Whether you’re running a chain of small stores or opening your first storefront, you’re bound to get more than one offer for retail electricity service.
Here are a few tips to help you get the right plan for your business:
What’s your all-in rate?
Electricity bills for your small and medium-sized business include:
- Energy Charges from your competitive retail electricity provider.
- Delivery Charges from your regulated Transmission and Distribution Utility.
- Discretionary fees from some retailers.
Compare offers that include the same factors and understand retailers’ rules for discretionary fees. TXU Energy doesn’t charge for such things as telephone assistance or extra bill copies.
Compare like term lengths and understand what happens at the end of your contract. “Teaser” rates can end up costing you more money in the end.
Also, lock-in a long-term plan while rates remain at historically low levels.
If you’re lucky enough to own a nice, big boat, you know that you have to pay all year long for that dry dock even though you only use it a few months each year. Demand Charges from your regulated Transmission and Delivery Utility work in a very similar way. Demand Charges, which your TDU uses to determine your Delivery Charges, are based on your actual electrical demand per month or 80 percent of your highest demand for the past 11 months. Your retailer can’t change that so don’t fall prey to such promises.
Compare retailers’ experience and expertise to ensure you can get help with managing your demand and limiting those charges.
Ask potential providers whether they have teams dedicated to helping small and medium-sized businesses with billing, energy conservation and other services.