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To the uninformed, energy procurement seems simple. Quality is not an issue since electricity and gas are always the same when delivered to your facilities. The problem is energy pricing is often complex. Therefore, it’s not sufficient to just get quotes from three or four energy sales people and then select the one with the best price.
Clients such as the Boston Red Sox, Simmons College, Leviton Manufacturing. WCVB-TV, Mitre Corporation and Middlesex County turn to BCC to reduce their energy risk, control their costs, and protect their interests. As a licensed energy broker working as a business partner, BCC makes quick decisions on their behalf when the timing is right--saving these companies thousands of dollars and eliminating budget risks.
Because energy is a commodity, timing is everything. Just like stock prices, energy prices fluctuate—but predicting the price direction is even more difficult because the information needed for decision making is hard to interpret. The experts in energy markets, therefore, make split second buying decisions. Suppliers then need to add margin to the pricing they quote to cover their bets for future fluctuations measured in fifteen minute increments-- rather than hours--since most companies are not prepared to sign the contract quickly. Even then, their quotes are only good for that day. For this reason, companies that work with a licensed energy broker—who can make quick decisions for them—pay significantly less for their energy than those that deal directly with energy providers.
Add to this complexity the rules, regulations and a variety of different fees that are specific to each state. There are even some fees that are specific to only certain regions of a state. Then there is the question of whether your company is even on the correct utility rate. This is based on your historic energy consumption, but you cannot assume you’re your rate is the correct one.
Finally, consider the complexity of arcane contracts that affect how everyone sets their prices. The price from supplier A may be lower than supplier B, but the contract terms might make supplier B the better deal. Many companies don't understand what they are committing to in their contracts. Terms like RMR, ICAP-Tag, Congestion, Capacity, Clearance Price, Capacity Reserve, basis, and LFR don't have much meaning to most people, but when it come to energy contracts, they matter.
As a licensed energy broker, Better Cost Control can negotiate the best prices for electricity and natural gas. Using our regulatory knowledge and experience, you can be confident of securing the best energy options, regardless of your annual energy budget. |
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