Advice to CRA members as you evaluate energy purchasing propositions:
The deregulated energy market in Connecticut offers business owners the opportunity to better manage one of their most expensive fixed costs. What comes with that opportunity is confusion and sales tactics from a number of companies and individuals. If you have already been approached, you might be trying to determine if certain proposals are in your best interests.
Based on our market observations, here are some tips and advice for your consideration:
- Enter into agreements only with companies you know and trust.
- Do not sign or initial anything unless you have read it carefully and in its entirety.
- Scrutinize any exclusivity agreement. Many are onerous and can bind you to a broker for up to one year plus the full term of any supply agreement undefined a potential six-year commitment. Termination often takes effect only at the end of the supply agreement and can require up to 180 days’ advance notice.
- Make sure you provide exclusivity for securing quotes only. Many agreements give brokers full discretion to enter your company into a contract without informing you of the terms, conditions, or costs before execution.
- Analyses that show savings based on prior year prices are helpful and directional but they do not guarantee future performance.
- Make sure you are absolutely clear about other charges undefined in addition to the fixed price undefined that will be passed on to you in any supply agreement. What appears to be a reasonable price can rapidly escalate when ancillary costs are figured in.
We suggest you call us before signing anything. We have the expertise and would be happy to help you assess any energy proposal you receive. Our main concern is that, as a CRA member company, you are fully informed before entering into any energy agreement or contract.