Some rate plans in the Philadelphia area are geared to low-income residential energy consumers. Other rate plans are much more advanced and are for industrial and commercial businesses.
An electricity company that sells to low-income residential electricity service customers may not sell to large industrial or commercial customers. The rate plans available between these two types of customers will vary dramatically in price and flexibility.
With large commercial and industrial customers in Philadelphia you may see what appear to be two identical electricity rate plans but one will have a demand swing percentage and the other will not.
Call to learn about our reverse auction process at 1-800-971-4020
What this simply means is that one electricity company will allow for a large industrial facility to go way over their estimated electricity usage for the year without incurring a penalty while the other company has no penalties associated with going over the estimate.
You see a Philadelphia electricity supplier will quote you a price based on historical or estimated electric usage. If your company plans to build out over the next year but you fail to tell the electricity company this they may offer you a great rate but will penalize you for excess usage over what they estimated you would be using for the year.
Most electricity companies will work with you if you explain that you do not want there to be any penalties associated with using more energy than estimated. You will see that the electricity company will charge you a higher rate if they are not allowed to insure themselves against a possible swing in estimated usage.
Both the customer and the electricity company face a balancing act when choosing the best rate plan to fit their business need. The electricity company must make a profit with very thin margin and the commercial business must get a good rate while minimizing unforeseen penalties that will effect a yearly budget.
An energy consulting company that specializes in sending your electric usage through a reverse auction can help. We have electricity companies selling retail electric service in the Philadelphia area compete to win your business.
We take these rates and facilitate a downward pressure on the prices as these energy suppliers attempt to quote and win your business.
Once all rates are in we work out special terms and service that benefit the way you use your electricity. Swing or no swing, heat rate, and other specifics are worked out so that the right rate plans are offered in a detailed apples to apples proposal.
Your Philadelphia business is presented a proposal with a side by side apples to apples comparison giving you all available options to choose from.
We walk you through the proposal and give you our advice on the best electricity company and rate plan to go with based on your need.
If you would like to learn more about our reverse auction process in Philadelphia please call us at 1-800-971-4020