Does Your Bank Have an Energy Management Strategy in Place?

Does Your Bank Have an Energy Management Strategy in Place?

For many of you, an energy strategy that makes sense, saves you time and money, and increases efficiencies and sustainability is already on your short list for goals, whether that means re-tuning your current strategy or building one from the ground up. But for others, it may seem more daunting in nature, or one of those cost-effective measures that you know makes sense, but regardless you still let slide to the back-burner month over month, year over year. Let’s take a closer look at the core motivators in securing smarter energy solutions. 

Minimizing Budgetary Risk on the Procurement Process 

Did you know that organization leaders in deregulated energy markets have the flexibility to create energy management strategies that align with community goals, budgets, and fiscal calendars?

There are numerous benefits to energy deregulation and procurement, such as negotiating lower prices for electricity and natural gas, peace of mind provided with minimized budgetary risk, and a worry-free, fixed, all-in pricing, to name a few. Effectively managing energy supply contracts yields substantial cost reductions and improved business performance. Despite these benefits, deregulation can sometimes lead to confusion and misinformation on your end, which stands to reason.  

When to Take Action

A common misconception centers around the timing of when energy supply agreements can be executed. Many executives and leaders believe they must wait until just before their current contract expires to decide what to do next. They are not aware they can begin the process much earlier, in fact, at any time during their current contract term.

Favorable electricity price trends also greatly determine when business leaders evaluate prices and suppliers, as well as when to go the route of a consultant. A core component of risk management is mitigating exposure to volatile energy prices that can cause budget uncertainty and operating cost increases. The question is, do you have adequate time and knowledge to track energy price trends and compare suppliers? For an organization that consumes one million kilowatt hours of electricity annually, the cost difference between supplier price quotes could be several thousand dollars annually.

An integral component of an energy management strategy is to seek consultation regarding market timing, the procurement process, and suppliers and supply contracts. Leaders that are proactive have a competitive advantage when addressing their energy supply needs. They are positioned to make more fully informed decisions that decrease costs and provide improved budget planning and forecasting.

Make an Energy Management Strategy a Priority 

Energy is among one of the biggest cost factors of a business, large or small, but ironically enough it’s also one that isn’t always a top priority. Re-prioritizing how your organization approaches energy management and spend is the first step, but how do you move from talking about energy strategy to executing on smarter strategies? 

Start by exploring your current energy costs, demand, objectives and issues so that you can make informed decisions about how to move forward. No two businesses are the same, and no two strategies are alike either so think in terms of what works for your bank, your team, and your budgetary goals and objectives. Exploring your options is a great first step in any process, and energy management is no exception to that rule.

A great place to start is by contacting our team. To secure your complimentary assessment, chat with us online here, email, or call 800-520-6685.