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Arbitration of energy costs

image credit: Decision making processes have never been more important!
Rafael Herzberg's picture
Consultant energy affairs Self employed

Rafael Herzberg- is an independent energy consultant, self-employed (since 2018) based in São Paulo, Brazil* Focus on C level, VPs and upper managers associated to energy related info, analysis...

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  • May 12, 2020
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Arbitration of energy costs

Price variations for energy sources are part of the new reality here in Brazil and around the globe!

Permanently discovering the portfolio of sources that combine competitiveness, availability and robustness of supply has become essential for those who wish to achieve and maintain differentiated costs.

A simple but emblematic example is what happens at my own home. To be able to arbitrate costs I have electric and gas heaters, installed for decades.

I) Current price of electricity

The total charged by the concessionaire for the energy consumed this month was R$ 0.75/kWh (1 USD = R$ 5,8)

II) Current price of LPG gas

The cost of a 45 kg plug, delivered at home, is R$ 0.5/kWh of available chemical energy. So...I favor gas heating. It saves 34%.

In the corporate environment, the same reasoning can and should be applied. Of course, taking into account the list of factors involved - technical, management and financial.

Rafael Herzberg's picture
Thank Rafael for the Post!
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