How Do Companies Procure Energy?
Energy procurement is an important aspect of corporate operations since it entails obtaining energy from third-party energy suppliers or local distribution companies (LDCs). In this blog, we will look at how businesses obtain energy and the function of an energy consultant or energy broker in the process.
Slattery Energy, managed by Jim Slattery, will be highlighted for their expertise in NYC gas consulting and energy procurement in New York City.
What is Energy Procurement?
Energy procurement is the strategic procedure of acquiring energy from a third-party supplier or local distribution company (LDC).
Companies must locate energy suppliers who offer competitive pricing and solutions tailored to their particular requirements –this increases the efficacy and cost-effectiveness of energy consumption.
Parties Involved in the Energy Procurement Process
Many states in the United States have deregulated their energy markets, allowing businesses to purchase energy from private sources rather than depending entirely on monopolized utility company prices. Shopping for an energy provider in such deregulated states is identical to shopping for any other service provider.
Typically, three major parties will be involved in this process:
The Supplier: Suppliers are energy companies that provide energy to consumers on a private, wholesale, or retail basis. They purchase energy directly from the market as an alternative to utility company prices. These providers intend to provide competitively priced, tailored energy solutions.
The Broker/Consultant: The energy brokers or energy consultants are responsible for bringing the buyers and sellers together. They primarily collaborate with your company's energy procurement manager to understand your objectives and establish an effective procurement strategy. The broker or consultant will then work with suppliers to attain those goals while keeping your best interests in mind. You can also work directly with a supplier without the assistance of a broker or consultant.
The Utility Company: The utility or LDC will serve as the default provider. If you do nothing, the local utility will provide both supply and distribution services. Utilities may charge a fixed monthly rate or a market-based rate that fluctuates every month.
Slattery Energy, headed by Jim Slattery, is a reputable energy consulting firm. The company specializes in NYC gas consulting and energy procurement. By partnering with a specialized energy consultant, such as Slattery Energy, businesses are able to navigate the complex world of energy procurement and secure the most advantageous contracts and pricing structures.
Energy Procurement In NY
Energy procurement is a crucial aspect of administering a company's energy requirements. By joining hands with a seasoned energy broker or energy consultant like Slattery Energy, businesses can gain access to the expertise and market intelligence required to make well-informed decisions regarding their energy procurement strategy.
This can result in significant cost savings and enhanced operational efficiency, making energy procurement a critical component of a company's overall energy management strategy.