Why Do Businesses Choose to Buy Electricity with FirstEnergy Advisors?
Once you buy your first business electricity contract with FE Advisors you can sit back, and relax. The technology takes control, monitoring the market and alerting you to your next opportunity. You will never have to make a hasty buying decision again!
Save Money
Buy business energy contracts intelligently with smart technology that recommends opportunities when markets are at the optimum price point.
Centralize and Control
Centralize your energy contract data for all of your locations into one platform and receive digital reports on pricing opportunities and portfolio performance.
Choose from Top Suppliers
Gain access to a network of over 30 reputable and vetted commercial electricity suppliers, all working through Sherpa by FirstEnergy Advisors™.
How Do I Change My Business Electricity Supplier?
FE Advisors has created the Real-Time Business Price Comparison Tool to make the process of changing commercial electricity suppliers as simple as possible.
Once you select a rate from the list, a digital report will be sent out for you to sign—no paperwork, no scanning, no headache. When you choose to switch, there will be no disruption to your electricity service, and you don’t have to contact your existing supplier. The entire process is a breeze!
In which deregulated state does FirstEnergy Advisors™ provide pricing?
FirstEnergy Advisors™ provides competitive supplier pricing for residential, commercial and industrial customers in Pennsylvania exclusively.
What Types of Business Energy Plans Are Available?
If you’ve decided to take the leap and change your energy plan, it’s essential to know your options.
All-In Fixed Rate
In an all-in-fixed-rate plan, the cost of each unit of gas and electricity will remain constant for the contract term. The price does not change regardless of the volatility in the market. These plans offer terms ranging between 6 and 60 months and are best suited for businesses looking for budget certainty and protection against price hikes. They are also often the cheapest plans available. Note that all-in fixed-rate plans often incur cancellation fees if you wish to optout before the end of your term.
Fixed with Pass-Through Rate
This is a blend of fixed and pass-through plans that includes fixed-rate components and pass-through charges. There is limited certainty compared to a full fixed price option because your business is taking more of the risk, which may increase your electricity bill. Ultimately, the blend is designed to help businesses secure a portion of their costs and then use market pricing to find lower rates. With rising market prices, this strategy could increase high-priced risk.
5 Ways to Reduce the Cost of Business Energy
Reducing your business’ energy consumption can help you reduce your electricity bills and minimize your carbon footprint. Here’s how you can effectively do so:
1. Change How You Use Lighting
Lighting consumes a lot of energy and, on average, makes up around 40% of your electricity bill. You can curb usage by encouraging your employees to always switch off the lights in rooms that are not in use. You can also switch to automatic light sensors.
For additional savings, opt to maximize natural lighting and switch to energy-efficient LED light bulbs. These use a fraction of energy compared to traditional bulbs and can drastically reduce energy expenses.
2. Heat and Ventilation
The easiest way to save electricity is to turn down the heat or A/C by two degrees. Intelligent heating, ventilation, and high-quality air conditioning systems can help you use less energy by moderating the temperature in your business so it’s never too hot or cold.
3. Switch Off Equipment Not in Use
Leaving computers, printers, and photocopiers on standby can consume a fair amount of energy. Turn off all devices when not in use, even for a short period.
Replacing traditional devices with energy-efficient ones can also go a long way in reducing energy wastage. Using laptops instead of PCs can significantly reduce energy consumption.
4. Educate Your Team
If possible, integrate energy efficiency into company policy and culture. If everyone in your facility is mindful of energy waste, you can cut down costs.
Make it a group effort to ensure that devices not in use are switched off, and take other simple steps to conserve electricity.
5. Get a Better Deal
No matter how hard you try to reduce your energy consumption, if your supplier’s prices are high, you may not make a dent in your expenses. In such a situation, explore the market and find a supplier that will offer you a better rate for your business plan.
Why Are Business Electricity Rates Lower Than Residential Rates?
Suppliers are willing to offer lower pricing to businesses because they typically use both a higher volume and more consistent level of electricity. Electricity is generated for the masses and needs to be consumed in its entirety to be used efficiently. Less lines and wires to central industrial or commercial areas also help reduce costs.
Residential usage is less efficient and consistent over the day/week or/month. Supplying electricity to lower-use, less-efficient customers costs more and demands higher prices.
What Is the Difference Between a Supplier and a Utility?
The utility controls the way electricity is transmitted and distributed. It owns and operates the power lines through which electricity is delivered while keeping the cost of infrastructure low. Your local utility owns and services the distribution system to your home or business and can either directly deliver your electricity to you or do so through a supplier.
Utilities also handle emergency situations and power disruptions and read your meter. Meter reading frequency depends on the utility that distributes electricity in your area.
The supplier is often one of several competitors seeking to sell the electricity generated by power plants.
Deregulated markets allow you to choose your supplier while the utility remains the same.
Why Does Deregulation Exist?
In the late 1990’s various states passed legislation allowing for the separation of the electric utility into supply and distribution components. While utilities maintain wires and distribution networks, supply from power plants was deregulated, allowing customers to receive generation pricing from their utility or from other retailers or brokers. In essence, customers were allowed to shop for their generation needs from many suppliers. This market is overseen by the Federal Energy Regulatory Commission (FERC) and energy generation supply is traded hourly through regional energy markets. A supplier may produce electricity if they own an electricity-generating power plant.
The power delivered to your home comes from this market. This is done through a default supplier or an agent for a supplier with whom you have a contract. If you choose to shop, your supplier then compensates your utility for the electricity you use under your contract.
This is done in two ways: by arranging for a power plant operator to produce and place an equivalent amount of electricity for the utility’s credit onto the grid or directly compensating the utility for their delivery.
You receive the same electricity from the utility regardless of what supplier you choose, as it comes from the grid in your area. However, you may get it at a much lower cost through a supplier than if the utility remained a vertical monopoly.
In a vertical monopoly situation, the utility would own the power plants and the transmission and distribution system, while suppliers circumvent the power plant.
Suppliers offer different pricing options in a competitive market, so their rates are current and reflect the future more closely.
