Australian Business Energy Procurement: A Comprehensive Guide

Australian businesses are constantly seeking ways to reduce their energy costs and improve their energy efficiency. Energy procurement is a critical component of managing energy consumption and usage. It is the process of purchasing energy from a supplier at the best possible price while ensuring that the energy is from a reliable source.

Understanding Australian energy procurement is essential for businesses looking to optimise their energy usage. Doing it correctly can be complex, as it involves negotiations with suppliers, analyzing energy contracts and tariffs, and managing energy consumption. Energy brokers and consultants can assist businesses in navigating the process and securing the best possible energy prices.

Key Takeaways

Contents

Understanding Energy Procurement in Australia

Energy procurement is the process of sourcing and purchasing electricity and gas for business operations. In Australia, energy procurement is an essential aspect of running a business, as energy costs are a significant expense for most companies.

To understand energy procurement in Australia, businesses need to consider several factors, including their energy requirements, retail procurement options, and demand-side opportunities. Additionally, businesses should be aware of the regulatory framework governing energy procurement in Australia. These include the National Energy Retail Law and the National Electricity Rules.

One of the first steps in energy procurement is understanding your energy use. This involves reviewing your energy bills and identifying your energy requirements. By understanding your energy consumption patterns, you can identify opportunities to reduce energy usage and costs.

Once you have a clear understanding of your energy requirements, you can explore retail procurement options. Each option has its advantages and disadvantages, and businesses should carefully consider their options before making a decision. These options include:

Another important factor in energy procurement is demand-side management. This involves managing energy usage during peak demand periods to reduce costs and improve energy efficiency. Demand-side management strategies can include energy-efficient technologies, demand response programs, and load shedding.

Overall, energy procurement is a complex process that requires careful consideration of a range of factors. By understanding their energy requirements and exploring retail procurement options and demand-side management strategies, businesses in Australia can reduce energy costs and improve their energy efficiency.

The Role of Energy Brokers and Consultants

When it comes to energy procurement for Australian businesses, energy brokers and consultants play an important role. They help businesses navigate the complex energy market, find the best energy deals, and manage their energy usage.

Energy Broker

An energy broker is a professional who acts as an intermediary between businesses and energy suppliers. They help businesses find the best energy deals and manage their energy usage. Energy brokers typically work with a range of energy suppliers, giving businesses access to a wider range of energy deals.

So, how do energy brokers help businesses? There’s a number of ways they can help, including:

Gas Broker

A gas broker is a professional who specialises in gas procurement. They help businesses find the best gas deals and manage their gas usage. They typically work with a range of gas suppliers, giving businesses access to a wider range of gas deals.

Gas brokers can help businesses in several ways, including:

In summary, energy brokers and consultants play a vital role in helping Australian businesses manage their energy and gas procurement. They provide businesses with access to a wider range of energy and gas deals, help them manage their energy and gas usage, and provide insights into the energy and gas markets.

Energy Contracts and Negotiation

When it comes to energy procurement, negotiating and signing contracts is a crucial step for businesses to secure reliable and cost-effective energy supply. Understanding the different types of energy contracts available and how to negotiate them can help businesses achieve their energy goals while mitigating risks and minimizing costs.

Electricity Contract

An electricity contract is a legally binding agreement between a business and an electricity retailer or supplier. It outlines the terms and conditions of the supply of electricity, including the price, billing methods, payment terms, contract duration, and other relevant details.

When negotiating an electricity contract, businesses should consider the following factors:

Gas Contract

A gas contract is a similar agreement between a business and a gas retailer or supplier, outlining the terms and conditions of the supply of gas, including the price, billing methods, payment terms, contract duration, and other relevant details.

When negotiating a gas contract, businesses should consider the following factors:

In summary, negotiating energy contracts can be a complex and time-consuming process, but it is essential for businesses to secure reliable and cost-effective energy supplies. By understanding the different types of contracts available and the factors to consider when negotiating them, businesses can make informed decisions that meet their energy needs and goals.

Energy Pricing and Tariffs

Businesses in Australia have a range of energy pricing and tariff options, which can be complex and difficult to understand. In this section, we will explore the different types of tariffs available for both electricity and gas, to help businesses make informed decisions about their energy procurement.

