For most mid to large facilities, energy isn’t just an overhead cost – it’s a significant line item in the budget that requires strategic management. There are countless pricing models that offer the potential for low year-over-year energy costs. But Direct Energy Business President John Schultz recently discussed his number one energy management strategy for large businesses, and it has very little to do with the kilowatt-hour price. Tune in below for his remarks.
Acquiring a low kilowatt hour price is important. But a large portion of the electricity bill is influenced by your facility’s consumption during just a handful of hours each year when consumption is at a maximum across the grid. The more energy you consume during these peak times, the higher your mandatory fees.
As Schultz explains: “The single best strategy that larger energy consumers should be looking at in this kind of environment is what we call ‘Peak Load Management.’ Many charges like transmission and distribution are set off what is called ‘coincident peak’, meaning utilities look at your peak during the system peak to figure out how much you should pay for the next year.”
It’s a harsh reality – mandatory fees that make up as much as 50 percent of your monthly bill are calculated based on peak hour consumption. It’s why Schultz is laser-focused on helping businesses manage and minimize this cost.
How does Peak Load Management work?
In order to manage peak load consumption, organizations first need granular transparency into where they are using energy and how much. These insights paired with forecasts of when peak load days are likely to occur enables organizations to proactively curtail energy usage – and do it at the most opportune moments.
Direct Energy Business is helping consumers do just that. Customers use proprietary software to track energy usage in real time and receive alerts when grid peaks are likely.
“If you can actively manage your peak during that time, you can materially influence the bill,” Schultz says. “We’re working with customers to give them absolute transparency and clarity around their consumption at a very granular and real-time level.”
According to Schultz, Direct Energy Businesses’ Peak Load Management is leading the industry by helping customers meet and beat their energy management and budget goals.
“It’s all very simple and effective,” Schultz observes. “We believe the power is shifting to consumers and we’re really pleased to be a part of that.”
Learn about Direct Energy Business strategies online or call 855-399-9741 to get a customized quote.