Cadence Network Team offers Solution for the Confusion Faced by Retailers
May 2, 2006
Cincinnati, OH -- May 2, 2006 – Want a better rate on electricity from your landlord? Often, you just have to know how to ask for it, say expense management experts at Cadence Network, Inc.
Frequently, the reason tenants are overcharged is because when a lessee signs a lease for space within a larger complex, the assumption is made that they will get the best deal available on their utilities. Unfortunately, because of a lack of critical business intelligence regarding electric consumption combined with complex lease terminology, most retailers are not getting the best rate, and it’s costing them thousands of dollars a month.
Many factors are used to determine the rate a store should pay for their electricity. Electric utilities throughout North America offer multiple rate options to customers and the best rate depends on the characteristics of their load profile. However, retail establishments that lease storefronts are not always billed by landlords at the lowest rate for which they qualify. In many cases the retail store may qualify for a lower rate and not even know it. Additionally, they don’t know that they must ask for the better rate from the landlord in order to get it.
“If a landlord is able to purchase electric at 5 cents per kilowatt-hour (KWH) and charge their stores 10 cents per KWH, what would be the benefit for them to be proactive and tell the stores that they actually qualify for the 8 cent rate?” Mike Donahue, Vice President of Lease Auditing at Cadence Network said. “What the landlords are doing is not wrong, it’s just not the best course of action for those individual store owners looking to be as efficient as possible.”
For stores that have landlord billed energy costs, Cadence experts recommend using an outsource organization that specializes in analyzing the lease terms and is experienced in utility rate analysis. Due to the fact that every utility company has a different system for classifying rate structures, even the nomenclature becomes confusing for those who are not familiar with it, said Cadence executives.
“Retail owners who try to analyze their bills and determine the best rates will inevitably become confused and will likely miss important information,” Donahue said. “Cadence is experienced in utility rate auditing; retail outlets can be confident that we will identify the best rate available to them, ensure that the rate is implemented and that the proper rate is secured over time, even when rates change from year to year.”
About Cadence:
Cadence Network, Inc. delivers comprehensive utility, telecommunications and lease facility expense management to chain stores, multiple site businesses and government. The people, services and software of Cadence Network enable business and government to gain control over electric, gas, water, waste, lease and telecommunications expenses by streamlining such services as invoice auditing and payment, rate analysis, and procurement. At work in over 250,000 locations nationwide, Cadence Network is an EnergyStar Partner of the United States Environmental Protection Agency and a proud supporter of The Arbor Day Foundation.
CONTACTS
Cadence Network Contact: Ben Dolan, Cadence Network, Inc. 866-CADENCE (866.223.3623) bdolan@cadencenetwork.com