Energy Procurement Position

Why it is Important to Evaluate Your Energy Procurement Position

Businesses need to continuously evaluate their energy procurement position.

Energy deregulation has been a tremendous success in New Jersey and many other states, paving the way for companies to constantly be aware of their energy procurement position. It has created jobs and has significantly reduced supply costs through open market competition. Energy costs impacts the bottom line and is critical to the financial performance of any business. New Jersey Green Energy Consultants (NJGEC) stands behind our philosophy “efficiencies first, the cheapest kilowatt is one not used”. Sometimes efficiencies can be as simple and costs free as changing human behaviors, however LED lighting, building automation and solar all provide strong ROI, but require capital investments.

A company’s electric and natural gas rates are determined based on two factors, usage and rate class. NJGEC educates clients on the energy market and procurement strategies that best fit your load profile. Often it is not about the rate, but how your business uses energy. A professional energy procurement strategy can provide the cost savings for your business to generate the capital need to invest in the appropriate efficiency improvements.

Frequently, business end up in the wrong energy contract due to misleading sales practices.

One of the problems with energy deregulation is that it has created a competitive market. Under qualified sales people are heavily marketing energy which gives the industry a bad stigma. This is not to undermine anyone, but just to caution businesses that receive numerous cold calls, emails and social media solicitations promoting energy savings through lower introductory rates.

Working with someone that knows the market and can professionally help manage your energy budget is always a plus, but you would be surprised by the number of people that do not seek help. Many people think the rate is the most important factor, but there is something more important. Understanding how you are using your energy can better enable you to make energy procurement decisions. As a result, due to the competitiveness of the deregulated energy market, competitors continuously promote and sell strictly on rates.

Common questions we encourage people to ask are simple things such as:

Is this rate the best for your load profile?

It is crucial to understand what your load profile is and how it works in order to better understand your energy procurement position. A Company’s rates are heavily based on their usage and load profile. You may be eligible for a better rate based on the amount of energy you use and you could be overpaying if you do not pay attention.

Is the rate all-inclusive?

There is nothing worse than looking at your bill after a year and notice discrepancies. As a result of this, you will have to spend more money and time seeking a solution to the problems you now face. Ask your questions ahead of time and save yourself the headache later.

Other Valuable questions include:

Will it provide a guaranteed savings?

What are the terms?

How will they notify you of a change in rate?

How will they prevent you from ending up in a utility default rate?

Are there any early termination fees?

We know that this is a challenging and cumbersome process and topic. We want you to know that the New Jersey Green Energy Consultants are here for you. To help you answer these questions and insure your business is in the best market position possible, please contact us for your free energy analysis. Call us at (973) 287-7797 or email us at

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