Is your company prepared for the energy challenges that lie ahead?
The price of energy is affecting industries worldwide. With the volatility, complexity, and cost involved with the energy market, it is crucial for a company to develop a strategy to manage their budget in this complex market.
Companies that are located in deregulated natural gas and electricity markets have hard decisions ahead of them. Gone are the day’s when you told your controller or CFO just “pay” the electric and gas bills. Today’s market requires an educated buyer.
Ask yourself this question, “Do we have the time or expertise to manage our energy cost? So what to do? Hire an Energy Management Company (EMC). Most will work on your behalf for free because they are paid by a third party supplier. Use their expertise and buying power.
By utilizing an EMC you can stream line the buying process. A typical relationship will require you to get your current utility bills and review them with the EMC. Once they have the particulars about your energy profile they can then develop a proven strategy for purchasing your energy.
An annual savings of 10% is common, however; depending upon the deregulated market your in, your savings could exceed that 10% mark.
A case in point: A major financial institute in Western Massachusetts had noticed that their energy costs had steadily increased over the past 2 years. They assigned their controller the task of seeing how she could stabilize their cost for the future.
After doing some research on the net she became very frustrated with the lack of information she could find on the subject. Thru the local Chamber of Commerce she located an EMC. She came away looking like a hero as 1 year later she showed that she had reduced their energy cost from the previous year by 21%.
A good EMC should be in contact with you on a quarterly basis and keep you up on current market trends with a monthly newsletter. By working with a top notch EMC you can bring long term security and stability to your energy costs. For more information contact your local MEP operations manager.
Here is a link to the deregulated states. http://www.eia.doe.gov/
“Of one thing we can be sure: energy will be more challenging and more important in the future. Will you, and your business, be ready?”— Peter Schwartz, Chairman, Global Business Network
