Switch energy customer presentation
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Switch Energy is an energy consulting firm that assists non-residential customers in navigating deregulated energy markets and securing competitive energy rates. They analyze each client's energy usage and bills to identify savings opportunities against fluctuating market rates. Switch Energy representatives guide clients through a simple process of rate analysis, provider matching, and contract approval to lock in guaranteed fixed rates estimated to save 15-50% off current costs over 3 years.
Switch energy customer presentation
- 2. IntroductionENERGY CONSULTING Switch Energy is an energy consulting firm that assists non-residential electric consumers in making informed energy purchasing decisions.Switch Energy has developed numerous channel partnerships with major Retail Energy Providers across the country offering all-inclusive energy contracts to serve a wide variety of business and government entities.Simplifying the energy markets.
- 3. Energy Consultant WHAT WE DOSwitch Energy recognizes that every customer has different needs; therefore a customized Energy Cost Savings analysis is created on behalf of each client. WHY USThe customers needs come first. We have years of energy experience and a proven track record for saving our clients money.Before deregulation, businesses had no choice and therefore no need to pay attention to the energy market. You simply paid the regulated rate just like everyone else. Over the past decade, deregulation has ushered in a new era of competition and consumer choice.You have the power to choose.
- 4. Electricity DeregulationThe objective of deregulation is to offer energy customers greater choice, both among suppliers and services. Ideally that will result in increased market efficiency and dollar savings to the consumer.U.S. Department of EnergyThe reality is that savings do not come by default, You Must Choose! In a deregulated market the business must decide who to buy from, when to buy, what type of contract, how long to contract or whether they should consider a market based rate. With every option comes a certain level of risk, the decisions a business makes or fails to make is what drive the cost.
- 5. Energy Portion Open To CompetitionDeregulated Electricity GeneratorRegulated Delivery (Utility Co)Deregulation means the generation portion of electricity service is open to competition. During the deregulation process the local utility is forced to sell their generation capacity, what remains is a regulated delivery (utility) company that continues to deliver electricity and provides billing and customer service to the consumer.
- 7. Electric Prices Will Continue To Rise
- 8. Electricity Prices – Highly VolatileThis chart shows the movement of electric prices on the wholesale marketElectricity market is 10 times more volatile than the stock marketPrice is now low which makes it a great time to lock in prices long term
- 9. Factors That Affect The Price of ElectricityMany factors affect the price of electricity and can introduce price risk to the customerFuel price New Plant ConstructionDemand – Forecasted to grow by 30% to 40%Load & seasonal variation Local climateOn the fuels used to generate electricityEnvironmental IssuesNatural disasters – Hurricanes that disrupt fuel delivery Political instabilityCongestion Charges – not enough delivery infrastructure Transmission and RTO service chargesRegulationSpeculationInflationUnpredicted plant outages of base load plantsSupply and demand issues cause monthly and even daily price fluctuations Demand is usually highest:In the afternoon and early evening, known as “on peak” hoursDuring the summer and winter months when electricity is used for heating and cooling
- 10. Electricity Generation – Fuel TypesMost people think that the price of oil affects the price of electricity. Not true, this chart shows that 70.2% of electricity is generated from Coal and Natural Gas. The U.S competes for these fuels globally.
- 11. Energy Outlook 2008 - Fuel Price ForecastsWorld Oil PriceNatural Gas Wellhead Pricenominal dollars per barrelnominal dollars per thousand cubic feetCoal Minemouth PriceAverage Electricity Pricenominal dollars per tonnominal cents per kWhAnnual Energy Outlook 2008
- 12. Nuclear's Comeback: Still No Energy Panacea By Michael Grunwald
- 14. Electricity Consumption - DemandEmerging countries are lighting up, placing enormous price pressure on the fuels used to generate electricityNew York Generation – New ConstructionNuclearCoalPetroleumNatural GasNatural GasNuclearRenewableRenewableCoalPetroleumNew Generating Plant Construction Has Increased 50% In Just 8 Years
- 15. Deregulated Energy – Complex MarketThe multitude of options combined with dramatic price fluctuations makes the deregulated market infinitely more complex.Switch Energy helps businesses buy energy at 15% to 50% off peak rates in deregulated markets with a simple and objective process based on proven strategies that eliminates uncertainty and volatility risk for the consumer.Switch Energy connects businesses with the right supplierand the right contractat the lowest possible rate.These and many other energy providers
- 16. Pass-Thru ChargesMany contracts do not include Pass-Thru charges which can add 5 cents per kWh or more to your contracted energy price. Your total price including pass-thru is the price to compare.Pass Thru Charges Can Include:
- 18. Capacity Charges
- 22. Transmission & Distribution Losses
- 23. Energy Procurement Cost Recovery
- 24. RMR (Reliability Must Run) Charges
- 25. Bandwidth
- 26. Some contracts will charge you if your usage varies Plus or Minus the contracted amount of energyVariable and Hybrid Rates – Deceiving?Variable rate and hybrid contracts, on the surface, appear to save you money but actually cost you more than a fixed all inclusive rate contract. You should choose your supplier based on total term cost not just the rate you get today. A business that makes a decision by comparing rates only are often surprised at the wide fluctuations they see on their bills.
