USIndoor's Official Magazine is a quarterly publication, dedicated to owners, managers, program administrators and other professionals, startups and providers involved with indoor recreational sports facilities.
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ent market companies continually evaluate their electricity expenditures and pricing. Two-thirds report that they review their energy expenditures at least annually. Combined, that means three quarters of the middle market evaluates their energy costs on a regular and frequent basis. Only one quarter of the companies surveyed by the ERC review energy costs less than once per year, presumably based on internal needs or exposure to external opportunities. Best Practices: Facilities should continually monitor the electricity market for buying opportunities. Facilities can take advantage of today's prices in a supply agreement that begins when their current contract expires, even if the expiration date is one or more years in the future. How frequently should middle-market companies evaluate electricity prices and alternative suppliers? Negotiating an electricity supply contract is only one part of managing your electricity needs. ERC research shows that almost one quarter (22%) of middle- Electricity prices fluctuate constantly based on a variety of market, political, economic, and environmental factors. Many companies review electricity supply pricing regularly to secure future contract prices when market rates are low. Early termination penalties prohibit simply switching suppliers, but middle-market companies can commit to a new contract for a future timeframe, based on current dips in the market. Opportunities to capture market dips come and go quickly, making it important to monitor market conditions regularly. What do middle-market companies look for in a competitive electricity supplier? Ask middle-market decision makers to name the most important factor in selecting an energy supplier and most will tell you, "price." But price is not the only factor impacting the buying decision. Demonstrating an advantage in certain other factors, such as service reliability, billing accuracy, or contract terms & conditions, may offset pricing gaps between different competitive suppliers. ERC research shows that most middlemarket companies rate service reliability and billing accuracy as critical to selecting the right electricity supplier. These factors impact customer satisfaction and the total cost of managing a company's electricity supply. For example, consider the internal cost of resolving billing errors. Billing problems can result in inaccurate fees and require significant time and effort to detect and resolve. Further complicating the process of correcting billing errors is the fact that electricity bills may come from a local utility, an electricity supplier, or both. Best Practices: Reliable suppliers offer fully-staffed customer service teams that handle paperwork and save the customer time and effort. Getting things done quickly, and ensuring that the terms and conditions in the supply agreement are executed accurately, are critical to customer satisfaction. Bottom Line In states with deregulated energy markets, middle-market companies can reduce electricity supply costs in a contract with a competitive supplier. Decision makers must thoroughly evaluate price components and contract terms and conditions to ensure they select the most advantageous supplier. Price, billing accuracy, and service reliability drive customer selection of competitive suppliers. The majority of middle-market companies review energy expenditures on a frequent and ongoing basis. WINTER201 4 15