With steadily rising energy costs and the introduction of the carbon tax, making sure you get the best energy price for your facility is more crucial than ever. Several businesses are now relying on procurement partners to guide them in selecting the right supplier for their needs. An experienced energy consultant can help secure an appropriate contract, but it can be hard to determine whom to choose.
When looking for an energy risk management consultant, consider the following:
Transparency and Comparative Quotes
Pick a partner that is transparent, providing all the details necessary for you to decide wisely with respect to your needs (a consultant may only make recommendations). Take note as well that the lowest price does is not automatically your best option, because there are lots of other factors involved, like network tariff optimization, contract duration, environmental charges and more.
Clear Commission Structure and Payment Rules
Know your costs from the get-go. Make sure the partner you choose gets the same commission from all the energy providers in your area to avoid favoritism. In addition, they should not charge more than one stakeholder for the procurement initiative (a consultant may charge commissions to you and the retailer). Either the retailer pays them a commission or you make the payment, direct.
No Quotas Avoid consultants that have quotas to meet with providers.
This can make it difficult for them to stay neutral, which is essential to good energy consulting. Typically, when a consultant offers you no more than a single option - the "best option" - it's all about filling a quota.
License/Certification
Some states, through the Public Service Commissions/Public Utilities Commissions, may issue certifications to aggregators, marketers, and brokers working in the natural gas and electric industry. A state-licensed or state-certified energy consultant is likely to have the managerial, technical, and financial means to offer topnotch energy consulting and procurement services. You will also benefit from hiring an energy consultant who is affiliated with industry groups and has access to federal programs like Energy Star.
Another reason to work with a certified energy consultant is that you need someone who is always abreast with the latest developments in the industry such as deregulated energy. Such changes may be technological, legal, regulatory or in the form of new market opportunities.
Carbon Tax
Lastly, in some retail electricity contracts, carbon costs are not considered - instead, some clauses are provided, permitting adjustment to be made upon the introduction of the carbon price. Be sure your contract is carbon-inclusive so you can avoid unpredictable cost increases related to carbon prices.
Learn more here: https://en.wikipedia.org/wiki/Energy_broker