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Many times material change language is broad enough that it touches upon several aspects of the supply agreement. If there is a change in the operations of the company, such as increases in production lines or shutting down of a facility, this can be interpreted as a material change by the energy supplier.
The concept of “usage bandwidth” has to do with the certainty of how much energy you will use (electricity or natural gas) in any given month.
Energy Procurement Mistake No. 2: Missing the Most Competitive Rates We’ve all experienced it: that moment we realize we paid more than we should have. We thought we did our research and negotiated well, but it turned out that someone else got a better deal. If you’ve been getting bids on electricity supply for years, […]
Add/delete language is of primary interest to organizations with a significant number of energy accounts.
Termination fees assessed by an energy supplier don’t just apply to the overall contract, but typically apply on an account-by-account basis.
Through an ongoing series, we will explore the five key clauses that must be mastered in order to negotiate successful energy supply agreements.
It is a common practice when procuring goods and services for an organization to be reactive. This means that you are either responding to a request from an end-user department for a particular product or service – or that you are planning the procurement process based on the expiration of the current contract.
For the free market to work its magic in establishing prices through the force of supply and demand, you have to have several key ingredients – one of which is an informed buyer. As a buyer of energy, this means that to have the best chance of success in achieving the best pricing, you must […]
ERCOT projects reserve margins to be 10-18% over the next five years with the improvement between Summer 2020 and Summer 2021 primarily attributed to the near 5,000 MW of solar capacity and 700 MW of new wind capacity expected to come online.
Many electricity markets follow natural gas markets as the majority of the generation is fueled by natural gas, and those gas generators set the price of power as often as 80% of the time. However, as energy markets evolve, this historically tight correlation has broken in some regions, namely ERCOT.
