Month: April 2022

Small business electricity savings can become a lifeline of savings for owners. If you’re looking for a way to save money on your small business electricity costs, you should consider a post-pay agreement.

In a post-pay agreement, the supplier agrees to sell you power and coordinate its delivery. You’ll pay only after you’ve used it. Because you’ll be billed for it, you’ll be obligated to pay the supplier.

Some suppliers will also run a credit check on your company, so it’s vital to have this information ready. Most will just confirm on time payments with no balances in arrears.

In addition, small businesses that don’t have much business history may be hesitant to sign up with a vendor that will check their credentials.

Fixed Pricing is Often the Best Option

One option that many small businesses use to purchase electricity is to sign up for a fixed-rate contract. This type of plan allows you to pay the same price for energy over a given period of time, regardless of how much you use.

This can make it easier to budget your energy costs and manage. Another option is to opt for a fixed-price layered strategy. This strategy gives you the opportunity to purchase energy at a lower price each month and pay less overall over the course of the contract.

While a fixed contract is the cheapest option, it may not be suitable for every business. This type of plan lets you lock in a price for a specific amount of time. The price of electricity will stay the same throughout the duration of the contract. Ideal for small businesses looking for cost-effective electricity.

Budget Energy Costs for the Year

If you need to save money on your small business electricity bills. Considering a fixed-rate contract allows for monthly and yearly energy budgeting. A plan that allows you to pay a fixed rate for energy for a certain period of time, regardless of how much you use it.

This makes it easy to budget your total energy expenditures for the year. It provides a simple and straightforward approach to energy procurement. So, before you sign, make sure to know how it works for your business.

As long as you know your needs, a confirmed rate plan is an excellent choice for your small business. This is a convenient option that allows you to avoid a fluctuating cost structure.

It’s a one-time purchase, but it’s a great way to get the most out of your small business electricity usage. A locked rate contract allows you to pay the same price per kilowatt hour no matter how much you use it.

It is a “one-and-done” approach to energy procurement and can help you avoid liquidated-damage cancellation fees. Small business electricity savings will allow owners one less thing to worry about.

You’ll know exactly how much money you’re spending on electricity and can budget accordingly.

How to read commercial energy bills. There are many sections to a commercial energy bill, and most of them are not directly relevant to your business.

However, focusing on the most elements will help you manage your energy costs more effectively. The five most critical components of a commercial bill are explained.

These components include the:

1. Service Address
2. Rate Plan
3. Amount Owed
4. Account Number
5. Meter Number.

Keeping this portion for your records is helpful, as it shows essential information about your business’ usage month over month.

When it comes to reading your commercial energy bill, you should be able to identify the most critical items on the page quickly. This is the measurement for the quantity of electricity you use. The kWh is the kilowatt-hour that you consume.

What is a Kilowatt-hour?

The first thing you should learn about your bill is the unit of consumption. The usage will help you determine the amount of electricity that you use. This is measured in kilowatt-hours.

The higher the kilowatt-hours, the higher your bill will be. If your invoice is hefty, the kWh totals will be high, and you should try to reduce usage as much as possible.

If your bill is small and manageable, you can still cut back on the number of lights used in your offices.

In addition to the kWh, an electric bill includes many other charges. Each of these has a specific rate and usage number that adds up to the overall amount of the bill.

Difference Between Supply and Delivery Explained

Commercial utility bills and residential as well have 2 distinct components regarding consumption usage. The difference explained should make more sense because understanding how utilities separate billable components.

Supply – Where the Cost Savings Reside

• This is the actual electricity or natural gas that a commercial or small business consumes. Firstly, you should look for the kilowatt-hour. It will show amount of energy used per hour. Natural gas is measured in therms.
  
• Public utilities charge an amount based on the procurement contract they have executed. But there are different thresholds for supply usage. For the first 500 kWh, you may pay a different price than the 501st and upward.
  
• In the case of a commercial energy bill, a kilowatt-hour is two measurements. One measure is the wattage, while the other measures the time it takes to consume the energy.
  
• New Jersey Energy deregulation allows consumers, commercial, industrial, and small business to choose their supplier without penalty. 3rd party suppliers can provide cost savings for business owners and property managers.
  
• Savings can be substantial through The Energy Consultant NJ with “No Cost Savings Analysis.” For larger accounts the “Reverse Procurement Auction” where suppliers try to outbid each other for your business.

Delivery – Public Utilities Need to Make Money to Survive … Right?

• The delivery component of your energy bill is something you cannot choose. Delivery of electricity and natural gas is NOT deregulated.
• The cost of delivery is set by the NJ Public Board of Utilities and is billed by local utility companies. Delivery is how the utility company makes it’s profit. The actual delivery component consists of
• Delivery charges cover a range of different aspects of moving electricity. From generation to distribution to end users.
  1. Generation – production of energy at a central plant
  2. Transmission – pushes electricity into the complex web known as a grid
  3. Electricity Substations – accepts the electricity and move it further along the grid
  4. Transformers – move the electricity through high tension power lines
  5. Distribution Power Lines – connect and complete the delivery to buildings, factories, and other structures

This short guide should explain how to read commercial energy bills. In addition utility companies also handle a bevy of additional services such as … metering, billing, maintenance, and customer service.

Remember Mantis Innovation Account Executives are experts, and an essential part of your success will be in communicating with them every step of the way.