Energy procurement can be a complex and overwhelming task—from the time-consuming and costly RFP process, to navigating the energy market, to understanding government regulatory compliance. As a result, many municipalities and other governmental agencies have joined an aggregation program to help streamline their procurement process. However, this approach does not always provide the best value for your energy dollar. Here are three important points to keep in mind when weighing your options:
A similar situation occurs in the healthcare industry. In a health insurance pool, the cost of covering a healthy 25-year-old is less than the cost of covering a 55-year-old. If they both pay the same premium, then the younger member is essentially subsidizing the cost of covering the older member.
Aggregators and less-qualified broker firms do not provide transparent technology or risk management services when forming an aggregation.
Whichever approach you take, it’s helpful to have an experienced firm guide you through the procurement process and make sure you’re getting the best energy rate and terms possible, reputable energy firms will: