Is it not true, the more you buy the lower price? It may be shocking to learn, when it comes to shopping for business electricity, quantity does not necessarily get you the best price.
Electricity is Different
Electricity is a perishable commodity. Electricity cannot be stored easily. Electricity must be consumed when it is generated and transmitted, or it is gone. Because of this, it is more important to price on timing of the usage vs. the amount of electricity used. Power plants feeding the grid have a limited capacity. Supply is fixed and the demand can vary. Electricity costs can fluctuate depending on the time of day, day of the week, and time of the year.
Peak and Off-Peak Usage
Usage during peak times and off-peak times. Electricity prices are created for peak and off-peak periods. The more electricity you use during peak times, the higher your price might be.
Many commercial businesses follow a usage pattern that follows the demand pattern of the power grid. Weather can be a significant factor with power grid loads. Some stores use most of their electricity at night . Schools are closed in the summer when prices are at the highest point. Lucky them! A church building may benefit from a plan that offers it’s best rates on the weekends.
Constant Electricity Usage
Some businesses may benefit from using relatively constant levels of electricity throughout the day. Hospitals benefit from a more uniform usage of electricity over the peak and non peak periods of the year. Wal Mart like stores also benefit from maintain a relatively uniform usage during all pricing periods throughout the year.
More Electricity for Less Money
As you can see, Electricity is a tricky commodity. More electricity usage does not necessarily equal more savings. Timing is just as important or even more important than quantity. Be sure to read the electricity plan details to make sure each plan matches your business needs.
