How Can Energy Deregulation Affect a Company’s Bottom Line?

July 16th, 2014

As a small business owner in Pennsylvania, you are familiar with energy deregulation—it’s been practiced in our state since the late 1990s. But how does energy deregulation affect a small business’s bottom line?

First, let’s have a quick review about energy deregulation for businesses and organizations.

About Energy Deregulation

In the big picture, energy deregulation means access to more options and lower rates on electric services—and the opportunity to save money. Under electricity regulation, Pennsylvanian business owners had only one option when it came to choosing an electricity provider—including utilities such as Met-Ed, Penelec, PPL, West Penn Power, and some other providers. Electricity deregulation opens up the electricity market and enables multiple service providers—such as UGI EnergyLink—to compete.

Before & After Energy Deregulation

Before energy deregulation, you received electricity from your local electric company or utility. Now, you work with electric suppliers in the market to purchase your electricity, though it’s still delivered by your local utility. Much the way you sign up for commercial phone lines, your service is still the same but you can pick a company based on rates, customer service, reputation, and more.

Energy Deregulation Is a Win-Win for Small Business

For the consumer, the switch to energy deregulation is win-win, as you are able to shop for better rates within the market and receive uninterrupted, reliable service. With the opportunity to take advantage of lower market rates, small business owners can shop around for a rate and pricing plan that works best for them.

Cutting down on monthly utility costs each month could lead to saving hundreds or thousands each year. That could mean hiring more employees or lowering the prices for your goods and services—both of which supports the local community and allows small businesses in PA to thrive.

Energy Saving Example

According to the U.S. Energy Information Administration (EIA), the average retail price of electricity for commercial customers in Pennsylvania was 10.09 cents per kWh in March 2014—which was 59 cents lower than the U.S. average!

A typical business may consume about 5,000 kWh per month, which would bring their monthly energy bill to $504.50. For these businesses, saving just a few pennies on the amount paid per kilowatt hour can have a real impact on the company’s bottom line.

If these businesses were able to save just two cents more per kWh, for example, their monthly energy bill would have fallen from approximately $500 to $400—a reduction of about $100 a month or $1,200 annually. This should give you a general idea of the savings opportunity so easily available to you as a small business owner. And if you work in an office space, which typically consumes more electricity than the average business, you have an even greater incentive to transition to a commercial electricity supplier!

Make UGI EnergyLink Your Small Business Electric Company

Looking to switch electricity suppliers—and looking for the opportunity to save money to grow your bottom line? Make the switch! Transitioning to UGI EnergyLink’s commercial electric service is easy. Our service professionals will make all the necessary arrangements for you—just fill out our simple enrollment form to get started. With your basic information (including current utility and account number) and a few minutes, you can have us and our excellent electricity pricing options on your side.

Working with UGI EnergyLink means:

  • You will experience no service interruptions in your electricity delivery
  • You’ll get a customized approach to energy buying that best meets your company’s needs
  • You can better predict the impact of energy costs on your budget and bottom line
  • You’re working with a company with more than 127 years of experience
Enroll for Natural Gas & Electricity with UGI EnergyLink