• 6 min read
5 Mistakes Companies Make with Their Energy Bills
Commercial energy bills are full of moving parts: commodity rates, demand charges, capacity, transmission, and fees. Most companies focus only on the headline rate and miss the structural drivers that inflate costs. Avoid these five mistakes to capture real, lasting savings.
1) Accepting the First Renewal Offer
Auto-renewals and quick-sign offers usually aren’t the lowest price. Create competitive pressure by requesting quotes from multiple suppliers on the same day, with standardized terms and a clear comparison of total landed cost.
2) Buying the Wrong Contract Structure
A fixed rate can be great for certainty but may overprice variable loads. Consider block-and-index or index-plus to balance stability with opportunity. The best structure matches your load profile, budget needs, and risk tolerance.
3) Ignoring Demand and Capacity
Demand spikes can set charges for the whole month. Stagger equipment startups, shift flexible processes off-peak, and use data to find the hours that repeatedly drive peaks.
4) Missing Hidden Fees and Pass-Throughs
Two quotes with identical commodity prices can produce different bills because of fees, basis, balancing, or pass-throughs. Always evaluate the complete offer, including non-commodity components.
5) Waiting Too Long to Plan
Good outcomes start early. Set reminders 120/90/60 days before expiration, watch market signals, and be ready to layer purchases when pricing hits your target band.
For a broader strategy overview, read How Commercial Property Owners Can Cut Energy Costs in 2025 and compare commodity types in Gas vs. Electric. If you’re preparing to change suppliers, don’t miss What to Know Before Switching Providers.
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