I am constantly asked by various classes of consumers if there is a benefit to buying their energy through an association, buying group or aggregation.  While the concept of an aggregate or “bulk” purchase sounds simple and economic, the reality of energy commodity costs is that they are valued by time rather than quantity like office supplies or paper products. 

Energy is an actively traded commodity, and is therefore valued on a time-of-use and time-of-purchase basis.  Every consumer has a distinct time-of-use consumption profile [i.e. on-peak use, off-peak use, seasonal use, demand characteristics, etc.] and accordingly their energy costs are valued based upon how their energy will be consumed [time-of-use] and when they purchase their energy [time-of-purchase].  Given each consumer’s unique consumption pattern, their unique budget requirements, and their purchasing schedule, their participation in a “group buy” will have different consequences for each participant.  For instance, one participant may gain value from another participant’s “more attractive” consumption pattern…while the other participant will lose value by inheriting a “less attractive” time-of-use consumption pattern.  Another participant may be forced to purchase their energy at a certain time in the market, when their budget requirements would be better served by allocating the purchase over time in incremental quantities.  The list of tradeoffs goes on and on, but generally speaking there is a loser for every winner in an aggregated buy.  Accordingly, there is no net value to aggregation; just impression of value and accordingly SilentSherpa does not encourage the practice. 

Over the years of administering thousands of energy contracts, I have found the most efficient, fair and economic means to procure energy is purchasing each consumer’s requirements individually.  Given the amount of consumer load SilentSherpa represents in the marketplace, each of our clients receive many of the “bulk” negotiating and product option benefits claimed by buying groups [i.e. extended payment terms, custom contract structures, reduced supplier services fee, etc.]…while preserving each client's own economic benefits and procurement options.  This is not to mention that you are being advised by a professional advisor who works for you and represents your interests, not an association that is likely receiving kick-backs from a competitive energy supplier which poses a conflict of interest.