Electricity Tariff

Electricity tariffs are made up of several components, including network tariffs, energy rates, and other charges. Network tariffs are set by the local distribution company and cover the cost of delivering electricity to a business. Energy rates are the cost of the actual electricity used by a business and can vary depending on the time of day and the amount of energy consumed.

One of the most common electricity tariffs for businesses are:

Gas Tariff

Gas tariffs for businesses are typically made up of two components: 

Businesses can choose between a range of gas tariffs, including flat rate tariffs, which charge the same rate for gas usage regardless of the time of day, and time-of-use tariffs, which charge different rates depending on the time of day.

It is important for businesses to consider their energy usage patterns when choosing a gas tariff, as a time-of-use tariff may be more cost-effective for businesses that use gas primarily during off-peak hours.

Overall, businesses in Australia have a range of energy pricing and tariff options to choose from. By understanding the different types of tariffs available and their energy usage patterns, businesses can make informed decisions about their energy procurement and potentially save money on their energy bills.

Managing Energy Consumption and Usage

Managing energy consumption and usage is an important aspect of energy procurement for businesses in Australia. By understanding their energy usage patterns and implementing energy-saving measures, businesses can reduce their energy costs and contribute to a more sustainable future. Here are some ways businesses can manage their energy consumption and usage:

  1. Understand Your Energy Use

Before businesses can manage their energy consumption and usage, they need to understand how much energy they are using and when they are using it. This involves monitoring their energy bills and usage data to identify patterns and trends. Businesses can use this information to identify areas where they can reduce their energy consumption and implement energy-saving measures.

  1. Understand Your Energy Use

Before businesses can manage their energy consumption and usage, they need to understand how much energy they are using and when they are using it. This involves monitoring their energy bills and usage data to identify patterns and trends. Businesses can use this information to identify areas where they can reduce their energy consumption and implement energy-saving measures.

  1. Implement Energy-Saving Measures

Once businesses have identified areas where they can reduce their energy consumption, they can implement energy-saving measures. This can include:

  1. Manage Energy Usage

Businesses can also manage their energy usage by implementing load shifting and peak shaving strategies. Load shifting involves shifting energy usage from peak demand periods to off-peak periods, when energy prices are lower. Peak shaving involves reducing energy consumption during peak demand periods to avoid high energy prices.

By managing their energy consumption and usage, businesses can reduce their energy costs and contribute to a more sustainable future.

Strategies for Energy Efficiency and Savings

An effective strategy can help large energy users in Australia reduce their energy consumption, improve energy efficiency, and save costs. Here are some of the most effective strategies for energy efficiency and savings:

Conduct an Energy Audit

The first step towards improving energy efficiency and reducing energy costs is to conduct an energy audit. An energy audit is an assessment of the energy use and performance of a building or facility. It can help identify areas where energy is being wasted and opportunities for improvement. Large energy users can hire a professional energy auditor or use online tools to conduct an energy audit.

Implement Energy-Efficient Technologies

Implementing energy-efficient technologies is one of the most effective ways to reduce energy consumption and costs. Large energy users can invest in energy-efficient lighting, heating, ventilation, and air conditioning (HVAC) systems, and other equipment. For example, LED lights are more energy-efficient than traditional incandescent bulbs and can save up to 80% of lighting costs. Similarly, high-efficiency HVAC systems can save up to 30% of energy costs.

Optimise Energy Consumption

Large energy users can optimise their energy consumption by managing their energy demand and reducing energy waste. They can use demand response programs to shift their energy consumption to off-peak hours when energy prices are lower. They can also use energy management systems to monitor and control their energy use in real-time and identify areas where energy is being wasted.

Use Renewable Energy

Using renewable energy sources such as solar, wind, and hydropower is another effective strategy for reducing energy costs and improving energy efficiency. Large energy users can install solar panels or wind turbines on their premises to generate their own electricity. They can also purchase renewable energy certificates (RECs) to offset their energy consumption from non-renewable sources.

Participate in Energy Efficiency Programs

Large energy users can participate in energy efficiency programs offered by the government or energy retailers. These programs provide incentives and rebates for implementing energy-efficient technologies and practices. For example, the Victorian Energy Upgrades program provides rebates and discounts on energy-efficient products and services for small businesses.

By implementing these strategies, large energy users in Australia can improve their energy efficiency, reduce their energy consumption and costs, and contribute to a more sustainable future.

