Many business owners and facility managers wonder how they could secure a better electricity rate than their local utility, which purchases power in massive volumes. It seems logical that larger-scale buying would lead to lower prices—but when it comes to electricity procurement, volume doesn’t always equal better leverage.
In fact, you have two key advantages over your utility:
- A unique energy profile – Your consumption pattern isn’t a one-size-fits-all scenario.
- The ability to time your purchase – You’re not locked into a rigid procurement schedule.
Your Energy Profile Matters
Utilities categorize customers into broad rate classifications (residential, commercial, industrial, etc.), and your electricity rate is based on the average cost to supply all customers in your category. But even within the same classification, no two businesses use electricity the same way.
For example, consider three businesses that each consume 1,000,000 kWh annually:
- An office building using most of its energy from 8 AM to 6 PM
- A laundry service running three 8-hour shifts
- A bakery peaking between 10 PM and 6 AM
Each of these businesses has a unique load profile, affecting the cost to serve them. In the competitive market, pricing is based on your individual energy usage, not an average across multiple customers. That means you can often secure rates better suited to your actual consumption.
Timing is Everything
Another key advantage is when you buy your power. Utilities procure electricity on a strict schedule, typically through annual or semi-annual auctions regulated by state public utility commissions. This process can lock in rates at less-than-ideal times in the market cycle.
As an independent energy procurement expert, OES helps clients strategically time their electricity purchases to capture market dips and avoid price spikes. Our market knowledge allows us to optimize contract execution, securing lower rates and better terms than the utility’s default supply offer.