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3 Things to Consider in an Energy Procurement Contract

August 14, 2014 By Linda Hardesty

green energy manageThere are three major mistakes that some companies make when entering into an energy procurement contract, according to Nick Papamichael of Green Crown Energy.

The first is bad timing. There are very specific times of the year when electric and natural gas prices retreat and times when they spike. It’s advantageous to be aware of these times in each particular market.

The second mistake that businesses make is not negotiating the terms and conditions, including bandwidth, termination, and ancillary costs.

The third mistake, according to Papamichael, is not properly identifying and selecting the right energy product, including the many hybrid products.

Green Crown Energy also recommends that a company do a background check on any energy consulting company it authorizes to negotiate gas and electric contracts, checking to see if they are licensed and what type of experts they have on staff.

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