Everything You Should Know When Negotiating Energy Supply Agreements
Posted by Tradition Energy
Several aspects of energy agreements can easily trip up even the most seasoned procurement professionals. Unless you are aware of some key terms and slight verbiage adjustments that can drastically affect the price you pay on your bill, you could walk away thinking you secured a good deal – when the agreement tilts in the supplier's favor.
The same focus applies when negotiating an energy supply agreement, such as electricity or natural gas. Everything seems to come down to price. After all the talk and all the negotiation, ultimately, the decision comes down to one question: "What am I paying?"
It's Business, Not Personal
Like almost any industry where the customer pays for some service regularly, energy suppliers often treat penalties and fees as a source of revenue. The first thing to be aware of is that energy suppliers may try to capture revenue through additional fees resulting from agreement terms more favorable to them than the purchaser. This process isn't to suggest that suppliers are sneaky or underhanded. It's just business.
The five elements below can result in additional fees depending on how you negotiated your agreement. While many terms comprise an energy supply agreement, a handful directly affects what you pay monthly.