Learn More About the Basics of the Energy Market
At Orzel Energy Solutions, our priority is helping businesses understand how to shop and save money.
Energy Basics for businesses
There are two main retail energy commodities.
- Natural gas
We help commercial establishments and nonprofit organization buy these commodities at discounted rates. Please see Chaim’s blog for more detailed information.
There are two main retail energy commodities, which are natural gas and electricity. We help commercial establishments and nonprofit organizations get these commodities at discounted rates. Our company also assists them in getting these resources at a fixed rate so that they can save money and budget for their energy needs.
Where will my savings come from?
Regardless of business, natural gas or electricity bills have two parts. That is, supply and delivery.
Delivery vs. Supply Supply Charges
Supply Charges are the actual purchase of natural gas and electricity. We help our customers pay less for their supply.
These are the costs everyone pays utility companies for delivering the supply (commodity) to your business. These charges are set by your local utility company. There is no savings for customers when it comes to delivery.
How Is Energy Sold?
Natural gas is sold by the therm (or CCF). You can think of therm as a unit of natural gas.
Supply Rates for natural gas
- Your business uses 100 therms
- Example price: $0.50 Per Therm
100 Therms x Example price: $0.50 Per Therm= Supply charges will be $50.00
Supply Rates for Electricity
Electricity is sold by per kilowatt-hour (kWh). You can think of a kWh as a unit of electricity.
- Your business uses 100 kWhs
- Example price: $0.10
100 kWh x Example price: $0.10 Per kWh = Supply Charge $10.00
The main idea is, if you pay a lower supply price (example price per therm and/or kWh), your organization can save a significant amount of money.
There are two types of supply rates:
- Variable Rates - is when the supply rate changes on a monthly basis. If the natural gas and electricity markets go up, your bills will be higher and vice versa. Variable rates are the default setting for customers who have their supply from their utility company.
- Fixed Rates - is when a customer pays a fixed price per kWh or therm. It makes no difference whether prices go up or down; you are still always going to pay the same price per kWh or therm.