cutting containable costs. One often-overlooked area of potentially excessive operating expenses: corporate utility bills. Recent surveys suggest those bills may, in as many as four out of five cases, include overcharges or other errors.
YJay Draiman, Utility analyst

» Edward said: { Jun 6, 2011 - 05:06:32 }

There are some further thoughts here:

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