TL;DR

Venues often treat electricity as a profit center where surprise power charges can blow an event budget. The defenses: get power estimates from your production partner early; always request written cost breakdowns before signing venue contracts; and negotiate power fees as part of larger room/F&B deals. Also specify energy efficient gear, such as LED lighting and laser projectors.

Do corporate event venues exhibit a tendency to inflate power costs? The short answer: some can and some do transmit electrical markups. 

It’s not unusual for hotels, convention centers and other corporate event venues to charge separately for electricity used by audiovisual (AV) equipment, lighting, staging and event production systems. These charges can catch meeting planners off guard, particularly when they aren’t clearly identified during the venue selection and contracting process.

For some venues, electrical services represent an additional revenue source. Charges may include power consumption, electrical distribution, equipment rental, installation labor and service fees.

Because venue power costs can become a significant event production expense, planners and their AV partners need strategies to anticipate, manage and potentially reduce these charges.

Here’s how to avoid overspending on electricity at your next corporate event.

1. Estimate Event Power Requirements Early

Accurate electrical planning is one of the most effective ways to avoid unexpected venue power charges.

Work with your AV production partner early in the event planning process to determine how much electrical power your event will require.

An experienced event production company can evaluate power requirements based on the size and type of event, equipment specifications, room configurations and production complexity.

This includes estimating electricity needs for:

• Audio systems and microphones
• Video displays, LED walls and projectors
• Stage and architectural lighting
• Video production and presentation equipment
• Technical control systems and supporting equipment

Your production partner can also help identify opportunities to optimize electrical distribution, avoid requesting unnecessary power capacity and ensure compliance with applicable electrical safety requirements.

The goal is to determine how much power your event actually needs before the venue determines what it will charge.

2. Understand and Negotiate Venue Electrical Charges

Electrical pricing policies vary significantly among corporate event venues.

Some hotels and conference facilities include basic electrical service in their room rental fees. Others charge separately for dedicated circuits, electrical distribution equipment, installation labor or metered electricity consumption.

Before signing a venue contract, request a written estimate that identifies all potential electrical charges.

Ask the venue to clarify:

• Whether basic room electricity is included in the rental agreement
• How additional power is priced, including charges for circuits or electrical capacity
• Whether electrical distribution equipment and installation labor are billed separately
• Whether service charges, minimum fees or other electrical-related costs apply
• Whether power fees can be negotiated or included in the overall venue agreement

These questions can help event planners identify hidden or unexpected costs before they become contractual obligations.

If your event includes substantial guest room blocks, meeting space rentals or food and beverage commitments, use that purchasing leverage to negotiate electrical charges.

Depending on the venue and the size of your event, power fees may be reduced, bundled into other services or potentially waived.

3. Choose Energy-Efficient AV Equipment

Modern audiovisual equipment is often smaller, more capable and more energy-efficient than previous generations of event production technology.

Experienced AV production companies can help reduce electrical requirements by selecting equipment that delivers the necessary performance without excessive power consumption.

Energy-efficient AV technologies include:

• LED lighting: Modern LED fixtures generally consume less electricity and produce less heat than traditional incandescent or tungsten stage lighting.
• Laser projectors: Many laser projection systems offer improved energy efficiency and reduced maintenance requirements compared with older lamp-based projectors.
• Modern audio equipment: Efficient amplifiers and powered speaker systems can help optimize electrical consumption.
• Updated video and control systems: Newer production equipment may provide greater processing capability while requiring less power than older systems.

Depending on the equipment and overall production design, these technologies can significantly reduce electrical demand. For example, an event that previously required 200 amps of service might be redesigned to operate on 100 amps, although actual savings depend on the specific equipment and technical requirements.

Reducing electrical demand may also lower the cost of power distribution equipment and related venue services.

Beyond potential cost savings, energy-efficient AV equipment supports the growing emphasis on sustainability in corporate meetings and event production.

While every corporate event venue may not overcharge for power, there is a notable trend of inflated pricing and hidden fees associated with electricity usage. Careful planning and negotiation can reduce or eliminate potential shocks for your next event.