Taking a strategic approach to New Jersey energy procurement is a great way for businesses, municipalities, and a variety of organizations to meet their energy needs with minimal effort on their part. Working with an experienced energy consultant can help those in the Garden State find the best suppliers, terms, and products available, without the hassle of trying to figure out the best contract for them while decoding various regulations and laws.
Without an energy procurement plan, organizations and municipalities can’t know if their energy management strategies are effective. They could be paying more than they need to, using their energy inefficiently, or not utilizing readily available clean, renewable options.
This article will look at energy procurement in New Jersey, explain how it works, go over some challenges involved, and examine the available renewable options.
What Is Energy Procurement?
Energy procurement involves researching and identifying the most cost-effective and practical energy contracts available in your local or state market. Businesses can sometimes benefit by working with local distribution corporations or third-party vendors.
How Does Energy Procurement Work?
Energy procurement works best with tailored plans for each business. An organization can partner with an energy consulting firm that has access to a large supplier network, a proprietary pricing platform, and industry experience — all of which it can use to help a business meet its energy and eco-friendly goals.
A consultant investigates supplier options and energy consumption trends and creates a plan to help their client avoid unexpected charges and receive accurate cost forecasts. They then analyze potential providers, searching for the most competitive options.
An energy consultant will then negotiate a comprehensive contract on behalf of its client. Post-contract, it may monitor energy usage and market conditions to offer further support.
Types of Energy Procurement in New Jersey
There’s more than one way to procure energy in the State of New Jersey. Here’s what to know:
Basic Generation Service (BGS) Auction
Every year, New Jersey Electric Distribution Companies procure billions of dollars of electric supply to serve their BGS customers through a statewide auction, typically held in February. The New Jersey Board of Public Utilities decides the results shortly after the auction.
Government Energy Aggregation
The Government Energy Aggregation Act of 2003 gives municipalities and counties the right to aggregate the energy usage of residential and non-residential ratepayers in order to conduct a bulk bid or auction. This aims to achieve the lowest possible price, maximizing the benefits of deregulation.
Third-Party Energy Suppliers
Because of energy deregulation, municipalities and organizations can engage a third-party supplier to take care of the supply portion of their needs.
Challenges in Energy Procurement
Securing the best energy contracts can be difficult, despite the multiple options available. It requires the navigation of complex regulations and dynamic markets, and every state has its own specific laws and dynamics. Given the ever-evolving energy landscape, especially with the shift to renewable energy sources, partnering with a third party can be beneficial in helping to find better options.
How EnerConnex Supports Energy Procurement in New Jersey
EnerConnex helps businesses and municipalities secure their energy and electricity. We can make the transition to renewable energy easier, maximize your energy efficiency, and deal with any public utility or provider. From renewable procurement to energy budgeting, we’ll help you make a better energy choice.
FAQs
Here are some frequently asked questions regarding energy procurement in New Jersey:
Who Is the Best Energy Supplier in New Jersey?
This depends on several factors, including usage, term, product, appetite for risk, and more. A licensed and experienced energy consultant — such as EnerConnex — can find the best available energy supply rate for a company or municipality utilizing a vast supplier network. This may sound overwhelming, but EnerConnex can help you navigate your energy procurement needs with confidence.
Does Your Price Include New Jersey State Sales Tax?
Some or all of the energy procured may be exempt from sales tax.
How Do I Choose the Most Effective Energy Procurement Plan?
EnerConnex will work with you to understand your business and its energy needs and can draw up a custom energy plan to help you maximize your efficiency.
Why is Corporate Sustainability Important?
Renewable projects, such as solar energy production and other green energy sources, offer long-term sustainability. Customers and investors are often concerned about environmental impacts and cleaner energy is often the cheapest electric utility option.
Get Started with EnerConnex
EnerConnex makes New Jersey energy procurement easier. Discover EnerConnex energy procurement services and find out how we can help your business meet its energy and environmentally conscious objectives.
