Not everyone is familiar with the difference between being a retail energy buyer and a wholesale energy buyer, but it’s important. In fact, not everyone is familiar with the fact that there even is such a thing as wholesale electricity. You pay the local power company for your electricity. Isn’t that how everyone gets power for their business? No, it isn’t. Aside from going solar or exploring other alternative energy sources, what other option do you have? The option that more and more businesses are turning to is that of buying their electricity at wholesale prices from the lowest bidder. However, many people are still unaware of the existence of this wholesale electricity market, much less knowing how to navigate it and buy power. You only stand to benefit from the knowledge you’ll gain about the wholesale electricity market, and in this blog post, we’ll explore some of the main reasons why.
1. It’s cheaper to buy electricity at wholesale prices
Any time you can find one of your raw materials or basic supplies for a cheaper price, you jump on it, so why wouldn’t you do the same for your electricity? The cost of energy is one of the fixed costs that all businesses have to pay for, and most people figure there’s no way to lower that cost. Ah, but there is. Electricity companies are just like any other supplier, and their product (electricity) is subject to the same laws of supply and demand that everyone else’s is. When they have a surplus of electricity paired with low demand in their market, their price goes down. They sell it to another market (such as the one you’re in) for a cheaper price. Getting electricity at wholesale prices allows many businesses to save money. Why shouldn’t you be one of them?
The side benefits of learning about the wholesale electricity market are as infinite as the number of benefits that you get from paying less for anything.
- You have an edge on your competition.
- You retain more profit.
- You grow faster.
- You can invest more in your business.
- You have more flexibility in where you choose to use your money.
2. You’ll optimize your energy management practices
The more you understand about the way that you acquire electricity, the more you will be able to optimize your day-to-day operations to take advantage of your knowledge. In the fight to be competitive, you don’t want to leave any stone unturned in the effort to be efficient, streamlined, and cost-effective.
3. You’ll make more savvy choices when you navigate the wholesale electricity market
There’s a lot that goes in to buying electricity for wholesale prices, and if you’re just at the very beginning of the process, you could make some decisions that are not as cost-friendly as you thought. For those who are just starting out on this journey, you go from “Wait, this is even a thing?” to “So how exactly do I buy this, and how does it get delivered to me? I mean, I’m guessing it won’t come on a truck.” It only gets deeper and more complex from there. If it seems complicated to you to get started, here’s an easy way to navigate the learning curve: Talk to a consultant.
Talk to our energy consultants today
Here at Energy Network, we specialize in helping businesses to save money and optimize their energy management practices, particularly in the area of buying wholesale energy. Contact us today to get started with your consultation.