ENERGY MANAGEMENT

OVERVIEW

The energy market for business is not easy to navigate. The market changes monthly and a wide choice of energy retailers do little to make the decision process easy.


Those with extensive knowledge and time can go it alone to secure energy contracts. The majority of us lack the knowledge and time to secure the right contracts for our business.


Energy is an unavoidable and often large expense for many businesses. It is an expense that is wise to call in experts with market knowledge and skill rather than guess.

Getting the best rate possible is the goal of most organisations. But how can you be sure you are getting the best rate? Are you buying at the best time of the energy cycle? Once you have received some supplier quotes, how do you decide which one is best?

THINGS TO LOOK OUT FOR

Errors in bills
Up to 1 in 5 electricity bills contain one or more errors. Retailers have up to 5 years to claim undercharges back from you. There were over $1.68M in bill credits in the Fiscal Year ending June 15.

Lack of transparency
There are 100's of tariffs, network and other charges. This provides fertile ground for incorrect charging. In some cases a lack of detail on invoices which only show summaries also leads to incorrect charging.


Peak vs Off Peak
Time of day charging may deliver a saving where the business has a proper plan structure. A lack of clarity may make it difficult to understand which approach is right for you. Peak vs Off Peak may end up actually costing more.

Network Tariffs
Peak use is the determining factor for monthly network charges. Advice on managing the peak can generate significant savings.

BETTER BUYING OUTCOME

After reviewing a number of direct to supplier as well as market aggregators, Supply Clusters recommends the following considerations as part of your energy strategy:

  • Consider energy saving options (e.g. solar, LED etc) as part of your go-to-market strategy.
  • Look at the timing of when you go to contract (supply/demand). Avoid going to market at peak periods such as June.
  • An energy auction will cause the suppliers to bid for your business. This delivers a stronger outcome whether you have a single site or many sites.
  • Select a market intermediary who can give you transparency across all providers - not just a handful.
  • The payback on energy monitoring and reporting far outweighs the cost of the service in most cases. This service helps you keep on top of under and overcharges.
  • Choose an energy procurement provider who is a business specialist rather than limit yourself to retail providers.

THE DEAL

Supply Clusters has partnered with Energy Action to deliver on your energy needs.

Supply Clusters members receive the following benefits through Energy Action:

  • Free Reverse Energy Auction with all major suppliers
  • Brokerage fee paid by the retailer not the customer
  • Low rates for ongoing monitoring and reporting

Energy Action customers enjoy:

  • A transparent energy procurement process
  • Advanced contract management and energy use reporting




THE BOTTOM LINE

Energy represents a significant spend for most businesses. The selection of an energy supplier can have a significant impact on your bottom line. In many cases, going it alone with an energy retailer may be a bad move.

  • A lack of transparency and complex pricing make decisions difficult
  • An energy procurement provider will provide an improved business outcome

You should choose an energy procurement provider who:

  • Ensures the energy retailers and suppliers bid for your business
  • Has access to all providers not just a handful
  • Offers a completely transparent energy purchasing process

FIND OUT MORE

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