Energy bills jumped 10-29% across New Jersey this past June. But there's a way to fight back that most business owners don't even know about. Go to https://theenergyconsultantnj.com for more information.
If you run a business in New Jersey, you've probably noticed something painful on your electricity bills since June. For most businesses, costs jumped somewhere between 10% and 29%. That's not a small blip. We're talking about a massive increase that's eating into already tight margins, and it's not going away anytime soon.
What's behind this mess? Back in July 2024, something called the PJM capacity auction happened. Without getting too deep into the weeds, this auction determines how much suppliers pay for capacity on the electrical grid. That auction saw prices spike by 833% compared to the year before. New Jersey energy costs are directly tied to these capacity charges, which means businesses across the state have been feeling the pain since the changes took effect in June. Think about what a 20% or 30% increase means for your monthly expenses over the past six months.
Several factors contributed to this perfect storm. Power plant retirements haven't been matched by new generation coming online fast enough. Meanwhile, electricity demand keeps growing, partly because of data centers and other high-consumption facilities popping up across the region. When supply drops and demand rises, prices go up. It's basic economics, but knowing that doesn't make it any easier to swallow when you're the one paying higher bills month after month.
New Jersey deregulated its energy market back in 1999. What that means in plain English is this: you're not stuck with just one energy supplier. The company that delivers your electricity through the wires is separate from the company that actually supplies the power. You can shop around for better rates on the supply portion of your bill.
But here's where it gets tricky. Most business owners either don't know they have choices, or they know but find the whole process overwhelming. You're already juggling payroll, inventory, customer service, and about fifty other things. Who has time to research energy suppliers and compare contract terms?
This is where working with an energy consultant comes into its own. Instead of spending hours researching suppliers, reading confusing contracts, and trying to figure out which deal is actually better, you can have someone handle that legwork for you. They compare rates from multiple suppliers, explain the contract terms in normal language, and help you understand what you're actually signing up for.
You'll typically get quotes from several licensed suppliers serving your area. That means you can see what different companies are offering and make an informed choice, rather than just accepting whatever rate your current supplier gives you. Some contracts offer fixed rates that protect you from future increases. Others might have variable rates that could work in your favor if market conditions improve. Comparing energy plans helps you understand which option fits your specific situation.
Energy costs aren't going back to what they were. The new pricing structure is here to stay, at least for the next few years. But that doesn't mean you're powerless. You've been paying these higher rates for six months now. Taking an hour or two to explore your options could save you thousands of dollars going forward. When margins are tight and every expense matters, those savings add up fast.
Check out the link in the description to learn more! The Energy Consultant NJ City: Bayonne Address: 104 W 16th St Website: https://theenergyconsultantnj.com Phone: +1 201 892 2587 Email: askmike@theenergyconsultantnj.com