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Applying Free Market Principles to the Energy Sector

Dana Lucas - Friday, March 18, 2011

One of the cornerstones of Western capitalism is the concept of the free market. As any who has tried to purchase cold medicine can attest, the choices available for certain products are seemingly limitless.

Yet one of the ironies of our system is that certain areas of the economy and society fall short of the free market premise. Take education, for example. Families lacking the necessary finances are essentially forced to send their children to certain school systems.

Then there’s the energy market. Despite the mass deregulation that occurred in the 80s – particularly in the energy sector – many localized markets are still dominated by a singular provider. As advocates of deregulation note, the principles of free market economics – more customer choice, greater competition, and a more affordable product – apply to this sector just as it would any other service-based industry.

As the summer approaches, and the threat of higher prices loom, the need for greater competition – and greater energy choice – will only intensify.

Reduce Energy Costs with an Evaporator Cooler

Dana Lucas - Friday, March 11, 2011

Reducing energy costs during the summer months may seem difficult if you are in the market for an air conditioner; however, with the evaporative cooler, it just might be easy to stay cool and save!

Known as the swamp cooler, the evaporative cooler cools the air through the evaporation process of water. They cost a lot less than air conditioners and some power utility companies offer rebates if you show proof of purchase.

Through the natural process of evaporation combined with a simple air removing system, dry outside air is pulled through moist pads where it is cooled by evaporation. The cooler air  is allowed to circulate thought the room through the use of a large blower. The in house temperature can be lowered by 30 degrees.

They are mostly used in places where there is relatively no humidity such as the southwestern United States. Once the air becomes too humid outside, the evaporative air conditioner’s ability to cool the inside decreases. The outside air needs to be dry and desert like.

Evaporative cooler costs less and requires only about ¼ of the electricity. It may be a great option if you are trying to cool off your home and reduce energy costs at the same time.

Does My Service Company Lose Money If I Switch Suppliers?

Dana Lucas - Tuesday, March 08, 2011

This is a question we get asked all the time. Businesses that are able to make their own electricity choice regarding their energy suppliers will often feel that the utility company that services them might become upset if they switch energy suppliers. Some businesses have been loyal customers to their utility company for many years and feel guilty about switching.

The utility company that brings the energy to your home or business will not be impacted in any way. They encourage their customers to try and find ways to reduce energy costs. The utility companies do not make any money on the cost of the electricity that is delivered to your business. They are, actually, not allowed to earn a profit on the energy part of your bill. They would pay the same rate that you would pay and deliver to the customers who have not chosen an alternate energy supplier. Your local utility company will still be responsible for the delivery, maintenance, billing, and distribution of your electricity. So it is in your company’s best interest to begin to search for an energy supplier that has competitive rates.

Your Carbon Footprint

Dana Lucas - Monday, February 21, 2011

At this point, everyone is aware of the effects that harmful greenhouse gases have on the environment regarding climate change. We all know we have to do our part and make changes whether they are big or small, in our homes or our business.

A carbon footprint is the measure of the effect in the amount of carbon dioxide we as individuals put into the air through the burning of fossil fuels. How we use up our energy at home, in our business or via transportation can be controlled and it is the responsibility of us all to reduce this carbon footprint. Fuel-efficient cars have a smaller footprint, as do homes using energy efficient light bulbs. Businesses which operate in a city offering energy deregulation are allowed a choice in energy providers that will offer them a chance to lower their carbon footprint by opting for a more energy efficient fuel choice.

As your home or business looks for ways to reduce energy costs, you are ensuring that you will be decreasing your carbon footprint and playing a part in protecting our environment

VA Energy Choice Saves Customers Money on Electricity and Natural Gas

Dana Lucas - Friday, February 18, 2011

Virginia commercial and residential customers in the service utility areas of Columbia Natural Gas and Washington Gas and Light territories now have the choice to choose alternate energy suppliers. Energy-Tel provides Virginia electricity and natural gas customers with alternate energy providers to save them up to 20%. Multiple location commercial customers can aggregate their locations to maximize their savings. Call an Energy-Tel consultant today for your free energy analysis to lower and reduce your energy costs today. 800-708-3086. Thank you.

Generation Charges on Your Bill

Dana Lucas - Wednesday, February 16, 2011

As you begin the exciting prospect of choosing an energy supplier to help reduce energy costs, you’ll want to take a closer look at your energy bill. Unbundling your electric bill and finding your generation charges will show you where you will be able to reduce the charges.

In the past, when the electric bill came, the only part folks looked at was the amount due. They paid their bill and didn’t give it another thought. That was when the bill was bundled – meaning, the energy providers lumped all costs into one sum. But since energy bills are unbundled, folks can see exactly where their money is going and more importantly with electricity deregulation, they see how much they can save in terms of generation charges. These prices can be negotiated in a competitive environment.

