Addressing Your Customers' Unmet Energy Needs
In regulated markets, legacy utility providers are the main point of contact with customers. In deregulated markets, Competitive Energy Suppliers have become the primary point of contact with customers. BMA's principal has represented a large regional consumer in their interactions with over 200 regulated and deregulated utility providers for over 15 years.
The core role of the utility provider is to arrange for power to be delivered to the customer under pricing, terms and conditions that are mutually agreeable or are tariffs. But often times the customer also looks to the provider for unrelated assistance. Rather than viewing the customer’s inquiries as opportunities for adding value, the CES or utility often explains in great detail why they cannot help, e.g. legislative restrictions, market rules, credit risk, or lack of access to detailed information.
However, utility expenses rank near the top of the list for many commercial and industrial (C&I) customers, often right behind labor expenses and cost of goods. Their need for assistance is profound, and can be viewed opportunistically. Most C&I customers have acknowledged the value of controlling energy expenses, and are trying to act on that knowledge. However, utility expenses are seldom close enough to the core competency of the business to attract sustained attention from senior leadership.
In truth, a lot of the utility expense paid by C&I customers is needless and adds nothing to their business; it is the definition of waste. It may be possible for the provider to help the customer achieve identical business outcomes while incurring less utility expense, and the correlation is direct – every wasted energy dollar that can be saved becomes profit for the customer. Fees paid by the customer to achieve these savings would be miniscule in comparison. A few examples of unmet customer energy needs include the following, and BMA's principal has dealt with every one of them:
Typical Scope of Services
The core role of the utility provider is to arrange for power to be delivered to the customer under pricing, terms and conditions that are mutually agreeable or are tariffs. But often times the customer also looks to the provider for unrelated assistance. Rather than viewing the customer’s inquiries as opportunities for adding value, the CES or utility often explains in great detail why they cannot help, e.g. legislative restrictions, market rules, credit risk, or lack of access to detailed information.
However, utility expenses rank near the top of the list for many commercial and industrial (C&I) customers, often right behind labor expenses and cost of goods. Their need for assistance is profound, and can be viewed opportunistically. Most C&I customers have acknowledged the value of controlling energy expenses, and are trying to act on that knowledge. However, utility expenses are seldom close enough to the core competency of the business to attract sustained attention from senior leadership.
In truth, a lot of the utility expense paid by C&I customers is needless and adds nothing to their business; it is the definition of waste. It may be possible for the provider to help the customer achieve identical business outcomes while incurring less utility expense, and the correlation is direct – every wasted energy dollar that can be saved becomes profit for the customer. Fees paid by the customer to achieve these savings would be miniscule in comparison. A few examples of unmet customer energy needs include the following, and BMA's principal has dealt with every one of them:
- Managing Electric Costs and Understanding Cost Components: Many of your customers do not have a good understanding of their electric utility spend, from a historic data management perspective. Nor do they understand the costs or benefits of “demand response” programs offered in the utility industry, or if these programs would be useful.
- Managing Electricity Usage: Few of your customers have a working knowledge of their historical usage patterns. The data from utility bills is seldom analyzed in any meaningful way.
- Managing the Billing and Payment Systems: Most of your customers have not examined the potential value of EDI or other automated billing/payment systems for utility expenses.
- Managing Risk: Some C&I customers operate without the guidance of a strategic energy buying policy that addresses risk tolerance, desired outcomes, etc. They don’t understand the importance, and they don’t know how to approach the topic.
- Renewable Energy: Some C&I customers also either need, or want, to move their energy supply toward a more “clean” or renewable portfolio mix, in a way that is measurable and transparent. Few understand how to evaluate and optimize these decisions.
Typical Scope of Services
- Initial discussions with corporate executives (CEO, CFO, or COO level) about specific topics of interest, and format for on-site work session.
- On-site meetings and discussions, followed by subsequent phone and electronic information sharing.
- Fees can be negotiated to suit the client’s needs, either on an hourly or daily basis.
