Gas prices rose above $4 per gallon around the U.S. this week and are expected to reach $5 per gallon by the time this upward trend is over. Meanwhile, the effects of these higher fuel costs are showing up in other aspects of the economy. According to the US Energy Information Administration, retail electricity prices rose an average of 4.3% in 2021 and they expect them to continue to rise in 2022. Stakeholders in commercial buildings can make the choice to pay these rising costs and pass them on to their customers. This will likely have a negative impact on customer loyalty and retention. Forward-thinking organizations are seeking solutions to mitigate the effects of energy costs.
There are only two ways to maintain or lower your energy spend in a rising market; consume less energy or pay less for the energy consumed. There is nothing like a rising energy bill to motivate managers to prioritize energy efficiency projects and reduce waste as quickly as possible. On the other side, the energy aggregation model is becoming more widely accessible and highly successful at saving organizations money by optimizing buying power and managing rates.
Energy Efficiency Measures
Being efficiency conscious is not a new concept to the market. But with evolving technology and software advances, there are any measures and methods that can improve upon efficiency projects completed in the past. If stakeholders fail to partner with energy experts such as Albireo Energy, they may be leaving money on the table. After a deep dive into evaluating existing conditions, energy consultants can guide organizations through best strategies, programs, and financing options. Using some of the methods below, energy partners can pinpoint waste and operational improvements that may not be evident to managers or less experienced consultants. They can see some of the tools and methods listed to demonstrate suggested strategies to inform decision-making and action plans.
- Energy Modeling
- Energy Audits
- Certification Programs such as LEED and ENERGY STAR
- Mechanical/Electrical Engineering
- Utility Incentive and Financing Evaluation
- Operational Efficiency Upgrades
There are thirty states plus the District of Columbia that have deregulated one or more of their energy markets. The competition created by allowing multiple energy suppliers lowers pricing. Not only does it allow for better rates, it allows consumers to lock in rates and choose green energy sources.
The benefits of joining a group that buys electricity or natural gas can include more than good rates; such as better terms, consolidated billing, energy management services and energy use analysis. Aggregate groups can gain access to renewable energy sources or other options that smaller operations may not have the capacity to qualify for their own. The aggregate group can invest in a range of energy producers which will lower their risk and keep pricing predictable.
Until as recently as 2019, only large corporations with high volume energy usage were able to benefit from bulk purchasing. With aggregate groups, small companies can still gain the benefits and purchasing power despite the smaller size of their requirements. The multiple buyers in the group will also share the legal and transaction costs.
Because the group’s higher demand, suppliers are interested in competing for the account. This can save up to 30% on energy bills. Energy aggregators such as Albireo Energy, provide bulk energy pricing, cutting edge utility management apps and professional management services to support members in achieving the best possible rates while meeting green compliance requirements.
Albireo Energy’s aggregation model has been tested in the market since 2008. Albireo’s energy experts have facilitated many bulk buying agreements that are highly successful at assisting organizations to meet budget and compliance requirements. Working with local government and corporations, Albireo created and operated the following energy aggregate programs:
- Philly Buying Power
- Boston Buying Power
- Dunkin’ (private)
- District Buying Power
These programs are easy to sign up for and have reduced energy bills for their members by up to 30%. There is no cost to joining the aggregate only savings.
Rising energy prices are going to impact all of our corporate and personal lives in the coming year. Being proactive is the best way to contend with higher costs. Set efficiency goals and take steps to implement them to reduce energy consumption. Reach out to an energy aggregator like Albireo and learn what savings membership will provide. There are only two ways to beat the rising energy costs and they are to lower energy consumption and pay less for the energy consumed.