The ROI of Proactive Energy Procurement in De-regulated Markets
Deregulated markets allow for the fixed pricing many companies prefer in order to have predictable spends on their energy use. There are currently around 15 states that enjoy at least some benefits from de-regulated electric markets. As a result, Ohio is one of about a dozen of states that have robust markets for commercial and industrial customers – and that provides significant opportunities for businesses
Monitoring Energy Prices
As part of the ongoing service Curago provides to its clients, we continue to monitor electric prices for our customers. The fluctuation of prices and volatile market trends create a volume of change that few companies can devote enough time to monitor. Energy use is a small portion of their business expense and simply doesn’t make the priority list.
Curago performs energy monitoring as a standard procedure of our customer service. With energy procurement being 100% of our focus, it’s easy for us to identify and secure significant benefits to a client’s overall bottom line.
Proven Value in Proactive Energy Procurement
Here’s an example of how it can work. One of Curago’s clients provides modern lighting solutions on a worldwide scale. The local utility had the company on their regulated tariff rate, paying more than $.07/kWh for their electric, when Curago Energy was introduced to them. We made them aware of their many de-regulated energy alternatives and, as a company driven by disciplined budgets, they agreed to have Curago look at 1, 2 and 3-year fixed price options. By the next quarter, we helped get them into a new 2-year contract at less than $.058/kWh providing them with an 18% reduction!
Then, with more than a year left on their original contract, energy markets fluctuated enough that we approached them with another opportunity to decrease their budget. At that time, we got them into another 2-year deal at less than $.053/kWh and another 8% savings.
The fact that the electric suppliers we monitor and work with in de-regulated markets can provide long-term, fixed-price options enabled our customer to honor the original 2-year contract – while still managing their energy price risk three years into the future. Curago Energy, by proactively managing this client’s energy contracts regardless of contract expiration dates, was able to reduce their electric rates by more than 25% with little to no effort on their part. We did the work, they got the savings.
That’s a powerful benefit to working with energy procurement professionals who have a history of doing things “the right way.”