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In order to find relief from high energy rates, improve sustainability and decrease the risk of power outages, Connecticut businesses can look to microgrids, which are a growing trend throughout the state.
With the U.S. economy growing slowly and the pains of the Great Recession still not too far in the rearview mirror, many businesses are keeping a close eye on budgets. In fact, a Deloitte study of executives at Fortune 1000 companies last spring found that 88% of companies expected to pursue cost reductions over the following two years, regardless of whether revenues rise or fall.
In a largely commoditized industry such as energy, it might seem like there’s little that utilities can do to win more business other than how they price their services. By definition, price is what commodities are based on, yet there are opportunities for energy utilities to break from the ranks and differentiate themselves by improving customer experience.
The truth is that reducing energy consumption does not guarantee a lower utility bill.
Forget hindsight being 20/20. With real-time analytics, improved foresight is also within reach.
Every user of electricity consumes power at irregular intervals. From residential buildings to large industrial facilities, power usage will fluctuate depending on numerous conditions. Is the building occupied? Are the lights on? Is the building being heated or cooled? For facilities billed on demand, (kW or kVA), the more consistent a building consumes energy, the lower their costs will be.
Although the use of data in corporate decision making is on the rise, many businesses still struggle to gain meaningful insights from their data.
Operations aren’t always as glamorous as sales, but they are inextricably linked. Without operational efficiency, companies limit their sales potential, like a car with inadequate tires trying to drive based on the horsepower of its engine alone.
Many customers know that they are billed separately for on-peak and off-peak energy consumption, but many do not know the impact these periods have on their monthly energy costs. Depending on the host utility and distribution rate assigned, certain demand and consumption charges apply to on-peak consumption but do not apply to off-peak consumption.
When reducing operating costs, many methods come with unintended consequences, such as layoffs or budget reductions. While any cost reduction improves short-term profitability, companies need to consider risks that are difficult to quantify, such as the impact of employee morale and customer experience, which directly affect long-term profitability and revenue growth.