The strategic method of securing the energy needs from a third-party energy supplier or a Local Distribution Firm (LDC) is known as energy procurement.
FREMONT, CA : One often mentions energy pricing and risk, but what exactly does that have to do with the company or facility? Businesses must rely on either natural gas or electricity to operate their operations. The strategic method of securing the energy needs from a third-party energy supplier or a Local Distribution Firm (LDC) is known as energy procurement.
Electricity rates have been affected by the COVID-19 pandemic, and are now recovering. Meanwhile, renewable energy is taking center stage, with fossil fuels relegated to the background. That means that renewable energy sources such as wind, solar, and hydrogen will be the primary sources of energy in the future. So, how does one make the best decisions for their business? Find below all the aspects of energy procurement and the benefits, and why it is relevant.
By taking charge of the company's energy spend rather than allowing the local utility company to dictate it, having the right energy procurement plan in place will save firms the money. Customers who leave those utilities can be eligible for discounts. Suppliers would be able to merge all of the accounts and meters into a single invoice, making it easier for the accounts payable team.
The Benefits of Energy Procurement
A well-thought-out energy procurement strategy will boost your operations' predictability and dependability by:
- Keeping the possibility of unexpected charges, fees, and costs to a minimum.
- Giving users more informed load forecasting based on research and monthly usage reports sent by the broker/consultant or supplier.
- Providing a steady supply of fuel for sectors such as construction, manufacturing, transportation, and healthcare.
- Allowing one to take control of the fuel costs and forms and the financing and billing schedules.
Who Can Use an Energy Procurement Service?
Since all businesses have overhead energy costs, energy procurement services will support almost any form of company. Using a utility procurement company allows businesses to take control of their spending. They can also get easy access to green energy, which is fast becoming the trend. An energy management service can be used by a variety of companies, including:
- Non-Profit Organizations
- Industrial and commercial organizations