TOTALLY AVOIDABLE: Never Let Energy “Sticker Shock” Happen Again

If your energy contract ends in the next 18 months, you should be in emergency mode to manage away from risk and start budgeting for potentially large energy-price increases. And your phone or your inbox should be full of communications to assess this risk while you still have options!

If your energy consultant or in-house energy procurement team is not raising the alarm bell loudly at this very moment, then you are about to walk into a 30%-100% electricity and natural gas rate increase compared to your last agreement. Yet this is TOTALLY AVOIDABLE, if you address this situation now by abandoning whatever approach you are currently taking and work instead with a company that provides proactive information and options on market fundamentals so your budgets can stay intact.

Consider the following:

“Businesses that do nothing to manage their energy costs today could wake up to energy supply charges 20-30% higher this winter than what can be secured right now in today’s markets.”

You know who said that? I did.

Do you know when I said it? September 8, 2020! (And, by the way, it’s just as true today as it was back then.)

That’s right. For nearly two years, Transparent Energy has been repeatedly sounding the alarm to any large energy buyer who would listen that a) the historic natural gas and electricity lows of the summer of 2020 were a temporary phenomenon and b) that the best possible course of action was for buyers to “go long,” locking in those low prices as long as possible, hedging, i.e. reducing risk, against rising prices.

Many large energy buyers listened. In fact, thousands did. We’ve noticed it in our 2022 deal flow. While Transparent Energy transacted record energy volumes for clients in Q1 of 2022, a large majority of that deal flow was from new customers. That’s because we had already taken care of many of our existing customers: squaring them away with multi-year electricity and natural gas contracts so that today’s prices which are anywhere from 20-100% higher (with futures pricing still posing considerable risk), aren’t impacting their businesses.

Which brings me back to you. If you are reading this article and this is the first time you are being forced to consider that you face a potentially very large energy price increase unless you address this now – give us a call. We will share data and facts with you to consider, as well as a proven procurement methodology that can secure your power needs at a reasonable rate while you still have an opportunity –  but the time is NOW!

Still not convinced? Consider this:

The Federal Government has been sounding the alarm for businesses across the country via two key communications. First, the Federal Energy Regulatory Commission (FERC) recently issued its 2022 Summer Assessment warning of “summer volatility.” That unsettling report was quickly followed by another from the Energy Information Agency (EIA), this time forecasting “price volatility” for the balance of 2022! Both assessments follow:

FERC Staff Issues 2022 Summer Assessment