Electric Procurement

Studies have shown that buying overtime is more effective than point in time purchasing. If you simply wait until your current contract is coming to its expiration date before securing a new rate, chances are you missed market opportunities that would have resulted in lower rates for your next contract term. Again, we understand that your time is valuable, and you can’t focus on monitoring the market on an ongoing basis. CEM can handle market monitoring on your behalf and will keep you informed on buying opportunities that will help you achieve your purchasing objectives.

Understanding how and when your facility is consuming power and understanding your tolerance for price movement are the first steps in determining the correct product structure. As an example, if you are operating a seasonal business, or have equipment that can spike your power consumption, when running, an index or block and index product might be a better option than a fixed price. Working with CEM, together we will determine how you’re using electricity and design a strategy that limits price premiums while still securing the best price available to match your facilities consumption pattern.

There are numerous suppliers in the market competing for your business. It’s not uncommon to receive calls and emails from these companies who are interested in working with you on a regular basis…..and probably more frequently than you’d prefer. CEM, working on your behalf will interact with these suppliers to find the best options these companies have to offer. As we mentioned earlier, buying overtime results in the best rates, so it makes sense to continually monitor and evaluate pricing on your behalf that these suppliers are offering. And, the best rate/product may come from different suppliers at different times. By asking suppliers to compete for your business, it continually keeps them focused on providing the most competitive offers they can in order to secure your business.

Like the old saying goes, “The devil is in the details”. When it comes to reviewing and understanding electric supply contracts, no truer words were ever spoken. The electricity market is in a constant state of change. Whether we’re talking about regulatory changes, generation sources and their associated costs, the changing costs associated with the development of renewable energy resources or charges tied to transmission upgrades, there are unknown costs associated with energy supply….and every supplier has evaluated these risks and has structured their contracts to address these changing and/or unforeseen costs. So is a fixed price really a fixed price for the entire term of the contract? Depending on the supplier, maybe…..it will be CEM’s responsibility as your energy partner to evaluate these options and make sure you understand the agreement before signing to avoid any unexpected surprises.