The cost of electricity needed to operate a business is one of the leading financial burdens for small and large corporations. While there may be more affordable energy providers out there, is making the switch to a different company the best option for you?
5 Things You Should Know Before Switching Your Company’s Energy Providers
With more than half of the US states choosing to deregulate their power markets, many residential and commercial consumers have decided to switch to other energy providers. But with so many factors to consider when selecting between energy companies, understanding the basics behind switching to a new provider can be confusing.
Here are five things you should know before you make the switch:
What Is the Difference Between Electricity Producers, Suppliers, and Utilities?
An electric producer is a company that generates the power your business consumes. A utility is responsible for transporting the energy generated by producers throughout a grid to the end-user. A supplier is a company that buys and sells power to consumers or businesses. You can purchase electricity from a utility or a supplier.
What Will the New Costs Be for Your Monthly Electric Bill?
The charges for using electricity each month are broken down into two categories: supply and distribution. The supply area covers the cost of the actual power you use for your business. The distribution covers the cost to transport the energy from the primary source over the power lines to your place of business. While both of these categories will change from one month to the next, the supply portion is usually the most expensive part of your bill.
Should You Buy from a Utility or a Supplier?
Those who buy their power directly from the utility are usually on a variable-rate plan that may go up or down when the prices rise and fall with the market. When you purchase from a supplier, the consumers can choose a fixed-rate electric plan, which can often help save them money.
What Is Price to Compare?
Price to compare is a technique established by your local utility provider. It is designed to provide a benchmark for shopping and comparing retail suppliers. Suppose you are considering making a switch to a different energy company. In that case, you should find out what your utility’s current price to compare is and use that rate to find out if you are getting a fair price from a different provider. This amount will often change once every few months. Therefore it is recommended that you get the latest information about the current amount for the price to compare. That will ensure you get the most affordable rate for your electric service.
What Will You Need to Switch Companies?
If you have found a company that offers a more affordable rate for your company, all you will need to do is provide them with a few pieces of information to have things set up. You will need details from your monthly bill, such as your utility account number. Many suppliers these days will have an online enrollment form available on their website for you to fill out to make the process of switching to a new provider much more effortless.
Get Expert Advice from a Top Energy Provider
At Sector 7 Energy, we are here to help you find reliable solutions for your company’s electric or natural gas needs. We are a full-service consulting firm located in Dallas, TX, who handles energy procurement, retail energy brokering, energy efficiency analysis, and much more. Contact us today for more details.