Getting a great electricity contract for a business is as easy as 1-2-3, and TXU Energy has advice for business owners and operators on how to do it.
“It can seem daunting to tackle energy contracting, but with some homework and flexibility, a business can save money in a variety of ways,” said Brad J. Snyder, senior director for large, commercial and industrial sales.
In a new TXU Energy Business InsightsSM video, Snyder says the three keys to great contracting are:
1. Timing - Be flexible.
Some companies have a very structured process for initiating and renewing electricity contracts and they stick with particular contract lengths, such as 6, 12 or 18 months. With flexibility on when they initiate a new contract, business customers can find better rates, Snyder said. He also said that less traditional contract lengths can capture additional, non-summer months to lower overall spending.
“It’s also smart to know long-term electricity budgets,” Snyder said. “If an offer is lower than the amount budgeted in future years, lock in a low rate now and claim the savings.”
2. Risk v. Reward – Know the company’s risk tolerance.
Companies can range in risk tolerance from play-it-safe types to risk takers. Play-it-safe buyers should look for fixed rates with no ancillary pass-through charges. Risk takers, on the other hand, might want indexed products that let them take advantage of market volatility. Businesses that want the best of both worlds can combine fixed and indexed pricing for different levels of electricity usage.
“Knowing the company’s risk tolerance will help steer a buyer toward the right products,” Snyder said.
3. Additional offerings - Get more from the provider.
From rebates for efficiency projects to demand response payments and marketing opportunities, businesses can get even more from their electricity contracts, Snyder said.
In a new Brighten® GreenBack program, can last for decades beyond the contract,” Snyder said. “Others, like demand response programs, allow a business to turn their electricity usage into an asset.”
About TXU Energy
TXU Energy is a market-leading competitive retail electricity provider, powering the lives of more Texans than any other retailer. TXU Energy offers a variety of innovative products and solutions, allowing both its residential and business customers to choose options that best meet their needs, including exceptional customer service, competitively priced electricity service plans, innovative energy efficiency options, renewable energy programs and other electricity-related products and services. Visit txu.com for more information about TXU Energy. REP #10004.