What Is Energy Procurement Services And Its Benefits?
Energy procurement is the strategic process of sourcing your energy needs from a third-party energy supplier. Businesses source natural gas or electricity to power their operations but many organizations neglects energy portfolio management even though it has the potential to reduce cost. Buyers should incorporate all sourcing options into energy procurement services. Commercial energy contracts can be complicated and energy pricing is highly volatile.
Benefits of Energy Procurement:
Every part of an organization is affected by energy decisions either its finance and facilities and legal departments. So energy strategies must be transparent and build up from an organization’s core strengths. Our main motive is to help an organization save money, manage risk, and forecast expenditures more accurately. A well-planned energy procurement service can add certainty and dependability to your operations by:
· Help to reduce the risk of unforeseen charges, hidden fees, and costs.
· The consultant sends you to report for forecasting based on your research and monthly usage.
· Help to provide a reliable source of fuel which is essential for construction, manufacturing, transportation, and healthcare.
· Have proactive control over your fuel costs and types and financing and billing schedules.
How do companies produce energy?
For energy production, companies look for an energy supplier that provides competitive pricing and a solution to meet needs. Every business wants to pair with the right supplier as they have special requirements for their energy usage. During the shopping for an energy provider, you have to deal with the following parties:
The supplier:
The private, wholesale, and retail energy companies help to provide energy to customers. They directly purchase energy from the marketplace and offer competitively-priced, personalized energy solutions.
The broker or consultant:
Energy brokers and consultants bring buyers and sellers together. To put the energy procurement strategy in place brokers work with the energy procurement manager. If you want you can directly work with the supplier there is no requirement to work with a broker or consultant.
The utility company
The utility and LDC will be your default supplier and serve you both supply and distribution. Many utilities don’t have preferences. The utility will charge a set rate for 3 or 6 months, or a market-based rate.
Utility Bill Audit
Utility Bill Audit is the process of analyzing electric or natural gas to identify any billing errors from your suppliers. They will determine if you were overcharged and help you make sense of them. Large enterprises receive multiple complex utility bills every month including electric, natural gas, water, and telecom. Large companies spend an enormous amount on utilities that’s why monthly utility bill auditing is required because even small error corrections can generate huge savings. Every resident and business owner in New Jersey looking for ways to save energy. An average of 80% of companies suffers overcharges and billing errors so they need to hire a utility bill audit companies in New Jersey.
Typical Errors on utility and supply statements
Every invoice contains multiple line items, charges, and meter readings that result in a big error margin. Some errors which are identified by utility bill audit companies in New Jersey that result in additional costs:
· Meter reading error
· Tariff Overcharges
· Incorrect Rate Plan
· Typing/ Computer Errors
· Faulty Equipment
So bill auditors use three pricing structures such as fixed fee, hourly rate, and contingency.
Troybanks has a year of utility experience and we put them to work for you. If you notice an error in your utility bills then don’t just let it go. A utility bill audit help to save you a lot of money.
