3 Energy Cost-Saving Strategies for Building Owners and Property Managers

Key Takeaway: Building owners and property managers can control energy costs by locking in low rates, performing regular maintenance, and prioritizing value over price when choosing an energy provider.

For building owners and property managers in New York City and the Tri-State Area, managing energy expenses is a significant challenge. The constant fluctuations in prices due to supply and demand make it difficult to maintain control over costs.

Aside from the price spike resulting from the Russia-Ukraine invasion in early 2022, energy costs have remained relatively stable over the past three years. However, recent geopolitical issues and U.S. production restrictions are beginning to cause new price sensitivities.

The impact of spikes in energy prices can significantly impact a building’s annual budget. For instance, a 20-cent-per-gallon increase in heating oil can add an additional $30,000 to the annual costs for a building that consumes 150,000 gallons per year. This is a substantial expense for any business to absorb, especially when it can be mitigated.

Since 1932, Approved has been working with clients across diverse sectors, including property managers and building owners, industrial and transportation companies, and has recently begun supplying marine vessels. Clients like these rely on Approved for creative strategies to help keep energy costs low without sacrificing quality. In this post, I’ll outline a few tactics you can use to start saving money.

Savings Strategy #1: Lock In Your Rates Annually

One of the most effective strategies we offer to avoid price volatility is locking in rates for a specific period. Tailored to suit the needs of our clients, we have the capability to fix rates for any duration for a 1 to 24-month period for all types of volumes. Our team monitors the energy markets daily, advising clients on buying opportunities and helping mitigate risk and market exposure.

The current market has seen a significant pullback in prices, returning to the levels seen this time last year. This decrease comes after a period of high volatility where prices soared, reaching peaks that strained budgets. With the market now stabilizing, it seems to be an opportune time to lock in these lower rates.

Although heating fuels are seasonal, the lock-in strategy is also effective for year-round energy needs, such as conventional and biomass diesels for vehicle fleets. Currently, biodiesel costs are pretty much in line with conventional diesel, but we may see prices rise due to increasing demand and supply constraints. We are monitoring this situation closely, and looking at rates now could be a wise decision.

Savings Strategy #2: Maintain Your Equipment for Peak Efficiency

As a full-service energy provider, Approved also offers installations, upgrades and maintenance of heating systems.

Proper maintenance is essential for controlling energy costs: When your systems run optimally, your fuel consumption decreases.

Implement these three tactics to ensure peak performance:

Get an annual boiler and burner tune-up: Regular maintenance ensures your equipment is working properly and efficiently.
Keep your fuel tanks clean: Sludge at the bottom of the tank can contaminate fuel, leading to issues with pipes and filters.
Select a provider with 24/7/365 emergency support: Having access to a reliable provider around the clock ensures you can address any urgent needs immediately.

Savings Strategy #3: Avoid the Hidden Costs of Poor Quality

When vetting potential full-service energy providers- prioritize quality and value. Choosing a provider solely based on price can leave you out in the cold if you run out of fuel or your equipment fails at a critical time.

To ensure a superior level of service for all Approved customers, Approved makes significant investments in staff, equipment, technicians and training.

Employs highly skilled union technicians / drivers.
Operates 24/7, 365 days a year.
Our fleet includes state-of-the-art trucks, vans and equipment.

Approved delivers superior service with exceptional value. For homeowners, landlords and property manager alike, this peace of mind is priceless when problems arise.

Lower Your Costs with Approved

Now is the perfect time to start saving and enjoy peace of mind as an Approved customer. With locked-in rates, quality service, and comprehensive maintenance, Approved helps you control energy costs without compromising on quality. We would love to discuss how our full-service approach can benefit your energy needs.

Switching to Approved is simple: just complete our application and we’ll get you onboarded quickly. Contact us today to learn more about minimizing your energy costs while maximizing reliability.