01
Understanding Energy Markets
In deregulated markets, you can choose your energy supplier while the local utility still delivers the power. This separation of supply and delivery creates opportunities to reduce costs through competitive procurement.
- Deregulation available in many states
- Separate supply charges from delivery charges
- Multiple suppliers competing for your business
- Fixed vs. variable rate options
02
Procurement Strategies
Different procurement strategies suit different risk tolerances and market conditions. Most businesses benefit from a blended approach.
- Fixed-price contracts: Budget certainty
- Index-based pricing: Market exposure
- Block and index: Hedged baseline with market upside
- Layered purchasing: Spread risk over time
03
Working with Brokers
Energy brokers can simplify procurement but introduce potential conflicts of interest. Understanding their compensation model is essential.
- Brokers are paid by suppliers
- Request transparent commission disclosure
- Compare broker quotes to direct supplier offers
- Consider fee-based consulting for large accounts
04
Renewable Energy Options
Renewable energy procurement has become cost-competitive with conventional sources while meeting sustainability goals.
- Power Purchase Agreements (PPAs)
- Renewable Energy Certificates (RECs)
- Community solar subscriptions
- On-site solar and wind installations
Key Takeaways
What to remember from this guide.
- 01Deregulated markets offer supplier choice
- 02Match procurement strategy to your risk tolerance
- 03Require commission transparency from brokers
- 04Renewable options are increasingly cost-effective
Related Resources