The Fix: Smart Energy Management Strategies
Kathy Kiernan, managing partner at consulting firm APPI Energy, shares how associations can help their members create good energy management strategies.
Why should associations connect their members with energy management solutions?
Associations representing business owners and managers can provide education and information to members throughout the energy procurement and management process, increasing the value they bring to their members. By connecting members with an independent energy consultant that provides reliable, thorough, and current information, associations can help members increase efficiencies and lower operating costs. Members are then better positioned to make more informed decisions that decrease costs and improve budget planning and forecasting.
Why do association members need help in creating energy management strategies?
An integral component of creating and maintaining an effective energy management strategy—a plan to buy or procure electricity or natural gas—is to seek consultation regarding market timing, the procurement process, suppliers, and supply contracts. Association members can benefit from help evaluating, ranking, and selecting energy suppliers.
What components should drive an energy management strategy?
Association members should enter into a supply contract with favorable terms and conditions, including a fixed price, whenever prices are favorable. They should also track energy price trends and compare suppliers. For a business with annual usage of 1 million kilowatt hours, the difference between the lowest and highest supplier prices could be several thousand dollars annually.