Deregulated electricity markets offer electricity procurement choices. A variety of choices are available through retail suppliers. Take advantage of the right to explore all options when it comes to choosing a plan and a provider.
Purchasing energy can be tedious and time consuming. Energy has become an asset and needs to be managed. Through our process we are able to provide strategic solutions to help lower your energy costs.
Understanding the Basics of the Electricity Market
Deregulated electricity markets offer electricity procurement choices. These product choices are designed to help business owners and energy managers take advantage of the opportunities created by the volatility of the wholesale electricity market.
A variety of choices (commonly referred to as electricity products) are available through retail suppliers. Become familiar with the choices available to you. Then, consider how the products fit with your unique business objectives, factoring intolerance to risk, financial objectives, and business goals.
What Moves the Market? Just like in the financial market place, electricity is driven by basic supply and demand principles. However, because electricity can’t be easily stored, the market can’t even out fluctuations by drawing down reserves, resulting in more frequent and dramatic price changes.
Electricity generally follows a seasonal cycle: Demand for electricity and ensuing prices rise during peak heating (winter) and cooling (summer) seasons and drop during transitional seasons (spring and autumn).
The market is affected by a broad variety of factors. Changes in one of the following can intensify volatility and lead to dramatic price changes.
- Source Fuels: Because source fuels like coal, natural gas, and petroleum account for 71.5% of electricity generated in the U.S.1 as well as heating and cooling, dramatic movement in source fuels also impacts the electricity market.
- Weather: Weather is one of the most influential variables on the market place because it directly affects energy consumption (demand). Extreme weather such as hurricanes, floods, and blizzards also create periods of extreme price volatility, especially if they interrupt natural gas production facilities that provide source fuel for electricity generation(Limiting supply) or damage electricity transmission and distribution infrastructure (reducing supply and limiting the flow of electricity).
- Geopolitical Events: Political unrest, war, hostage crisis or other events in regions that export natural resources can affect the energy market. The events typically impact the market immediately, which can affect short-term prices. Prolonged unrest will produce prolonged uncertainty, which can lead to wholesale market increases over the long-term.The factors affecting the electricity market can be overwhelming. However, shifting conditions are also sources of opportunity for electricity shoppers. The cornerstones to developing a successful energy strategy are understanding the energy options available and your selection of a reliable energy consultant who can offer you good advice.
The factors affecting the electricity market can be overwhelming. However, shifting conditions are also sources of opportunity for electricity shoppers. The cornerstones to developing a successful energy strategy are understanding the energy options available and your selection of a reliable energy consultant who can offer you good advice.
HOW CAN WE HELP
- Energy Audit: We review your past invoices and identify your most attractive purchasing options.
- Bid Selection: We have access to the top tier energy suppliers and trading desks in the country. We will provide you with the top three bids from our pool of providers.
- Proposal: We recommend the best option for you. When working with Solo Energy Solutions Corp, you will receive direction and support, not just a list of confusing choices.
- Support: We continue to explore additional ways to lower utility bills for your company. If a better energy price comes along we will inform you of an opportunity to save. Our proactive approach puts you in the position to capitalize on energy procurement opportunities as they arise.