{{ content.title }}

Commercial and industrial companies are no strangers to volatility and the pressure it places on operating margins. Market uncertainty, supply chain disruption, material shortages, and geopolitical tensions are constant challenges – especially for companies that rely on global suppliers from countries like China, Mexico, and Canada.

Recent turmoil in trade policy has only intensified this pressure. A wave of new tariffs is making it more expensive to import critical components, particularly from China, leaving U.S. companies scrambling to maintain clarity and control amid growing uncertainty. Given the globalized nature of modern supply chains, many U.S. companies source key inputs from abroad. Now, they face tough decisions to control rising operational costs while preserving competitiveness.

The ripple effect of tariffs on operational costs

In this volatile trade environment, long-term planning becomes increasingly tricky. Companies are re-evaluating everything from procurement strategies to project timelines to minimize tariff impact. Options under consideration include delaying investments, reconfiguring supply chains, renegotiating vendor contracts, absorbing the cost increases internally, or passing these costs on to customers.

Tariffs can drive up operational costs across the board – from raw materials and electronics to construction inputs like steel and aluminum, which may even increase the cost of commercial leases. And energy affordability may soon be in the crosshairs as well.

Although current tariffs don’t directly impact electricity, there’s growing concern about what lies ahead. The potential for tariffs on electricity imports – especially from Canada – remains unclear. As a precaution, regional grid operators are preparing. In April, the Federal Energy Regulatory Commission (FERC) approved tariff-related filings from two northern grid operators: the New York Independent System Operator (NYISO) and ISO New England (ISO-NE). These approvals allow them to establish frameworks for collecting tariffs, should federal authorities require it in the future. If implemented, these tariffs could add tens of millions of dollars in costs to energy consumers.

How demand response can help offset potential tariff impacts

With global trade dynamics shifting and uncertainty surrounding tariffs intensifying, companies are under pressure to be nimble. Flexibility and operational agility are now more essential than ever – not just to survive, but to thrive. Companies can build immediate resilience against sudden policy shifts and regulatory unpredictability by homing in on operational costs – like their electricity consumption – and embracing flexible energy usage.

While supply chain redesigns and infrastructure investments can take months – even years – to execute, energy flexibility programs, like demand response, offer a near-term solution that can deliver immediate value. And the best part? Participation typically leverages assets companies already have.

Grid or utility-sponsored demand response programs pay companies to temporarily reduce or shift energy usage when the electric grid faces supply challenges that threaten grid stability. By being strategically flexible with their energy consumption and reducing load when called upon by the grid – like adjusting set points on thermostats, dimming lighting, or shutting down a manufacturing line, for example – companies can:

• Earn payments for every kilowatt of electricity they don’t use during these critical moments.

• Gain valuable insight into their energy usage, enabling them to make efficiency improvements and reduce energy costs.

• Further optimize demand response participation by forecasting when electricity prices will be high, to ensure business operation when it’s most economical.

By participating in demand response and executing the right energy reduction strategy, companies can transform an OPEX cost like energy into a strategic asset – cutting costs without compromising performance.

Demand response: turning uncertainty into opportunity

Tariff-driven cost pressures are real. However, this uncertainty presents a unique opportunity for forward-thinking companies to gain a competitive edge. Tariffs may be out of your control – but how you respond to them isn’t. Demand response offers a proactive, practical strategy to manage risk, reduce operational expenses, and protect your margins.

By participating in demand response, you can take control of your energy expenses, bolster operational resilience, and position your company as a leader in a more dynamic and sustainable energy landscape.

Working with a trusted demand response provider, like Enel North America, is essential to participating successfully (and earning money!) in demand response. As the global leader in demand response, Enel has the resources to help you drive value from demand response, with personalized energy reduction plans, deep market expertise in more than 15 energy markets across the United States and Canada, and a team by your side every step of the way.

There’s already enough volatility in today’s business landscape. At Enel, we believe demand response should be the opposite – simple, rewarding, and low-risk. When you choose Enel, you’re not just selecting a provider – you’re partnering with a trusted leader backed by over two decades of experience and the strength of a global demand response company. We offer stability, reliability, and long-term value from demand response participation so you can stay focused on your business – while we handle the rest.

Enel has consistently demonstrated the ability to: 

• Identify and initiate new demand response opportunities

• Demystify complexity by accurately and transparently representing earning potential

• Help our customers fully capitalize on available revenue streams

• Minimize risk by shielding our customers from penalties associated with underperformance

Enel applies a customer-first approach at every stage of the demand response lifecycle, backed by world-class technology, proven processes, and unmatched industry experience. These strengths – and our unwavering commitment to our customers – make Enel the demand response provider of choice for companies looking to maximize value and stay ahead in a changing energy landscape.

Contact our team today to learn more about participating in demand response – and how much you can earn.