Participating in the De-regulated Energy Marketplace: Cutting Costs Without Losing Your Shirt

Abstract

This article provides vital information energy buyers need to par-
ticipate in the deregulated energy marketplace, buy energy cost-effec-
tively, and reduce commodity costs. Two energy industry professionals
with combined experience of more than 60 years present strategies and
insider suggestions to achieve best practices and gain significant savings
in energy procurement.
Describing the advantages of participating in the deregulated
marketplace, the authors discuss energy issues within businesses and
address the importance of understanding that energy expenditures, as
operating costs, can be controlled to improve profitability. Grasping
patterns in energy consumption and pricing trends, making informed
purchasing decisions, and utilizing energy efficiency and demand
response programs give energy users an advantage as they compete
in today’s business environment. Their competitors may already be
taking advantage of opportunities in the open market. By gaining an
understanding of how commodity resources (both natural gas and
electricity) are consumed and how to effectively manage and pur-
chase them, energy buyers can ultimately reduce costs and increase
profits.
To conclude, the authors demonstrate that understanding market
dynamics, taking steps now to evaluate energy needs, and obtaining the
best possible price will enable commodity buyers to reduce their energy
costs through prudent market pricing, knowledgeable hedging, and
participating in the energy marketplace without “losing your shirt.”