Pub. 12 2013-2014 Issue 4

N e w J e r s e y C o a l i t i o n O f A u t o m o t i v e R e t a i l e r s W I N T E R 2 0 1 4 30 new jersey auto retailer Energy utilization is a substantial expenditure for the business owner, and a wise investment in this necessary resource will help to ensure long-term stability. Engaging a third party supplier can achieve price protection, budget certainty and, in many instances, savings over the ut ility rate. For all of these upsides of deregulation there are clear downsides. This is a buyer- beware market where price gimmicks, supplier departure and complex contract language are widespread problems. The winter weather of 2014 strained the pipeline, causing extreme volatility for both natural gas and electricity prices, and many suppliers are struggling to stay solvent. Reputable re-sellers are closing their doors or simply withdrawing supply from states they have been servicing for years. Abandoned customers are typically placed into unstable conditions or sent back to their local utility companyduring peak seasons. Customers are often left in the darkuntil they receivemassive utility bills in the mail indicating a major increase in their charges. Leading brokerage firms have the ability to navigate clients away fromstruggling suppliers by purchasing from the most reliable source at any given time. In many cases, top brokerage firms are alertedof industrymovement before the public is aware, leaving ample time for changes to bemade on their clients’ behalf. The secondary benefit to brokering power in today’s market is the need to properly decipher legal contracts. Oftentimes, a consumer will be presented with a “fixed” price andmaynot understand the components buried in the numbers. Unfortunately, many consumers do not recognize the implications of misinterpreting terms and conditions or neglecting to review the contract with proper guidance, until it is too late. The saving that can be achieved by fixing a power rate pales in comparison to the money that can be lost by making a purchasing error. To that point, fortune 500 companies usually have facilities By Klaudet Ristovski, Vice President, Sales & Strategy, Metromedia Energy The Value of a Reputable Energy Brokerage Firm: Priceless.