Benefits of Working with an Energy Advisor
By Sean Lovett
In the world of competitive energy procurement, there are a wide variety of techniques and strategies involved with achieving a client’s energy goals including reducing their overall energy spend and supporting their sustainability objectives. Some end users may opt to work directly with a supplier to find the lowest rate. It is sometimes a strategy that can work in their favor but may prove to fall short as a long-term solution.
Below are three key differences between working with an Energy Advisor and working directly with an energy supplier.
1. Contract Language
Suppliers in the deregulated energy market all have different contract language. When comparing rates from multiple suppliers, it is crucial to comb through each agreement to understand the risks as well as what future charges may not be included in the agreement. A rate is only as good as the contract behind it, and the lowest price will not be the lowest cost if the language does not support it.
Many of the agreements we offer at Freedom Energy are ‘pre-negotiated’ for more favorable terms than if clients were to receive a quote through another channel. When working with an Energy Advisory, like Freedom, the focus is on the contract language of each supplier and finding the appropriate options for the client. Energy Advisors are supplier agnostic, and work on behalf of the client.
Knowing the major suppliers and understanding their contract language, an Energy Advisor can help guide you to the proper agreement and advise you on the solution that best suits your business goals and energy objectives. Working directly with a supplier, you do not have access to advice on the potential shortfalls in their agreements, and the supplier representatives work for and endorse the suppliers they serve.
2. Market Guidance
A critical component for energy procurement is timing. An Energy Advisor’s job is to partner with you to help identify when to purchase and which supplier can best achieve your objectives. By working with an Advisory like Freedom Energy, your Energy Advisor can alert you to which suppliers are the most competitive in your zone (price and language) and provide market guidance.
Take for example when the NYMEX natural gas market hit a 25-year low in the summer of 2020. At the time, this event could have had a significant impact on lowering a client’s energy spend for their next electricity and natural gas agreements – if properly acted upon. For agreements set to start in November of 2020, if working with a supplier, chances are they did not reach out to their clients about renewing early even though this was an optimal procurement window. Working with an Energy Advisor can help to pinpoint the market lows. An Advisor can recommend when to proactively procure your next contracts, creating both short- and long-term solutions for lowering your energy supply spend.
3. Supplier Advocacy and Negotiation
Issues can arise throughout the term of your agreement (i.e., dropped account numbers, early termination fees, and additional charges). Your Energy Advisor serves as your main point of contact working with your supplier of choice to avoid any additional fees and to reinstate accounts. In addition, during the contracting process, your Energy Advisor will advocate for you to negotiate the best rate possible with the supplier.
Working with an Energy Advisor, you can experience many different suppliers over time through one central contact. In other words, you can work with Freedom Energy for a decade and have one advisor but experience many different suppliers. Should you choose to work with suppliers directly, relationships with each supplier would have to be forged each time you change. As a leading Energy Advisory, Freedom Energy Logistics has established relationships with all the major suppliers and has been working with them for years.
If your business, organization, or non-profit is looking for short or long-term solutions to lower electricity and natural gas spend, contact Freedom Energy Logistics to speak with an Energy Advisor to find the solution that suits your energy goals and sustainability objectives.
About Freedom Energy Logistics: Founded in 2006, Freedom Energy Logistics is a leading energy advisory. The private company offers comprehensive energy supply management and renewable energy solutions supporting energy goals and sustainability objectives for businesses and organizations throughout the U.S. Freedom’s team of energy experts has worked with and delivered energy saving, environmentally responsible solutions for some of the largest commercial and industrial companies, municipalities, universities, healthcare facilities, and businesses. With its headquarters located in Auburn, NH, Freedom Energy also has employees serving clients locally throughout the regions. Freedom Energy has been twice named to the Inc. 5000 list of fastest growing companies in America; recognized as one of the Fastest-Growing Family Businesses in NH by Business New Hampshire Magazine. Stay Work Play’s Coolest Company for Young Professionals; and received multiple Business Excellence Awards from New Hampshire Business Review. For more information, visit www.felpower.com.