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The 10 Rules for Buying Energy Right

Posted by SJI Energy Advisors on Jul 3, 2020 3:53:00 PM

If your energy procurement process doesn’t include all of these requirements, you should look around for a different energy procurement partner with a better process.

  1. The buying process should be totally transparent – no hidden fees
  2. Pricing should be comparable – i.e. for exactly the same contract terms – received from all suppliers on the same day
  3. The process should be fair and unbiased. Your procurement partner should represent you, not the suppliers, nor be paid commissions by them.
  4. All suppliers in your area should participate in the head-to-head bidding.
  5. Multiple prices should be requested simultaneously – 12, 24, and 36 month contract terms, with/without green power, bandwidth, payment terms and anything else you want to know.
  6. Green power shouldn’t cost extra. 
  7. You should have no obligation to accept the lowest, or any of the bids.
  8. The process should be quick and efficient – 2-3 hours of your time
  9. No long-term ‘consulting’ contract needed with your broker.
  10. On-going support between contract renewals should be at no additional charge – e.g. monitoring the energy markets, bill auditing, etc.

If your process doesn’t include all of these requirements, you should look around for a different procurement partner with a better process. Reach out to SJIEA@sjindustries.com for more information on how to partner with us.