AEC Consulting Services, a division of Advances Energy Capital (AEC), is run by professionals who can assist marketers in becoming Retail Energy Providers (REP).
Many successful marketers are looking to have equity in a business and own a “piece of the rock.” Instead of earning commissions and being at the mercy of REPs, hoping they perform, marketers want to open their own REP. Coming with a bit of capital and a general vision of what they want to create, marketers can work with AEC to launch their REPs.
WHY BECOME A RETAIL ENERGY PROVIDER?
Retail Energy Providers (REPs) are currently exploiting a natural market. The deregulated Natural Gas market is a $10 billion industry and growing. The power market is a vast multiple of that. There are currently 31 deregulated states, with more utility territories likely to deregulate and open their markets.
Energy Reselling is experiencing exponential growth, with current market participants growing as fast as 30% compounded growth per year and more. There is significant market share still available to Retail Energy Providers in key states (NY, PA, NJ, CT, OH, IL, MI, and others). A majority of residential customers in the Northeast, still with the utilities, are available for REPs to convert. Some REPs have experienced triple digit growth. Retail Electric sales alone (excluding Natural Gas) will reach 16% of the overall U.S. Market, making it one of the five largest Electric markets worldwide.
AEC CAN ASSIST WITH THE FOLLOWING KEY STEPS WHEN BECOMING A REP:
- Start-Up and Business Plan Development – AEC can facilitate the development process by creating the business plan, sales projections, marketing plans, assisting with applications for Public Utility Commissions, website design, etc.
- Capital Raising – AEC can help a start-up REP raise capital. AEC can create marketing materials, attend the fundraising meetings, conduct the presentations and help REPs close the deals. Additionally, AEC can be hired to raise the capital required for the business from its own investors with a separate agreement and fee schedule.
- Sales Consulting – Having the right product offerings at the right prices are important but just as important is selecting the correct channel strategy to bring those products to market.
- Outsourcing and Third-Party Providers – REPs need to have the right systems to facilitate customer and broker enrollments, track customers and commissions, and provide timely information on the number of customers and usage by product type by state.
- Product Costing and Retail Price Support – A competitive Retail Energy Provider must be able to have a pricing methodology that takes into consideration a wide array of cost information.
- Gas Demand Forecasting, Hedging, Scheduling, and Risk Management – AEC can assist you in screening and selecting a service provider that can provide the operations and management of your pools for the utility service area(s) you operate in.
- Growth – AEC can help you develop and execute a market expansion strategy that can include growing your footprint into other states, enhancing your product offerings to meet the need of the new market, determining the appropriate channel development options for more efficient and effective market penetration, and hedging strategies based upon your entire book of business.
- Regulatory Affairs – Compliance fuels the market’s perception of your company as a reputable, high-quality supplier, but it can be a real challenge to understand the various laws, regulations, and rules governing your business. AEC will guide you to the right professionals that can assist.
- Selling the REP – REP owners are currently enjoying generous valuations. Owners of REPs are retiring early after building strong businesses. AEC assists REPs in the exit plan, whether by merger or acquisition.
For more details regarding AEC Consulting Services, click here to view the full “AEC Consulting Services” brochure.