Understanding Your Energy Bill

When it comes to business energy procurement in Australia, understanding your energy bill is a crucial first step. By understanding the breakdown of your energy bill, you can identify areas where you can save money and reduce your energy consumption.

Demand Charges

Demand charges are a fee that is charged based on the highest amount of electricity used during a billing period. This fee is charged regardless of whether you use the maximum amount of electricity every day or just once during the billing period. Understanding your demand charges can help you identify ways to reduce your peak demand, which can lead to significant cost savings.

Network Charges

Network charges are fees that are charged by the energy distributor for the use of their network. These charges cover the cost of maintaining and upgrading the network infrastructure. Network charges can be broken down into two categories: fixed charges and variable charges. Fixed charges are a set amount that is charged regardless of how much electricity is used, while variable charges are charged based on the amount of electricity used.

It's important to understand your network charges to identify areas where you can reduce your energy consumption and save money. For example, you can reduce your network charges by using energy-efficient equipment or by adjusting your operating hours to avoid peak demand periods.

In conclusion, understanding your energy bill is an important step in managing your business's energy consumption and costs. By understanding your demand charges and network charges, you can identify areas where you can reduce your energy consumption and save money.

Optimising Energy Procurement

Optimising energy procurement is a crucial aspect of reducing energy costs for Australian businesses. It involves evaluating the energy procurement options and determining the most suitable options for the business. This process involves a combination of decision-making factors, including energy load, emissions reduction targets, electricity and fuel costs, securing future energy needs, government incentives, financial capacity, and investment priorities.

One way to optimise energy procurement is through Corporate Power Purchase Agreements (PPAs). These agreements can bring businesses certainty around energy prices, meet sustainability targets, and potentially reduce corporate energy costs. Corporate consumers are entering into Corporate Power Purchase Agreements with renewable energy projects as a means of achieving price certainty and saving on future energy costs.

Another way to optimise energy procurement is to understand retail energy bills and energy requirements. This involves reviewing energy contracts and retail procurement options and identifying demand-side opportunities. Understanding your energy usage patterns and identifying opportunities to reduce energy consumption will also help you optimise energy procurement.

Australian businesses can also benefit from procurement services offered by energy consultants. These services can help businesses identify cost-saving opportunities, negotiate favourable contract terms, and manage energy procurement risks. Energy consultants can also provide insights into energy market trends and government policies that can impact energy procurement decisions.

In summary, optimising energy procurement is crucial for Australian businesses to reduce energy costs and achieve sustainability targets. This involves evaluating energy procurement options, understanding energy bills and requirements, identifying demand-side opportunities, and leveraging procurement services offered by energy consultants.

Challenges in Energy Procurement

Energy procurement can be a complex and challenging process for Australian businesses. There are several factors that contribute to these challenges, including hidden fees, commissions, and a lack of transparency in the market.

One of the biggest challenges for businesses is the lack of independence in the energy procurement process. Many energy brokers and consultants receive commissions from energy retailers, which can lead to a conflict of interest. This can result in businesses being steered towards energy contracts that are not necessarily the best fit for their needs.

Another challenge is the presence of hidden fees in energy contracts. These fees can be difficult to identify and can significantly impact a business's energy costs. It is essential for businesses to carefully review their energy contracts to ensure that they are not being charged hidden fees.

The lack of transparency in the energy market can also make it challenging for businesses to make informed decisions about their energy procurement. Energy prices can fluctuate significantly, and businesses need to be able to access accurate and up-to-date information to make informed decisions.

Finally, the fees charged by energy brokers and consultants can also be a challenge for businesses. While these professionals can provide valuable advice and support, their fees can add up quickly. Businesses need to carefully consider whether the benefits of using a broker or consultant outweigh the costs.

In summary, energy procurement can be a complex and challenging process for Australian businesses. Hidden fees, commissions, and the lack of transparency in the market can all contribute to these challenges. Businesses need to carefully review their energy contracts, consider the benefits and costs of using a broker or consultant, and stay informed about the energy market to make informed decisions about their energy procurement.

Commercial and Industrial Energy Procurement

Commercial and industrial energy procurement refers to the process of sourcing electricity and gas contracts for businesses that operate in the commercial and industrial sectors. These businesses typically have higher energy requirements than residential customers and are classified as large market customers.

