A guide to switching energy suppliers to get the best deal

Energy costs can be one of the largest overhead expenses for small and medium-sized businesses in the US. Whether you're managing a single location or multiple sites, keeping your power and gas costs under control is essential. However, many business owners don’t realize that they have the power to choose their energy supplier in a deregulated market.

If your business is located in one of the many deregulated states for energy in the US, switching energy suppliers and using one of the two main energy RFP (Request for Pricing) processes can be a smart way to reduce costs, improve service, and gain access to more flexible contract terms. But with so many suppliers and contract options available, navigating the process can be complex. That’s where expert guidance, like the services we provide at World Kinect, can make all the difference.

Why consider switching energy suppliers?

Many businesses stick with their current energy supplier simply because it seems easier than exploring alternatives. However, doing so may mean missing out on significant cost savings and better service options. Here’s why switching energy suppliers could be beneficial for your business:

1. Lower energy costs

   One of the primary reasons businesses switch suppliers is to secure better rates. If your current contract was signed during a period of high market prices, you could now be overpaying. Energy prices fluctuate due to various factors, including supply and demand, market conditions, and even geopolitical events.

   By exploring your options and engaging in an energy RFP process, you can compare multiple suppliers and find the best available rate for your business. Even small reductions in energy rates can mean significant annual savings, particularly for businesses with high energy consumption.

2. Better customer service and support

   Not all energy suppliers provide the same level of service. Some businesses experience slow response times, billing errors, or difficulty resolving issues with their current supplier. By switching to a provider with a stronger track record in customer service, you can ensure that your business receives the support it needs.

3. Access to renewable energy options

   Many businesses today are looking for ways to reduce their carbon footprint and meet sustainability goals. Switching energy suppliers gives you the opportunity to choose a provider that offers renewable energy options such as wind, solar, or hydroelectric power. Not only can this help with environmental responsibility, but it may also improve your company’s reputation with customers who increasingly prioritize sustainability.

4. More flexible contract terms

   Every business has different energy needs, and your contract should reflect that. Some suppliers offer more flexible terms than others, including fixed or variable rates, shorter contract durations, or the ability to adjust usage terms as your business grows. Switching suppliers can allow you to find a contract that better meets your operational needs.

Understanding the energy RFP process: What it is and why it matters

An energy RFP is the process of inviting multiple energy suppliers to submit competitive bids for your business. Rather than accepting the first offer you receive, you can compare different rates and contract terms to secure the best deal.

While some businesses handle energy supplier transitions independently, the process can be complex. Working with an energy broker, like World Kinect, can simplify the process, benefit from industry expertise, and maximize your savings.

Why an energy RFP process works

1. Increased competition = better rates

   Energy suppliers compete for your business, which drives down prices and increases your chances of securing a favorable deal.

2. Transparency and informed decision-making

   An energy RFP provides clear comparisons of different offers, allowing you to choose the supplier that best aligns with your needs and budget.

3. Time savings

   Instead of negotiating with multiple suppliers individually, a structured RFP process consolidates offers in one place, making the process more efficient.

4. Access to expert market insights

   Energy brokers, like World Kinect, have direct access to wholesale energy market experts. These professionals track market trends, price fluctuations, and supplier performance, ensuring you enter or renew a contract at the optimal time.

Steps in the energy RFP process

To maximize your savings and efficiency, it’s important to start the RFP process well before your current contract expires – ideally, 3 to 6 months in advance. This gives you time to assess your options and negotiate the best terms.

Step 1: Market analysis and supplier research

Understanding energy market trends is essential for making informed decisions. World Kinect’s team of experts continuously monitors pricing patterns and supplier reliability, helping businesses make data-driven choices.

Step 2: RFP submission

An RFP is sent to multiple suppliers outlining your business’s energy needs, contract requirements, and preferred pricing structure. This stage ensures that you receive tailored proposals that match your specific needs.

Step 3: Supplier bidding process

Suppliers submit their bids, offering competitive rates and contract terms. This competitive process increases your chances of securing the best possible deal.

Step 4: Pricing proposal evaluation

Each pricing proposal is carefully analyzed based on cost, contract flexibility, customer service reputation, and sustainability options. World Kinect’s industry expertise ensures that you avoid hidden fees or unfavorable contract clauses.

Step 5: Negotiation and contract finalization

Negotiation is a critical step in securing the most cost-effective contract. Even small adjustments in pricing or contract terms can result in significant savings. Once negotiations are complete, your new energy contract is signed, ensuring a smooth transition.

Challenges of managing the RFP process

While some businesses attempt to handle the energy RFP process on their own, this can be time-consuming and complex, requiring in-depth knowledge of market trends, pricing structures, and contract terms. Without expert guidance, businesses may: 

• Overlook cost-saving opportunities
• Miss out on better contract terms
• Struggle to navigate complex pricing structures
• Lock into long-term, inflexible agreements 

That’s why many businesses work with energy brokers like World Kinect to simplify the process and ensure they get the best possible deal. 

Let World Kinect help you make smarter energy decisions – get in touch today!  

Save money & simplify energy procurement with World Kinect 

If your business operates in a deregulated energy market, finding the right supplier and securing the optimal solution can be time-consuming and complex. But switching energy suppliers and engaging in an RFP process doesn’t have to be complicated. With over 30 years of experience, we help businesses like yours cut costs, streamline the tendering process, and secure energy contracts that truly work for you. 

With the right guidance, your business can take advantage of market opportunities and achieve long-term cost savings.  

Why choose World Kinect? 

Access to competitive energy rates 
We leverage our vast network of 40+ trusted suppliers to source the most competitive electricity, natural gas, and sustainable energy solutions. 

Expert support and market insights 
Energy prices fluctuate, but our team monitors the market in real time to help you lock in the best deals at the right moment. 

A hassle-free tendering process 
From market research, RFPs, to contract negotiation, we make sure the process is clear and manageable. Our consultants simplify every step, ensuring full understanding before commitments are made – saving you time and effort while ensuring maximum savings. 

Dedicated support, every step of the way 
Your business isn’t just another account to us. Our expert team provide ongoing support, manage contract renewals, and help resolve any supplier issues, so you can focus on running your business. 

A trusted energy expert since 1995 

As a Fortune 100 energy company, we’ve built strong partnerships with both suppliers and customers, serving businesses across the 16 deregulated states of the PJM Power Region. As the exclusive energy consultant for the Pennsylvania Chamber Choice Energy Program and the trusted energy partner for 70+ Chambers of Commerce, we have a proven track record of delivering results.