Purchasing energy for your business can be complicated. It can be hard to know your companies best option due to competing providers and a constantly changing marketplace. Decision makers need to know how the current prices compare to those in the past as well as the factors that affect future prices. Here are some key points you should consider when purchasing energy for your business.
The first thing to consider is natural gas. Natural gas prices are starting to directly correlate with cost of electricity as more and more power plants start becoming natural gas reliant. This can be good when the prices are low, but once they start rising or have any volatility, so too will your energy costs. This dependence also becomes harder to predict as the issue of supply not meeting demand arises. As of late, the supply has kept up with demand and prices have gotten low for both natural gas and power. With forecasts pointing to reduced prices in the coming years many energy purchasers are taking advantage of extended energy contracts.
Noticing the changes in the power market is also an important factor when shopping for energy. Prices tend to be cheaper in the spring and with the warmer temperatures lasting into September prices are falling less rapidly. In this case, buyers might be more willing to forgo purchasing energy until the spring time, betting on the winter weather. Whether that is a good idea is hard to know. This winter’s weather is one of the hardest factors to predict and could cause major fluctuations in price. The only way to guarantee pricing for your business’s energy consumption is to have a long-term fixed contract, where the price is stable for the whole length of the time.
Lastly, something else to keep in mind is the inventory of natural gas. Although levels are sufficient right now, if demand increases due to poor winter conditions, this may not be the case for long. As the temperatures drop and demand increases business owners need to be sure they have taken the necessary precautions to protect themselves against severe price increases.
After reading all the details that need to be considered when purchasing energy, wouldn’t it be nice to have a place to turn that could help you weigh your options? An organization who does not have any motivations, but to get your business the best price. That is where Better Cost Control can come to the rescue. At Better Cost Control, we know what the market is doing and we stay up to date on the latest prices from all providers. Our long-term fixed price contracts allow for peace of mind in a market full of ambiguity. We work hard so you don’t have to worry. Contact us today to see how much we can save you and lock in a low rate to take the confusion out of energy pricing.