It is essential to carefully review and understand utility tariffs if your organization is looking to manage utility costs proactively. The utility rates and tariffs change as utility providers check their costs. Such changes could impact the tariff under which your business purchases electricity or natural gas. As budgets are finalized and we enter the new year, keeping an eye on potential changes to your energy/utility tariff is important. Here are 7 things to know about your utility tariff.
- What is a utility tariff? A utility tariff is a document that outlines the rates, terms, and conditions for energy and natural gas services provided by a regulated utility company. These tariffs are regulated by state Public Service Commissions and are designed to protect consumers from unexpected price increases and other unfair pricing practices.
- Who chooses my business rate class? The rate class for a business is determined by the type of energy usage and operating hours. Some examples of rate classes include General Service, Time of Use (TOU), and Real-Time Pricing (RTP). Businesses may fall under more than one rate class, depending on their energy usage and operating hours.
- Utility representatives are knowledgeable about the options available for your business but do not want to make assumptions about your business or how you will use energy in the future. Therefore, it is essential for you to thoroughly review the options and determine the best fit for your business. Consider energy usage patterns, operating hours, and budget to determine the most cost-effective rate class.
- How do I read and understand my utility tariff? Utility tariffs can be complex documents, but it is crucial to understand the terms and conditions outlined in them to ensure that you are paying a fair price for your energy and natural gas services. Some key elements to look for include the rate structure, terms of service, and billing and payment procedures.
- Can I negotiate my utility tariff? In regulated states, the rates and terms outlined in the utility tariff are set by the Public Service Commission and usually cannot be negotiated. However, there may be options for reducing energy costs through energy conservation measures or participating in other utility programs.
- How often are utility tariffs reviewed and updated? Utility tariffs are typically reviewed and updated periodically. Some portions of the bill will be updated monthly, whereas others may change every one to three years. It is important to stay informed about any changes to your tariff and how they may affect your energy costs.
- How can I get help understanding my utility tariff? If you have questions or need assistance understanding your utility tariff, contact Tenurgy. We specialize in analyzing utility tariffs, identifying overbilling, and finding cost savings opportunities.
Many companies in various industries realize savings on their utilities, thanks to Tenurgy. Join the growing list of companies — contact Tenurgy to start your utility bill auditing today. There are no upfront costs, little staff time is needed, and the audit is completed off-site. Start your risk-free, 100% remote Energy Bill Audit today; let the experts help you keep an eye on potential changes to your energy tariff that could cost your business.