Customized Electric Procurement Strategies
Investing time to learn how a prospect uses energy, is time well spent and can alter an energy procurement strategy that delivers greater value. Knowing how a prospect uses energy can make a world of difference when developing a custom energy procurement strategy.
For example, one of our lighting partners had installed an LED retrofit lighting solution for a plastic manufacturer. They then introduced NJGEC as procurement experts that could provide additional savings. When first introduced to this particular client, they were engaged in 3r d party supply contract for electricity. Electricity was brokered through one of the electronic platforms with a March 2017 renewal date. In January we were asked to provide a competitive quote. After reviewing their load profile and conducting a utility bill audit, we went out to bid and delivered a competitive quote. The quote had a March start date, providing less risk and greater savings over a 24 month term. Most noteworthy, our savings analysis showed our quote $30,000 below the utility and almost $17,000 below the electronic platforms best rate. The client was amazed and simply asked, “Where do we sign?”
The NJGEC Difference
Signing this agreement seemed like a no brainer. Most of our competitors would have handed them a pen and pointed to the signature line. Instead, we asked them to indulge us for a few minutes. We explained that our utility bill audit showed a large amount of their energy usage was during the summer months. They explained what we already knew. They print on plastic and it requires cool temperatures with low humidity. The ink can run or bleed if it is not printed in the proper conditions, so they need the extra power as they explained. Our sourcing strategy was to present a very low rate for an eight month term and delivering additional savings of $4,000. Reducing their supply cost by another 4k made them extremely happy. As a result, we are now locked into a great rate for a shorter period of time.
NJGEC monitors the energy markets and will present this client with a second agreement. The second agreement will match or beat the quotes originally presented for the 24 month term. The energy procurement strategy of presenting the lowest energy rate for the longest period of time does not work for every commercial energy customer.
Is your business positioned properly in today’s energy market? To find out, contact NJGEC today at 973-287-7797 or firstname.lastname@example.org for your customized energy review.