Chapter 18. Natural Gas and Electricity Purchasing Strategies for Mid-Sized Industrials

  1. William M. Carty
  1. Steve Sabean

Published Online: 26 MAR 2008

DOI: 10.1002/9780470294734.ch18

Materials & Equipment/Whitewares: Ceramic Engineering and Science Proceedings, Volume 23, Issue 2

Materials & Equipment/Whitewares: Ceramic Engineering and Science Proceedings, Volume 23, Issue 2

How to Cite

Sabean, S. (2002) Natural Gas and Electricity Purchasing Strategies for Mid-Sized Industrials, in Materials & Equipment/Whitewares: Ceramic Engineering and Science Proceedings, Volume 23, Issue 2 (ed W. M. Carty), John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9780470294734.ch18

Author Information

  1. Premstar Energy Canada Limited, Waterloo Ontario, Canada

Publication History

  1. Published Online: 26 MAR 2008
  2. Published Print: 1 JAN 2002

ISBN Information

Print ISBN: 9780470375778

Online ISBN: 9780470294734

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Keywords:

  • purchasing strategies;
  • natural gas;
  • electricity;
  • natural gas prices;
  • mid-sized industrials

Summary

During 2000, natural gas prices more than quadrupled, causing senior managers. purchasing teams, and corporate head offices to take a more active role in the natural gas purchasing decision. The various departments have had to become more aware of the company's decisions to be comfortable that they are making the best choices that ultimately affect the bottom line. What was once a relatively simple buying process when prices were stable and options were limited has turned into a laborious and complicated buying activity fraught with anxiety and indecisiveness. Electricity deregulation is just around the corner, and many of the processes and options will be very similar. To best understand an energy purchase, buyers need to build a good working relationship with an energy supplier that is trustworthy, reliable, and willing to spend the time needed to provide superior service. This presentation will examine the key differences among agents, consultants, marketers, traders, and producers as well as help energy buyers identify important services ofered by these groups to ensure the best value. The risks and benefits as well as the strengths and weaknesses of each of these groups will also be explored.