Why Use A Middleman To Procure Energy? Energy markets are very complex and volatile. Often suppliers consistently change their terms and other “fine print” in their contracts. This legalese can be misleading at times leaving the customer to potentially select a provider that is actually more risky or expensive than a competitor. Using a qualified consultant can help a customer match the right amount of risk, price, and other terms to the customer’s specific needs.
How Much Does Negotiating An Energy Agreement Cost? ERC is typically compensated by adding a small fee to the purchase price. This typically equals about two to three percent of the customer’s annual spend. For electric this is typically $0.001 to $0.003 per kilowatt-hour and for natural gas $0.10 to $0.25 per dekatherm. The fees depend on the customer’s annual estimated energy consumption.
Does ERC Perform Online Reverse Auctions? While ERC has previously and can perform online reverse auctions, we have found little value to this process. First, the auction typically costs the customer an additional one percent for a one-time event that provides no additional value throughout the term of the agreement. More importantly, online reverse auctions for energy do nothing to truly improve suppliers’ prices and do not review or demonstrate a competing supplier’s terms and conditions, risk, etc.
How Our Process Works:
- Once a contract is in place between both parties, ERC will request invoices. For electric, ERC simply needs a copy the most recent electric invoice(s). For natural gas, ERC does require at least the last twelve months of natural gas invoices.
- ERC uses this data to begin the RFP process and prepare various cost comparisons.
- The RFP will be issued to a robust field of well-established, reputable energy suppliers including specific criteria based on the customer’s specific needs.
- Upon review of the bids, an apples-to-apples illustration of various options alongside ERC’s recommendation will be provided to the customer complete with cost analysis comparisons allowing the customer to make the most informed decision.
- ERC is supplier neutral and transparent. The customer knows the fee being charged and the annual cost of ERC’s fee.
- At times, ERC even recommends a customer not select an energy supplier and instead return to full service from the local utility if this is the most cost effective option.
Let Us Help You Save Money: Call: 800-837-6406, Info@ericryan.com, www.EricRyan.com