Last updated on August 12, 2020
When it comes to home and business energy management, the key distinction is in the way utilities set contracts. In general, home energy users are typically given a “rolling” contract that has no definite end date. Resource For business gas and electric customers, however, consumers have much more flexibility in the terms of the contract. For example, for a business customer who purchases large amounts of power and wants to purchase a large amount of electricity as well, he or she may wish to consider a long term contract with a utility company.
Business Energy Savings the Difference Between Profit Or Loss
In many cases, the difference in the two types of contracts is in how they are set up. Most home and business power and gas customers find that the utility company, which they originally bought their power from, will provide them with a full year’s worth of energy supplies on their first year of service, while they are required to pay the same cost for the remainder of the contract period every year.
For many home and business power customers, this can be a very expensive situation. Typically, the cost is much greater than what they would have paid were the cost of purchasing electricity and gas from a local utility company, but they have no other option. Because their utility company is the only provider available for them, they must rely on it to purchase their power and gas.