Potential Impacts to Your Organization from Volatility in the Energy Market
The recent months have presented unprecedented events and impacts to the energy industry, many of which could significantly impact your current electricity or natural gas supply contract. Many of you may have already received notice from the utility about a change of your energy supplier, while others may be receiving unforeseen expenses on your bills. In the midst of it all, you may also be receiving numerous calls from energy brokers, encouraging you to take immediate action, leaving you wondering where to turn, who to trust, and what path to take moving forward. APPI Energy can help.
Key Takeaways: Review your energy bills on a regular basis and compare to your contract rate or previous month’s bill to look for new charges or line items. If COVID-19 continues to impact your business, taking proactive measures to notify your supplier of significant changes in usage may help mitigate the impact to your organization. Finally, if you get a notice from the utility about a change of your energy supplier, contact the utility if you were not expecting a change.
What’s Causing Volatility in the Energy Markets?
In a nutshell, both Covid-19 and the recent extreme weather in Texas are having far-reaching effects on businesses across the U.S., with suppliers looking for ways to recoup lost revenues or exit the marketplace. We’ll start in the south…
Texas is the home of the U.S. energy industry and leads the country in the production of oil, natural gas, and wind power, but the February blackout caused by Winter Storm Uri had major financial implications for energy suppliers, many of which are also headquartered in Texas. With billions of dollars in storm-related costs coming on the heels of massive COVID losses, several energy companies, including the oldest cooperative electric utility in Texas, are looking for ways to financially restructure, recoup lost revenues or even exit the marketplace.
Additionally, COVID-19 has impacted nearly every aspect of life, including the energy industry. Utilities in regulated markets have the benefit of regulator-approved rate increases to recover lost revenue and direct pandemic-related costs. Competitive energy suppliers have no such recourse and at least one retail supplier has begun reviewing customers’ 2020 electricity usage as compared to their contracted volumes. In cases where there was a “material” shortfall in usage, the supplier has begun imposing additional charges on affected customers to cover the difference.
For better context, ask yourself the following questions:
Since March 2020, was your organization forced to close for an extended period? Were your hours of operation adjusted as a result of the pandemic? Has the pandemic resulted in a variance in energy usage for your organization as compared to previous years? Have you notified your supplier of these changes?
What Should Your Next Steps Be?
If you know there was a significant change in your organization's energy usage since March 2020, a safe course of action is to notify your supplier or reach out to an APPI Energy consultant to assist. If you receive notice from the utility about a change of energy supplier, contact the utility if you were not expecting a change.
If talking to your utility or supplier does not sound all that appealing, our team is here to help as we continue to navigate through these unprecedented events. Our goal is to provide a fresh review of your options and to assist you in taking a proactive approach to mitigating any unwelcome changes or impacts to your bill.
It is important to note that this is of no upfront cost or obligation to you. We will simply ask you to provide our team with a copy of your most recent bill, along with a few details on how Covid-19 has affected your energy usage, and our team will take it from there.
At APPI Energy, we take great pride in our intentionally boutique approach to energy management for our clients. No two businesses are the same, and as such, no two energy management strategies should be the same either, which is why each of our clients receive customized, tailored solutions that align with their individual needs and goals. We are also continually monitoring the markets, keeping an eye on any changes that could impact our clients, either positively or negatively. With 25 years in the business and a team of experts at your disposal, we truly are a trusted extension of your team – working for you to provide the best solution for your business.
Contact us today: 800.520.6685 | firstname.lastname@example.org