When going about the choosing of your commercial energy provider, many different factors can come into play. It is critical for business owners to have a basic understanding of how electric companies calculate their rates so that he or she can make the most educated decision possible. With the deregulation of the Texas energy market, businesses are more empowered than ever to shop around and make the choice on what energy provider is best for them.
It is important for a business to know the difference between a flat rate and a variable rate when purchasing electricity. If your company uses a great deal of power, it will be in your best interest to go with a fixed rate plan. This ensures that the business will be able to count on paying the same price for electricity, even if the market fluctuates. If a variable rate is chosen, then businesses can fall victim to market down periods, when they will be charged more.
Many electric companies, like the one owned by Shawn Goheen. have been known to offer businesses a discount depending on what time of day they use the most power. There are also seasons of the year in which electricity prices come at a premium. From the hours of 1 p.m. to 6 p.m. each day, these are considered the peak hours for electricity use in many communities (check your local energy providers for rates and times) and should be avoided as much as possible by an efficiently ran business. In addition, May through October are considered the peak months for electricity use and should also come into consideration in any smart business planning. Saturdays and Sundays are the days in which energy costs the least, so trying to minimize the usage of electricity on weekdays is recommended when feasible.
The TXU Energy Time-of-Use plan aims to save business owners hundreds of dollars each year on their electricity bills by making these times of day, seasons and days of the week in which to get the most out of their electricity usage known.
Electricity rates are also calculated for businesses based on the amount of kilowatts used based on square footage. For larger businesses, this is why a flat rate electricity plan is recommended. Under a variable rate, a substantially sized business could receive an electric bill large enough to have a serious effect on their bottom line for that month.
It is suggested that potential business owners research the town where they plan to open their business to determine where the prime commercial space is. Even though energy deregulation has occurred for much of the state of Texas, there are still certain areas under private or city energy control. Before an owner purchases that commercial space, he or she is urged to do the proper research and be certain of their right to shop around and choose between energy providers.