Frequently Asked Questions

Commercial energy procurement is the process of sourcing and securing electricity and natural gas supply contracts for businesses at competitive rates. Rather than accepting default utility rates, procurement involves analyzing the market, soliciting bids from multiple suppliers, negotiating contract terms, and timing purchases to minimize cost and risk.

The most effective way to reduce business energy costs is to work with an independent energy procurement advisor who can access multiple suppliers, analyze forward market curves, and negotiate on your behalf. Key strategies include shopping your contract 3–6 months before renewal, comparing fixed vs. variable rate structures, aggregating multiple meters or locations, and auditing existing bills for billing errors.

Energy brokers typically earn commissions from suppliers and may represent a limited panel of providers. Independent energy consultants like Gastricity are paid by the client and have no supplier affiliations, which means every recommendation is made purely in the client's interest. Gastricity operates as a fully independent advisor with access to the full competitive market.

In deregulated energy markets — including most of Texas, Pennsylvania, Ohio, Illinois, New York, and other states — businesses can choose their electricity or natural gas supplier rather than buying from the default utility. Gastricity navigates the deregulated market on your behalf, soliciting competitive bids, comparing contract structures, and securing the best available terms.

Ideally, 3 to 6 months before your current contract expires. Starting early gives you time to analyze the market, solicit multiple bids, and negotiate without the pressure of an imminent auto-renewal. Gastricity monitors your contract timelines and proactively initiates the procurement process so you never get caught in an expensive rollover rate.

Gastricity combines deep market intelligence, aggregated buying power across hundreds of commercial clients, and experienced contract negotiators to secure electricity and natural gas contracts at rates most businesses cannot achieve on their own. On average, our clients realize 18% savings compared to their previous contracts.

Gastricity works with commercial and industrial energy buyers across all sectors — including manufacturing, retail, healthcare, hospitality, real estate, and multi-site businesses. We serve clients with annual energy spend ranging from $50,000 to tens of millions of dollars.

No. Gastricity is completely independent and has no financial relationships with any energy supplier. Our compensation comes from our clients, not from supplier commissions, which means our advice is always aligned with your interests.

Our process has five steps: (1) Energy audit — we analyze your usage history, current contracts, and cost structure. (2) Market analysis — we assess current and forward market conditions to identify the optimal procurement window. (3) Supplier solicitation — we issue RFPs to qualified suppliers and collect competitive bids. (4) Contract negotiation — we negotiate pricing, terms, and flexibility provisions. (5) Ongoing management — we monitor your contracts, track market movements, and manage renewals proactively.

Gastricity clients average 18% savings on their energy contracts compared to their prior agreements. Actual savings depend on your current rate, contract structure, market conditions, and energy volume. We provide a free assessment that includes a clear estimate of potential savings before you commit to working with us.

A fixed-rate contract locks in your energy price for the contract term, providing budget certainty regardless of market fluctuations. A variable-rate contract floats with the wholesale market, which can mean lower costs when prices fall but higher exposure when they rise. Gastricity analyzes your risk tolerance and market conditions to recommend the right structure for your business.

Energy risk management involves strategies to protect your business from price volatility in electricity and natural gas markets. This includes choosing the right contract structure (fixed, indexed, or blended), layering purchases over time to average market exposure, and using financial instruments to hedge against price spikes. Gastricity builds a risk management strategy tailored to your budget sensitivity and operational requirements.

Yes. Gastricity sources renewable electricity through green tariffs, Renewable Energy Certificates (RECs), Power Purchase Agreements (PPAs), and community solar programs. We help businesses meet sustainability goals without sacrificing cost competitiveness, and we structure renewable contracts to align with your ESG reporting requirements.

A utility bill audit is a systematic review of your electricity and gas invoices to identify billing errors, incorrect rate classifications, demand charge anomalies, and overcharges. Gastricity's audits frequently uncover recoverable credits and ongoing savings that offset procurement costs entirely. Many businesses are unknowingly overbilled due to complex tariff structures.

Commercial electricity procurement is the process of sourcing competitive electricity supply contracts for businesses in deregulated markets. Instead of defaulting to your utility's standard rate, Gastricity solicits bids from licensed retail electricity providers (REPs), compares pricing across fixed, indexed, and block-and-index structures, and negotiates contract terms that reflect your load profile and risk tolerance. The result is a supply contract that typically delivers 10–25% savings versus default utility rates.

Deregulated electricity markets where businesses can choose their supplier include Texas (ERCOT), Pennsylvania, Ohio, Illinois, New Jersey, New York, Maryland, Connecticut, Massachusetts, Michigan, and several others. Each market has different rules, supplier options, and pricing structures. Gastricity operates across all major deregulated electricity markets in the United States and can advise on whether your location qualifies for competitive procurement.

A retail electricity provider (REP) is a licensed company that purchases wholesale electricity and resells it to commercial and industrial customers in deregulated markets. Choosing the right REP involves evaluating financial stability, contract flexibility, pricing transparency, and customer service track record — not just the headline rate. Gastricity manages the full RFP process, vets all bidding REPs, and presents a side-by-side comparison so you can make an informed decision.

A block-and-index contract is a hybrid electricity pricing structure where a portion of your expected load is purchased at a fixed price (the 'block') and the remainder is priced at the floating wholesale index. This structure allows businesses to lock in budget certainty on their baseload while retaining some exposure to favorable market movements. Gastricity designs block-and-index strategies based on your load shape, risk tolerance, and forward market conditions.

Commercial natural gas procurement involves sourcing competitive supply contracts for businesses that use natural gas for heating, manufacturing, or power generation. In deregulated gas markets, businesses can choose their gas supplier rather than buying from the local distribution company (LDC) at default rates. Gastricity solicits bids from competitive natural gas suppliers, benchmarks pricing against Henry Hub and basis differentials, and negotiates contract terms that align with your consumption patterns and budget requirements.

Henry Hub is the primary pricing benchmark for natural gas in the United States, located in Erath, Louisiana. Most commercial natural gas contracts are priced as a fixed or floating spread above the Henry Hub spot or futures price. When Henry Hub prices rise — due to cold weather, supply disruptions, or export demand — your gas costs increase if you're on a variable contract. Gastricity monitors Henry Hub forward curves and advises on when to lock in fixed pricing to protect your budget from price spikes.

The right choice depends on your budget sensitivity, consumption volume, and view on market direction. Fixed-price natural gas contracts provide certainty — you know exactly what you'll pay per MMBtu for the contract term. Indexed contracts float with the market, which can be advantageous when prices are falling but exposes you to spikes. Gastricity analyzes your load profile and the current forward curve to recommend the optimal structure, and can design blended strategies that balance certainty with market participation.

Basis risk refers to the price difference between Henry Hub (the national benchmark) and the delivery point closest to your facility. Even if you lock in a fixed Henry Hub price, your actual gas cost includes a basis component that can fluctuate based on local pipeline capacity, regional supply and demand, and seasonal factors. Gastricity accounts for basis risk in every natural gas procurement strategy, helping you understand your all-in delivered cost rather than just the commodity price.