How to develop a strong energy budget for your business

Understand and monitor your local energy market

To evaluate your local energy market, you can start by answering the following questions: Have the energy rates in your area of operations changed? Are prices trending up or down? If you are in a deregulated market, are there any new providers for your location?

Analyze your consumption

Understand how your company uses energy and what you spend. If much of your use happens during the afternoon, and you are currently on a time-variant pricing contract, consider changing your operating hours to use more energy during less-expensive times or explore switching to a contract that doesn’t charge more for energy used in high-demand times. 

Analyze your consumption (cont.)

For more tips and guide questions on how to go analyze your energy consumption, refer to the full article linked below.

Audit past bills

Gather at least one year’s worth of energy bills and review them. Note any ancillary charges. These cover the utility company’s costs for services required for energy distribution and transmission. In other words, they are outside the usage-based charges on your bill but still need to be accounted for when predicting your expenses.

Finalize your budget

Now that you are armed with information on available options, your consumption, and what other charges make up your energy bills, you should be able to predict future expenses. 

Partner with experts

Your business can benefit from outsourcing energy evaluation and procurement strategies to professionals whose full-time occupation is understanding energy markets, building relationships with energy providers, and helping companies understand how to save money, increase reliability, and stabilize spending.

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