Methods that a company may explore in order to get energy costs under control.

June 5th, 2015

Let’s take a look at methods your company can explore to control energy costs.

 

Today’s post is by Ryan Melowic, Sr. Director at  SafeSourcing.

For companies with numerous locations, the need to reduce utility costs and improve facility efficiency is very important in order to remain competitive.  Reviewing utility bills and purchase negotiations are labor intensive and often outside the scope of most accounts payable departments.  Therefore, there are other methods your company can explore.

One method to get your company’s energy cost under control is to identify potential companies that can provide complete management of Utility Bill Processing and Analysis tasks so their clients are able to focus on proactively driving cost savings and facility efficiencies. Utility Bill Processing and Analysis provides a fully outsourced payment solution with detailed data capture, robust reporting and best in class analysis capabilities. These companies consolidate thousands of invoices into one simple invoice for their clients to process and then can provide an automated feed of data to your company’s accounting software. Clients can therefore better track how each location manages energy costs and consumption.

Another method for reducing energy costs is to identify potential companies that can manage setting up or closing out utility services.  Energy Supply Management companies can insure that your company is starting out with the right rate schedule for the size of your business as well as negotiating to waive or lower opening deposits.  These companies will also work to ensure all deposits or refunds are credited appropriately.    In addition, ensure the locations that are closed are no longer being billed.

Additionally finding companies that will combine and tender your company’s energy requirements to a preselected group of large-scale energy providers for multiple-year increments will help reduce your company’s energy costs. They will then choose the most beneficial energy provider based on specific value-added criteria including;

•   Lowest price
•   Rate of margin attracted by the wholesaler on a per kWh and per GJ basis for any new Energy client that may come on board after the aggregated purchases
•   Reliability and accuracy
•   Detailed billing and consumption data feeds

Weather you explore one method or all of the methods, SafeSourcing can create for your company a RFP that will compare service and pricing structures.  We will than normalize the data and compress the pricing of the potential vendors.

For more information on how we can help you with your procurement needs or on our “Risk Free” trial program, please contact a SafeSourcing Customer Service Representative.  We have an entire customer services team waiting to assist you today.

We look forward to your comments.

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