Your Energy Procurement Options
When any new territory is deregulated, customers are faced with purchasing a 'new' product (electricity) in a
confusing new market.
There are many
consulting firms available to assist you, from small and inexpensive,
to large and expensive. So how do you choose the best partner and procurement
method?
It’s not simply a question of getting the lowest
price. It’s also a question of the supplier's contractual terms and
conditions. Without some experienced advices it’s easy to find yourself comparing apples with oranges.
Your Options
There are 4 options for procuring Energy after deregulation:
- Do nothing and stay with your Local Utility Company, and you will get their default rate. The local utility company must provide an option of last resort, and that is called the default rate. This is a worst case rate. The local utility company will tell you directly that this is not a good way to go.
- Negotiate Directly with a Supplier. This will provide a better rate than the default/standard rate, but it will be higher than their MOST competitive rates.
- Work with an Energy Broker and who will get quotes from several (typically 3 to 4) suppliers, but not all the suppliers (typically more than 10) serving your area. This limits your options and will not yield the lowest possible rates.
- Or, you can use an Energy Auction to ensure maximize competition and provide the lowest possible rates from ALL the current competitive suppliers in your area. There is no better method.
The most telling fact is that
all electric utilities/suppliers use auctions to procure their own energy needs. Why? Because they know it's the
best way to get the best possible rates.
Very rarely do you have a situation where the choice is as clear as this.
For speed, simplicity, and cost efficiency, Energy Auction are
the best option, period.
Learn More About Why Online Energy Auctions are the Best Option (click here)
Note that under deregulation, even though you will contract directly with a 'supplier', your local utility is still obligated to service all customers equally, regardless of the supplier.