FAQ

Energy suppliers are established to mitigate energy price fluctuations and to offer products tailored to consumer needs. There are entities dedicated to power generation (like nuclear, solar, and gas). Then we have "Suppliers." These Suppliers purchase energy from generation companies and strategically offer it either directly to consumers or to utilities. These Suppliers can also be known as wholesalers, Retail Energy Providers (REPs), or Alternative Retail Energy Suppliers (ARES).

The cost of energy is influenced by multiple factors. Your location, the grid segment you're connected to, and your local utility can affect the pricing variables. The "energy" component, often the most significant and volatile in your overall energy cost, mirrors market projections of both energy supply (relating to the fuel source or the power plants) and demand. As market perceptions of these factors change, combined with value changes of underlying assets, energy prices adjust accordingly.

Several theories suggest why not everyone engages in competitive energy markets. Some may not be aware of its existence or its advantages. Misinformation about these markets might deter others. There are also instances where individuals might have been sold unsuitable energy contracts with concealed or variable charges. At Harper Energy, we prioritize trust and transparency and shed light on how these energy markets can align with a consumer’s energy objectives.

Your energy cost partially depends on your consumption patterns. The majority of the grid's energy comes from power plants with steady outputs. Since energy has to be used as soon as it's generated, suppliers favor clients with consistent consumption patterns. Thus, consuming more energy in a short span can be pricier than spreading that consumption over a longer duration. When you share your energy usage data with Harper Energy, we relay this information to energy suppliers who evaluate it to assess your worth as a consumer. Moreover, Harper Energy aims to broaden its array of complimentary services, which would utilize your data for tasks such as budgeting, tariff evaluations, and bill analyses.

Within 100% Fixed contracts, except for a few particular instances, the pricing remains static throughout the contract's duration. Due to the risk undertaken by the supplier to lock in rates for the client, these contracts might carry a higher cost compared to those where certain elements are "Passed Through".

When dealing with 100% Passed Through contracts, the supplier doesn't bear the financial brunt of fluctuating pricing components. Consequently, the cost to the consumer will constantly shift during the contract's lifetime. While generally more cost-effective, these contracts present a higher risk to the customer compared to those with some fixed pricing components.

With Semi-Fixed contracts, the supplier assumes the risk for a subset of the pricing components, leaving the rest variable. This results in an energy price for the client that might oscillate over the contract term. Offering a balance between risk and reward, Semi-Fixed contracts allow customers to align their risk tolerance by determining which elements are static or variable.

Despite all pricing components being set in a 100% fixed contract, certain scenarios might prompt a rate adjustment. These can include legal changes impacting the supplier's operational costs, significant deviations in the client's energy consumption beyond what's outlined in the contract's swing provision, the supplier ceasing operations (leading to a reversion to standard rates), or unforeseen, unavoidable events. Collaborating with Harper Energy ensures you receive insights about the potential for price adjustments within specific contracts.

While a low-cost contract might seem enticing, it isn't always the wisest choice when considering risk management and long-term savings. Harper Energy delves deeper than just the upfront price, examining the nuances that determine the overall cost and risk tied to a contract. Cheaper contracts might come with usage limits, exclude specific fixed-rate components, or present heightened risks due to the supplier's characteristics—all of which might elevate the total expenditure in the long run.

Beyond making informed energy procurement choices, there are other paths to trimming your energy bills. These include conserving energy, optimizing capacity management, and tapping into utility incentives. Harper Energy has expertise in these domains and can craft a specialized plan that aligns with your business's distinct opportunities and constraints.

Many organizations are laying down immediate and future environmental benchmarks. Sourcing power from renewable energy avenues is a significant stride towards fulfilling these objectives. Acquiring renewable energy certificates (RECs) is a testament to your enterprise's eco-friendly stance and bolsters your environmental goals. Incorporating RECs into your energy sourcing plan not only fosters the demand for pristine, renewable sources like wind or solar but also allows you to equate a specific percentage of your yearly electricity consumption to these sources. This, in turn, enables you to assert reductions in the greenhouse gas emissions linked to your electricity consumption, often referred to as “Scope 2” emissions.

Harper Energy typically showcases contract initiation dates as a month and year without specifying a day. This practice is adopted since the precise commencement of your fresh electricity contract hinges on your meter reading details and the prevailing billing cycle.

Opting for a competitive energy supplier won't affect the reliability or quality of the electricity delivered to your premises.

Energy suppliers employ various strategies to ensure a continuous supply of energy. Often, they'll maintain flexible "open" positions and resort to the spot market to meet any additional requirements. If a supplier falls short in delivering adequate energy to the grid, the designated Independent Service Operator (ISO) will intervene, coordinating additional energy generation to prevent power disruptions. To clarify, suppliers deliver energy to a specific utility zone, and from there, the utility channels it to your location. Engaging with a competitive supplier doesn't alter the probability of a power outage.

Absolutely! Your existing utility company, which oversees the infrastructure that delivers power to your establishment, will remain unchanged, irrespective of your choice to partner with a competitive energy supplier for managing energy costs and risks.

This pertains to the costs related to adding or removing accounts from a contract. Incorporating or eliminating accounts typically incurs extra charges.

This term encompasses tasks linked to grid operations, such as activating energy plants or regulating transmission line voltage. Depending on the Independent System Operator (ISO), Ancillaries might have several sub-components.

This refers to the ability of a customer to transfer the contract to another legal entity or account. Often relevant for commercial real estate clients, it allows those who might sell their property during the contract duration to avoid early termination fees.

At a contract's conclusion, clients can switch suppliers, sign a fresh contract, or provide a termination notice. The auto-renew clause outlines the procedure if none of these steps are taken. Auto-renewed contracts typically yield more profit for the supplier, which isn't necessarily detrimental for the client, provided they choose one of the mentioned options.

This is the cost variation between the central Hub price and the Load Zone (consumption area). Depending on various elements, Basis can be either positive or negative and is generally more stable than Hub prices.

Three billing methods are common: “Utility Consolidated” allows your original utility to bill you with new supplier charges replacing past generation fees. “Supplier Consolidated” means the supplier charges for both generation and utility fees in one bill. Lastly, “Dual Bill” results in separate invoices from both the supplier and utility.

Your capacity tag indicates the energy amount reserved for your company on the grid's most burdened day. In many markets, managing your peak can yield significant savings. Harper Energy helps you realize the potential value in this and offers strategies for efficient consumption during peak times.

This determines if the supplier can adjust charges or credits based on legal changes regarding tariffs, fees, or rate calculations. If the response to Change in Law is “No”, the supplier manages these alterations, ensuring consistent client rates.

This concerns the client's ability to settle bills via credit card. Since this method often involves added fees for suppliers, contracts might adjust other costs to offset this.

This is the energy amount's market price that you consume, typically measured in kWh on monthly statements.

If a customer doesn't select another agreement post the initial term, a Holdover Rate is applied. Some contracts may not have auto-renew clauses but will feature a Holdover Rate.

Hub Energy refers to the primary energy generation cost. The “Hub” is a collection of nodes in a specific area, wherein the ISO determines average pricing based on Locational Marginal Prices (LMPs). These prices can fluctuate considerably depending on system load and available generation.

As electricity travels from its source to your meter, some is inevitably lost. To compensate for this loss, a little extra energy is generated. If these losses aren't fixed, you'd see an additional billing line item or an adjusted total bill. Loss percentages vary by utility and rate class.

A supplier's credit rating is crucial when entering a contract. A higher rating suggests a reduced risk of the supplier folding. If they do, you could revert to “default” rates, which might be costlier. AAA represents the pinnacle, with C/D being the least desirable.