In a post earlier last week, a comparison was made between energy rates and the price you pay per gallon for gasoline down at your local gas station. While there are some very broad, basic similarities, securing a competitive commercial electricity rate is ultimately a much more complex process, which is why it helps to have experts like the team here at Live Energy in your corner.
Here’s another practical, real-world example of how relying on the input of a proven expert can benefit you.
You have noticed, no doubt, that the price of gasoline tends to fluctuate. In the time it takes you to use a tank of gas, it’s not unusual for the price to move up or down by several cents per gallon. Imagine if you had the option to contract with the gas station for your next 10 or 20 gallons of gas at the current price. If your local gas station offered you this option, you could wait until the price of gas dips low and then take advantage of it, promising to fill your car up at that station in exchange for a fixed price on your gasoline. Over a period of a few weeks, you could save hundreds.
Unfortunately, gas stations don’t offer you this option, but power companies do. At its most basic level, that’s what fixed energy rates are: you make a commitment to buy from a specific supplier for a set amount of time and, in return, the supplier promises to lock in your price for the term of the contract. There are literally dozens of ways the price can be locked, but that’s a high-level summary of how a commercial electricity contract works.
The really important question, then, is this: when is the right time to buy?
As this blog has pointed out several times in the last few weeks, natural gas prices are at a 10 year low right now. Because natural gas is the primary fuel we use to produce electricity in Texas, the cost of natural gas is closely tied to the cost of power. There is no guarantee that low natural gas prices will translate to low commercial electricity rates because there are several other factors, like weather, that also influence the energy market, but the cost of natural gas is certainly something we keep our eye on.
Timing is crucial when it comes to lowering your energy costs, and right now is an excellent time to take a close look at your commercial electricity needs and think about the future. No one has a crystal ball, so we don’t know when the cost of natural gas will rise again, but when it does it will absolutely push the cost of energy up with it. If you don’t want to miss out on a chance to lower your business’s commercial electricity costs, this is an excellent time to do some homework.
Here at Live Energy, we specialize in helping businesses like yours evaluate the available options and determine the best time to make a move and lock in a low commercial electricity rates. Remember that when it comes to your business, you can lock in up to 12 months before the end of your current contract. We have the tools and the experience to lead you to the energy rate that will work best for you, and we’ve made a career out of saving businesses like yours money. If you’d like to learn more about how our team can help you develop a cost effective commercial electricity plan, please give us a call at (877) 810-7770.