Although savings opportunities are limited, consultants say business owners should pay close attention when it comes to picking a power supplier. Business owners should:
Do competitive shopping. Talk to more than one company —t here are differences among suppliers’ rates. Compare them but make sure you look at other costs, such as penalties for switching to another supplier. Some contracts will vary according to your usage and rates may vary during the day. Look for a clearly stated cost per kilowatt hour.
Don’t enter a contract that will be costly or difficult to get out of. Tom Gibson of the Gibson Consulting Group says it’s worth taking the time to meet with the supplier. Go over the details of the agreement. Use a lawyer if it is a complex agreement.
Be aware of the consequences of not choosing. If you don’t choose, you will be assigned to a default supplier. You’ll still be able to change suppliers in the future, however, and you don’t have to worry that you’ll be stuck without power. If your supplier goes belly up, your local distribution company will have to supply you with electricity. Sources: Gibson Consulting Group; Energy Savers; SMC Business Councils
