Judy Rosatti is the manager of MBA EnergyAdvisors, an affiliate of the Manufacturer & Business Association (MBA). She has an abundance of consulting experience assisting a variety of businesses in reducing their costs and increasing their bottom line for the past 25 years.
You may have noticed a sudden spike in the number of electricity calls you are getting at your place of business. Why? Recently, several laws and regulations in neighboring New York state have limited such solicitation, and these suppliers/brokers — which number more than 300 in Pennsylvania — are turning their attention to the Keystone State and your business.
Buyer Beware
Many of these callers speak fast and are highly skilled at what they do — selling electricity programs. Many will lead you to believe they are with the utility and that they are not changing your service. Indeed, your “service,” the word they use for distribution, will not change. However, they do want to change your supplier.
Much of your information is already available to these callers. They will use this material to make it sound like they already know your account — a formality to be sure you are getting the best rate. When the “Price to Compare” (PTC) is increasing, many of these callers use scare tactics that sound something like, “Rates are increasing by X percent. You need to lock into a rate now to avoid this increase! “When the PTC is down, the calls will sound something like, “Rates have gone down. You are entitled to a lower rate, and we just want to be sure you are receiving it.” Some may even offer rebates. Beware of rebates; they require participation for 12 months and, during that time, will increase your monthly rate to supplement that so-called rebate. All approaches are marketing techniques.
How Can You Protect Your Business?
Here are some simple steps that can help:
1.) Do not provide any specific information and never say “yes” over the phone. Most calls are recorded; any yes can be used as authorization to switch an account. Even an innocent confirmation of your account number can be considered a verbal commitment.
2.) Know who your supplier is presently. Be sure you know and understand your current contract, terms and price. Many callers want you to believe they know your contract terms. They will tell you most suppliers do not have penalties for early termination and can trick you into early cancellation. Most suppliers do have early termination clauses, which can cost you significant early termination fees.
3.) Ask for everything in writing. Review all documentation. Know what is and is not included in your rate and ask for a second set of eyes to examine any contract before signing.
Remember the old adage: If it sounds too good to be true, it often is. You can save your business a lot of headache by empowering yourself and being selective about your energy provider.
To learn more about how EnergyAdvisors can help you, contact Judy Rosatti at jrosatti@mbausa.org or 814/833-3200.
