By Gary Bullock, George Caraghiaur
A entire textual content at the operation of power carrier businesses. insurance comprises how ESCOs act as info prone that support clients make larger power purchases and make larger use of amenities, billing providers that allow buyers to minimize expenditures, and different prone which relate to strength and clear up purchaser difficulties. DLC: power industries--Management
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Extra info for A guide to energy service companies
A more typical scenario, especially for ESCOs holding shared savings contracts, is a customer’s temporary or partial retention a “change of guard” in the of payments, usually when there is customer’s staff. Indeed, a contract awarding an ESCO 80 percent of savings achieved may have been perfectly acceptable at the onset when the customer had no other practical way to implement an important project, but may become ”unreasonable” a few years later, when the real risk taken by the ESCO in implementing the project is only a faint corporate memory.
At the root of this disconnect is a mismatch between perception and reality. Customers generally perceive that when they deal with an ESCO, they actually own the project I “This fear has some foundation. In the early days of performance contracting, it was not uncommon for a customer who was unwilling to buy a $1,000 clock thermostat to permit one to be installed in return for sharing 50% of the savings realized with the ESCO. 26 A Guide to Energy Companies Service installed in every way. They believethat they are merely using the ESCO to provide creative financing in a manner completely analogous to their borrowing money from a bank.
Indeed, a contract awarding an ESCO 80 percent of savings achieved may have been perfectly acceptable at the onset when the customer had no other practical way to implement an important project, but may become ”unreasonable” a few years later, when the real risk taken by the ESCO in implementing the project is only a faint corporate memory. Credit Risk Credit risk is the risk that the customer cannot or will not pay for the project as agreed. ESCOs mitigate against this risk by designing and executing a credit screening procedure and targeting customers who have a strong credit standing.
A guide to energy service companies by Gary Bullock, George Caraghiaur