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Electricity Cost Components And Risk Factors

Buying electricity for your business can be complicated, even for buyers with decades of experience. The purchase of electricity has a number of variables and many of those variables and cost components change—sometimes quite drastically.

Altogether, your total energy price is dictated by 15 to 30 separate cost components. But those costs come in two basic categories: Delivery and energy. Delivery cost changes are typically passed onto the consumer. But you have more flexibility when it comes to pricing your energy supply.


Understanding Electricity Costs
Between 15 and 30 different factors determine what you will ultimately pay for your electricity. The first step to a great decision is to understand exactly what goes into the cost your business pays for electricity.


Balancing Contract Risk and Reward
Whether buying for one location or a thousand, it's important that you get a contract with the kind of risk exposure that's right for your enterprise. Only when your energy strategy aligns with your business drivers can you make the best choice possible.



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