- 27. Energy Provider Contract OptionsThe Plan You Should Choose Depends On The Amount of Risk That You Are Willing To TakeMonth To MonthVariable RateWith Pass ThruRiskVery HighPrice varies Based on monthlyaverage marketHourly PricedVariable RateWith Pass ThruRiskExtremely HighPrice varies hourly based on market and can easily double or tripleHybridFixed EnergyWith Pass ThruRiskHighFixed energy but pass-thru charges can add 5 centsto the energy priceFixed All InNo Pass ThruRiskNoneEliminates all risk, this rate is constant and includes all pass-thru charges, no bandwidthMost businesses lack the time, expertise, and tools to track the energy market and make good purchasing decisions. Businesses today rely on experts when it comes to financial, insurance real estate and other complex transactions.
- 28. Cost Saving Scenarios:Retail Seafood House Paying $3,000 Monthly Annual Usage: 241,900 kWhOld Rate: $0.14555New All Inclusive Rate: $0.11993 Year Savings: $52,657Automotive Repair and Body Shop Paying $7,500 MonthlyAnnual Usage: 597,200 kWhOld Rate: $0.145000New All Inclusive Rate: $0.11753 Year Savings: $128,667Retail Furniture Store – 7 Locations Paying $9837 MonthlyAnnual Usage: 945,200 kWhOld Rate: $0.12490New All Inclusive Rate: $0.1253 Year Savings: $81,257, First Year Savings $5100Large Manufacturing Facility Paying $85,000 MonthlyAnnual Usage: 7,846,153 kWhOld Rate: $0.130100New All Inclusive Rate $0.1174003 Year Savings: $1,215,484Medical Center Paying $25,000 MonthlyAnnual Usage: 1,849,650 kWhOld Rate: $0.1622New All Inclusive Rate $0.09113 Year Savings: $527,759
- 29. Savings Analysis - Actual Customer
- 30. Worry Free Switching:No switching fees
- 31. No interruption of service
- 32. Same poles, wires, and power quality from your local utility
- 33. First bill will come from the new supplier in approx. 45 days
- 34. Will notice new provider on the bill and contracted rates
- 35. Pay the bill as normalSimple Steps To Savings:Fax or email Your Energy Bill For AnalysisWe will work to get your savings approved.We will match you to the lowest cost provider that has an “all in” fixed price.Process takes 5 to 10 days on average.Set the Appointment To Review Your Savings and to Lock In Your RateWe provide you a blank contract prior to the meeting so you have time to review.Rates are priced daily so you will need to lock in the rate by 4PM eastern.Contact us today to get started!1-888-893-9113www.switchenergy.us
Editor's Notes
- #8: The most important aspect of electric power markets this summer is that wholesale prices are likelyto be quite a bit higher than last year. Forward prices from the InterContinental Exchange are 50 to90 % higher than last summer’s prices. They are higher almost everywhere, in both RTO and non-RTO regions. The degree of increase depends on how often natural gas is the marginal fuel beingburned, not on whether a region is part of an RTO. Thus, the largest increases appear in theNortheast where gas is almost always on the margin. The lowest appear in the Midwest, where coalis more often on the margin.These prices are important, but I need to give you two cautions in using them. First, forward pricesare not predictions of the future. They are the price that willing buyers are paying – right now – towilling sellers for deliveries this summer. That may or may not be where the prices end up. In anycase, they are already affecting eventual costs – those who hedge their positions with forwardtransactions are locking in this price already as part of their summer portfolio.Second, there is no direct relationship between wholesale and retail electric prices. The effect ofhigher wholesale prices in short-term markets on retail prices varies based on the reliance on shorttermpurchases.