Generation charges refer to the cost of power generated which is determined by the metered kilowatt hours multiplied by the unit price. With electricity deregulation, consumers can take control over this part of their bill by shopping around for competitive rates. They can also change their usage by employing many energy conservation tips

Electricity Choice A Boon to the Environment

Dana Lucas - Monday, February 14, 2011

As more and more states offer deregulated power our electricity choice improves. And with this comes not only competition among energy providers who can offer competitive rates, but also greener solutions in terms of alternative and renewable energy sources.

With more options being placed in the consumer’s hands, they are now able to opt for the company that offers energy choices that produce less pollution and reduce a home or business’ carbon footprint. With consumers having their “say”, energy suppliers are going to be forced to comply with their demands for cleaner energy. They are now going to be held to a standard that suggests if they want to stay competitive or even in business, they will have to offer power that is safe for the environment, clean and efficient without any negative side effects.

As competition grows in this industry it only stands to reason that so will solutions to alternative energy that is more efficient and cost-effective than the choices, or lack thereof, that we have today. It’s a win for the consumers, but more importantly, it’s a definite win for the earth!

The "Energy" Choice is Ours

Dana Lucas - Thursday, February 10, 2011

As consumers, we like to be given a choice. We like to shop around for the best price, feel good that we made the best decision and are ultimately happy with our purchase. What’s even better is when we read, “we’ll match any competitor’s price”. Now we don’t even have to go out of our way to get the best price. That is great customer service. That is a company willing to go to bat, for me!

But when it comes to a free market where our electricity choice is concerned, many businesses think their hands are tied. Believing that they are at the mercy of their energy suppliers, businesses are under the misconception that if the electricity rates go up, well, they have to pay the higher rates. Everyone needs heat. Companies know this and some take advantage. Not so anymore.

As the energy market becomes deregulated, more and more electricity companies will be vying for your business allowing your company to get competitive rates. Being able to have an electricity choice in a company that will offer incentives, puts you back in the driver’s seat.

If your business wants to switch to natural gas, it is now very possible to get competitive rates. Natural gas is plentiful in the United States and when it is burned it gives off few emissions, unlike fossil fuels. Also, unlike fossil fuels, natural gas burns clean, which means it is not expelling harmful carcinogens and toxic by products into the air, harming the environment. Being able to get a competitive price for natural gas, allows businesses the choice to go green with a cleaner, healthier method in receiving electricity.

Natural Gas Choice for Commercial Properties

Dana Lucas - Monday, February 07, 2011

Commercial use of natural gas includes hotels, restaurants, schools, churches and government offices. Natural gas has long been considered the fuel of choice for water heating and interior heating. But more and more business that require cooling and cooking fuel are opting for the natural gas choice.

Natural gas is one of the safest, and cleanest of all the energy sources and with technological advances that allow natural gas to be used for cooling and cooking, it is one of the most useful.

Another technological innovation brought about is combined heating and power (CHP) and combined cooling, heating and power (CCHP) systems, which are used in commercial settings to increase energy efficiency. These are integrated systems that are able to use energy that is normally lost as heat. For example, heat that is released from natural gas powered electricity generators can be harnessed to run space or water heaters, or commercial boilers. Using this normally wasted energy can dramatically improve energy efficiency.

http://www.naturalgas.org/overview/uses_commercial.asp

Being afforded this choice has many businesses opting for the natural gas choice and are not only saving money but, since natural gas is a cleaner burning fuel, are helping to save the environment.

Looking for an Alternate Energy Supplier?

Dana Lucas - Thursday, February 03, 2011

Looking to switch energy suppliers may seem like a daunting task, but it is really quite simple and one of the easiest ways that you can save on your energy bills.

The Internet has made searching for an alternate energy supplier very easy. Before you begin searching, you should create a chart listing all the suppliers in your area. Be certain to put as much information as you can about each company.

Visit all their websites and record what their current rates are and if they offer deals or tariffs. Some energy suppliers will offer a discount if you prepay for the year or quarter, or if you pay with cash. Ask the supplier to tell you about all these options up front so you can make the most informed decision. Remember to have the information on your current provider on the list so as to compare prices and deals. If you don’t find the information on their website, they should be very willing to mail you their fact sheet.

You will need to know how much energy you currently use. Looking back at your energy bills from the previous year will provide this information. Make sure you look at the actual meter readings and not a projection.

Remember to ask about penalties and hidden charges. These could be steep and may be the deciding factor on whether you choose a company.

And also do your research where reviews are concerned. Contacting the BBB (Better Business Bureau) is a great start to make sure any business you are considering has complied with all regulations and does not have any complaints from customers. It’s important that the company you switch to be the company in which you feel most comfortable.



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