Whilst energy rates have been rising and much of the discussion has been around the Carbon Tax or “gold plated distribution networks”, there are steps that can be taken to ensure that the price paid for electricity is as low as it can possibly be. These include:
- Ensuring that your energy requirement is offered to the market when the market is competitive. While no-one has a crystal ball, the best contract rates are rarely achieved by merely waiting until the current contract expires and seeking prices.
- Understanding your consumption profile. Is your profile attractive to retailers and generators? If not, is there anything that can be done to make it more attractive?
- Reviewing the network charges. These are the charges that are incurred to have the electricity delivered to your premises. Although these charges are regulated, there are sometimes opportunities to reduce charges, by understanding the usage profile in detail.
- Reviewing your metering requirement. Some clients are surprised to find that they are paying for premium metering services, when the service is of little or no value to them.
In addition to the above areas where improvements may be made, a Cost Management Project also reviews other areas of billing to ensure that all charges have been correctly loaded in the retailer’s billing system.
While there are certainly some aspects of the cost of electricity that will continue to increase, by approaching each of the costs systematically, business owners can be confident that they are not paying more than they need to for energy.
Andrew Slimming is a Principal Consultant at Expense Reduction Analyst and specialises in all areas of energy.
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