An Energy Management Story – What are you really paying for in a Broker?
A very large Plastics Company was visited by an even larger Energy Management Firm. The Plastics Company was very impressed with the multitude of services discussed especially in the area of power factor correction and load curtailment. Having access to these features seemed to justify paying a heavier fee for their procurement.
After the first year, the Plastics Company corrected their power factor issue by contracting with a third-party vendor referred by Energy Management Firm and also purchased a very large backup generator from another third-party vendor. These projects save the Plastics Company a lot of money and increased their opportunities in load curtailment, but both were provided through a third-party vendor and the cost were substantial.
Why did the Plastics Company pay an inflated fee? Did they even know their procurement fee with the Energy Management Firm?
They signed a six year contract and will pay the Energy Management Firm for the life of that contract… is there a better way?