In regulated markets energy suppliers apply one of a multitude of available rates and tariffs for the purchase and transportation of energy. In deregulated markets, although the purchase of energy is accomplished on a negotiated basis, typically the transportation or delivery of energy continues to be charged pursuant to one or more regulated rates or tariffs approved by governing authorities. Rate and tariff options in a given market are constantly changing – i.e., new rates are added and existing ones are modified or eliminated.

The application of each specific rate or tariff to a particular consumer’s usage profile results in a different cost. Most consumers are surprised to learn that energy suppliers are not required to apply the most cost effective alternative to their account. The responsibility to analyze, identify and request the most cost effective rate falls on the consumer.

Rate analysis and optimization requires access to an energy supplier’s rates, a detailed understanding of rate design as well as the consumer’s overall usage profile, and systems to compare multiple cases or scenarios. It has been our experience that few businesses wish to retain the internal expertise and resources to regularly undertake this task.

It is for this reason that NUS Consulting offers a service to perform rate analysis and optimization. The objective of the service is to identify and implement the most cost effective rate alternative available and, as a consequence, reduce a business’s annual energy expenditures.