Your WegoPower Questions, Answered
Last week, we presented a first look at our newest product, WegoPower, in a webinar. To recap, WegoWise’s Vice President of Business Development, Dan Teague and Energy Procurement Expert, Katharine Pelzer discussed:
- What energy procurement is. About half of all U.S. states have deregulated energy markets, meaning you can choose who supplies your energy, which helps building owners find and secure competitive rates.
- What to consider when selecting an energy broker. Whether you’re trying energy procurement for the first time or already in a contract, Dan and Katharine went over several qualities you should look for in a broker, including transparency, choice, automated data, excellent customer service, and renewable energy options.
- How procurement helps you control your portfolio’s energy budget. Even if the market is volatile, procuring energy through a third party allows you to lock in a competitive supply rate, giving you more certainty over your budget.
After the webinar, the question lines were buzzing. Here’s what our audience wanted to know:
How does WegoPower work with suppliers?
WegoPower works with 30+ top suppliers and we have no preferred relationships. The only thing that matters to us is that the terms and the rates of your contract are beneficial to you. Shopping around for your contract and making an offer carries no additional fees or obligations.
How long are the energy contracts?
Contract timelines can vary depending on what you’re looking for and what suppliers are offering. Whether you’re interested in a 6-month or 3-year contract, we can help! When it comes time to renew, we can start shopping for a new rate 6-18 months ahead of your contract end date.
If you’re not sure what to look for in a contract length, we’ll guide you. Typically, we don’t recommend an annual procurement schedule, as it doesn’t allow you to take advantage of the best options on the market. For example if you renew your contract every December, you’re continuously purchasing at a time of year when energy prices are generally higher. Unique timeframes, like 17- or 41-month contracts are also available, sometimes offering more competitive rates.
Does WegoPower allow you to compare different contract terms?
Absolutely! If there’s something in particular you’re looking for in a contract term, we can see if that’s available. We make sure to offer up many options around contract terms and will show you how each term can affect rate changes.
Do you offer renewable energy options?
It’s WegoWise’s mission to drastically reduce energy and water usage wherever people live and work, and we proudly offer 100% wind and solar energy options for energy procurement. We’ll also investigate other types of renewable energy you might be interested in.
Is there an extra cost associated with renewable energy options?
While renewable energy can be slightly more expensive, the cost has come down significantly in the past few years, and we can help you analyze those costs across your portfolio.
If I already use renewable energy, would it affect my procurement process?
If you have solar panels or wind turbines already installed, it would not affect your energy procurement process. Suppliers decide what to bid based on how much energy you use, and if you’re using less energy from the grid, a supplier would be able to see that and adjust your rate accordingly.
Are there variable prices for overages or under-usage?
Yes. Variable pricing for over- or under-usage of energy is what’s called a “swing option contract” in the industry. An energy contract can vary between 0-100% swing, and percentage of swing can dictate the rate. Our standard offer is a 100% swing option contract, meaning if you use more or less energy than expected by the supplier, it will not affect your rate.
With a 0% swing option contract, the supplier has to sell your energy back into the market if you use less than expected. If you use more energy than you did the previous year, you have to buy additional energy.
We normally don’t recommend a contract with less than 100% swing, but if you are striving to reduce energy consumption to meet efficiency goals, we would be more comfortable reducing your contract’s swing rate.
On a fixed price lock in, will you break out the base and commodity prices?
Yes. For the purpose of simplicity, we compare the supply price to what you would pay on the utility rate, but can always break down the base and commodity prices.
Have questions of your own? Email email@example.com to learn how tech-driven energy procurement can help your portfolio.
More good news: just because you missed the webinar, doesn’t mean you have to miss out on learning about WegoPower!