Ceding control...

I came across an interesting blog post by a venture capitalist who was exploring the risks to entrepreneurs of ceding control to intermediaries, like bankers, agents, recruiters, etc.  Here's a link to the post by Mark Suster ("Don’t Cede Control: Why You Need to Cut out Middle Men in Negotiations"). 

It made me think about the use of intermediaries in the electricity and natural gas procurement process.  There are a lot of talented professionals providing advice and counsel to energy clients.  There are some less talented shops.  In either case, it still pays to be vigilant about managing your electricity and gas purchases and not to cede control to the broker, agent or consultant.  I would argue that this is particularly true when it comes to brokers and agents who get paid by the supplier.  They only get paid when you do a deal.  They want you to continue to be their client, but they also need to get paid and the only way they do is by you doing a deal.  It's that simple.   

As Mark Suster says in his post

You have an interest in pursuing the absolute best outcome you can get. Often others have an interest in pursuing the best possible outcome they can get, without sinking in extra time, without risking ruffling feathers and without breaking conventions & norms.

It is food for thought, and applies to many aspects of business. 

Making things that people want

I was thrilled this week to see Greentech Media publish a story about NRG's CEO and his focus on consumer experiences and making great products (http://www.greentechmedia.com/articles/read/clean-tech-needs-to-shift-focus-to-the-consumer/).  Energy and environment folks have talked about educating consumers for 30+ years.  People don't want to be educated, lectured, or admonished.  They want to save money, save time, feel good about their decisions and have great consumer experiences.  Who can say that about buying electricity?  Who can say that about any sort of energy experience?  It is time to get on with the business of building desirable products in the energy industry.  Our hypothesis is that process begins by giving people, consumers, the power to make good decisions and to see costs and value clearly.

Just out of curiosity, what is the best product you've purchased lately?  What product do you love?  I am a big fan of household soda makers.  I am almost chagrined to talk about a product experience.  But then as I sit here I realize that we are trying to build a great product.  So we should talk about products that we like and that make us feel good.  I have been a product evangelist for the household soda maker and have gotten 3 or 4 families to make the purchase simply by showing them how we use it and/or by talking about it.  I don't know if there is another product that I have felt this strongly about-- perhaps ever.  Why do I love it?  It is easy to use, reduces the waste stream, and seems to save us money.  A powerful combination.

I hope those of us in the energy and environment business can help to create products as powerful as this one.

How to buy electricity...

What does it take to do a good electricity deal?

There are a few, very manageable steps to take in order to do a good electricity deal.  I will list them here:

1)  Make sure you have all of your utility account numbers. 

2)  Understand your current electricity contract--

• when does your current agreement end, what month?
• what are you paying for electricity right now? 

3) Take a look at the forward curve for electricity.  Does it seem like a good time to buy electricity?  Where is the forward curve for electricity?  Is it high or low relative to recent months?  How about relative to your last contract?  You may not know... but you should be able to see it on TheMWh.com.  

4) Understand what your business' goals are.  Is it critical for your business to remain within a clearly defined budget or can you have some variation in your monthly or annual budget?  If it is the former, then you need a fixed price.  The latter?  You can buy an index or block product.  Take a look at the potential variations in costs between index, fixed, and block on the strategy section on TheMWh.com.  

5) View the pricing forecasts on TheMWh.com's website, on the contracts section.  Compare the monthly cost forecasts.  Take a look at the term sheet in the strategy section-- so you know exactly what to ask a supplier.  

6) You are ready to buy.  Feel free to contact Deirdre Lord at TheMWh.com if you want additional help.  dlord@themwh.com.  

Why use TheMWh.com?

Because you don't trust anyone in the energy industry--not even yourself-- and you need an unbiased source of information. Try this

Because you have never been able to access your usage or cost.  So you've always wondered, if you can't see, feel or touch electricity, then how can you possibly control or understand your costs?  Now you can see your usage, past and future, right here.

Because you've been buying electricity for 15 years, and you still don't get it.  Now you can understand electricity at your own pace, with real information.

Because you've always been "flying blind" and have never understood what your electricity budget is or should be.  You don't need to "fly blind" anymore.

Because you want to be re-assured that you've made a good electricity deal.  The only way to know you've made a good deal is to test the prices you're getting against the market price.  You can do that here.

Because you always thought sustainability and green power were too expensive... and beyond the reach of your business.  That's not necessarily the case.  You can see what green power would cost you here.

Energy markets have not served customers well--- until now.