Picking a Supplier: 5 Things to Consider

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We’ve talked at length about just how crucial it is for you and your business to find an energy supplier so you can begin regaining control over your energy expenses. But what’s the best way to go about selecting a supplier? Here are five things you should take into consideration.

1. Contract language

One of the most important aspects of supplier selection is the contract language. While many of the supplier’s energy contracts contain similar terms and conditions, there are a number of areas that can differentiate suppliers. For example, some contracts are more explicit in their regulatory change and pass through disclosure.

2. Financial health

Another important consideration lies with the supplier’s financial health. Financially healthy suppliers are more likely to offer more favorable pricing due to their buying power in the wholesale market. Also, the possibility of losing a supplier in the middle of a contract can be frustrating (if not devastating) when you’re faced with default rates or pricing in a high market situation.

3. Pricing history

A comparative pricing history of suppliers in your local delivery company’s territory is invaluable in narrowing down the field when choosing a supplier. Most businesses do not have the daily exposure to the supplier community for this comparison and are best served by relying on their professional procurement consultant for this information.

4. Market knowledge

Professional energy consultants also monitor regulatory issues and factors them in to the analysis to mitigate the impact on the energy contract price and to exposure to future pass through costs.

5. A time-saver

Laura McPhee of Parts Pro Automotive Warehouse can point to another thing to think about when picking a supplier: How much time are they going to help you save? She’s in the business of selling automotive parts, not energy. So, she appreciates how much time she was able to save by using COSE’s Energy Team to take care of the legwork when it comes to setting her company’s energy strategy. “It was pain free,” she says of working with COSE. “I didn’t want anything dragging me away from my desk for hours.”

COSE members have access to several programs designed to ensure you’re maximizing your energy. Contact us at 216-592-2205 or energy@cose.org to learn more.