The price of natural gas and other wholesale energy costs have been trending upwards over the past few years. Consequently, businesses need to take an active role in reducing their energy consumption to save money. Energy managers are on the front lines to ensure that these energy-saving measures are implemented and enforced, so they’re in a prime position to help companies achieve maximum efficiency with their energy usage, thus saving money in the long run. Here are some ways an energy manager can lead their company towards reduced costs from wholesale energy.
1. Work with an Experienced Wholesale Energy Partner
The best means to reduce your business’s energy costs is to partner with an experienced wholesale energy provider. A wholesale energy provider can help you negotiate lower prices with your current energy supplier, as well as help you find new sources of energy that are more cost-effective. An experienced wholesale energy partner can also help you navigate the complex world of energy deregulation and find the best solution for your business.
An experienced wholesale energy partner will help you optimize energy consumption using energy analytics, intelligent meters, and programs like time-of-use pricing. Time-of-use pricing charges you less per kilowatt-hour when power consumption is low (like at night) but higher rates during peak times (typically weekday afternoons). The result? You save money! You can contact Ontario Wholesale Energy experts for effective energy consumption solutions and competitive
2. Using Real-Time Energy Data
Businesses need to understand how and when they use energy to reduce their energy costs effectively. That requires tracking their energy usage data in real-time. Energy managers can use this data to identify patterns and trends to make changes that will save the company money. By reducing energy consumption, businesses can also reduce their carbon footprint and help the environment.
Real-time energy data will allow building operators to determine whether equipment malfunctions or system problems may have contributed to a high power consumption rate. Building operators need to track and record the precise time at which an event occurs to pinpoint the cause. As such, it’s possible to identify problems immediately and take corrective and proactive measures to curb the situation.
3. Understand How Local Energy Systems Work
To save money on wholesale energy costs, energy managers must understand how the local energy systems work. For example, in Ontario, the Independent Electricity System Operator (IESO) controls the flow of electricity throughout the province.
The IESO operates a real-time balancing system that matches supply and demand by controlling electrical flows and frequency within defined limits. However, each province’s energy system is different, so a company’s energy manager should research their local system and develop strategies tailored to their specific needs.
4. Evaluating Energy Bills
Businesses need to take a comprehensive approach to reduce energy costs. That means looking at the more obvious details like ensuring your HVAC system is running efficiently and the big picture, such as evaluating your energy bills. Assessing your energy bills can be time-consuming, but it’s also an invaluable tool for better understanding where you stand regarding cost per kWh. By reviewing this information, you can see what wholesale rate you are paying (which may vary depending on the time of year) and what percentage that accounts for out of your total bill.
However, to efficiently monitor your rates, you need to install a real-time pricing meter. In addition to allowing you to track which days have been more expensive than others, this device will help keep your company from being locked into unfavorable long-term contracts with suppliers or regional utilities who charge high prices during peak hours. You can even choose what periods are peak times so that they reflect when your business operates most frequently. Using an energy calculator can also help get familiar with these metrics before diving in head first.
5. Negotiating Contract Terms
One way energy managers in companies can save money on wholesale energy costs is by negotiating better contract terms. That means understanding the market, being aware of your company’s needs, and having a clear idea of what you’re willing to pay. It also means being prepared to walk away from a deal if it isn’t in your company’s best interest. With the right approach, you can save your company money on its energy costs.
For example, one utility provider offers time-of-use rates priced higher during peak hours (when electricity demand is highest) but cheaper during off-peak hours. That rate structure allows a business to conserve electricity during expensive times and still receive enough power when necessary.
Conclusion
Reducing energy costs is a top priority for businesses of all sizes. And while there are many ways to save money on energy, one of the most effective is to work with an experienced wholesale energy expert. They will help you find the best wholesale energy prices and help businesses reduce their overall energy costs. They use data analytics and offer insights that empower better decision-making. Ultimately, this helps improve performance through a greater understanding of the power usage in your company’s business processes.