Large market customers have an annual consumption of more than 100 MWh of electricity or 1 TJ of gas. They are eligible for market-based pricing and have access to a range of retail energy products and services.

Businesses can choose to procure energy through a range of options, including fixed-price contracts, flexible contracts, and spot market purchases. Each option has its benefits and drawbacks, and businesses must choose the option that best suits their energy requirements and risk appetite.

Fixed-price contracts provide businesses with price certainty for the duration of the contract. They are suitable for businesses that require stable energy costs and are willing to forgo potential savings that may arise from market fluctuations.

Flexible contracts allow businesses to take advantage of market opportunities by adjusting their energy usage and purchasing energy at different times. They are suitable for businesses that have the flexibility to adjust their energy usage and are willing to take on some degree of risk.

Spot market purchases involve buying energy at the prevailing market price. They are suitable for businesses that have the ability to manage their energy usage in real-time and are willing to take on a higher degree of risk.

Businesses can also choose to procure renewable energy through power purchase agreements (PPAs) or green energy products. PPAs involve businesses contracting with renewable energy generators to purchase a fixed amount of renewable energy at a fixed price. Green energy products involve businesses purchasing renewable energy certificates (RECs) to offset their energy usage.

In conclusion, commercial and industrial energy procurement is a complex process that requires careful consideration of a range of factors. Businesses must choose the procurement option that best suits their energy requirements and risk appetite. They can also choose to procure renewable energy through PPAs or green energy products.

Energy Procurement for Small Businesses

Small businesses in Australia often struggle to secure affordable energy prices due to their limited bargaining power. However, there are several ways for small businesses to procure energy at competitive prices. Here are a few options:

  1. Retail Procurement

Small businesses can procure energy directly from retailers. This involves negotiating an energy contract with a retailer that meets their energy needs. Retail procurement can be a good option for small businesses that have a clear understanding of their energy requirements. However, it can be challenging for small businesses to negotiate favourable terms due to their limited bargaining power.

  1. Group Procurement

Small businesses can also join a group procurement scheme to procure energy at competitive prices. This involves forming a buying group with other small businesses to negotiate with retailers for better energy rates. This can be an effective way for small businesses to increase their bargaining power and secure better energy rates.

  1. Energy Brokers

Small businesses can also engage the services of an energy broker to procure energy on their behalf. Energy brokers have extensive knowledge of the energy market and can negotiate favourable energy contracts with retailers. However, it is important to note that energy brokers charge a fee for their services, which can be a significant expense for small businesses.

  1. Government Schemes

Small businesses can also take advantage of government schemes to procure energy at competitive prices. For example, the Small-scale Renewable Energy Scheme (SRES) provides financial incentives for small businesses that install renewable energy systems such as solar panels. The Renewable Energy Target (RET) scheme also provides incentives for businesses that generate or purchase renewable energy.

In conclusion, small businesses in Australia have several options for procuring energy at competitive prices. Retail procurement, group procurement, energy brokers, and government schemes are all viable options for small businesses to consider. It is important for small businesses to carefully evaluate their energy requirements and choose a procurement option that meets their needs and budget.

Choosing the Right Energy Supplier

When it comes to energy procurement for businesses, choosing the right energy supplier is crucial. The right supplier can help businesses save money on their energy bills, while also ensuring that they have access to reliable and sustainable energy sources.

There are several factors that businesses should consider when choosing an energy supplier. These include:

By considering these factors, businesses can choose the right energy supplier for their needs. It's important to shop around and compare options before making a decision, and to regularly review and reassess the energy supply arrangement to ensure that it continues to meet the business's needs.

Understanding Market Opportunities in Energy Procurement

When it comes to energy procurement, there are various market opportunities available to businesses. Understanding these opportunities can help businesses make informed decisions about their energy procurement strategy and maximise their cost savings.

One of the most significant market opportunities in energy procurement is the ability to negotiate energy contracts. By negotiating contracts with energy retailers, businesses can secure more favourable terms, including lower prices and longer contract lengths. This can help businesses lock in lower energy prices and reduce their overall energy costs.

Another market opportunity is the ability to take advantage of demand-side opportunities. These opportunities involve improving energy efficiency and reducing energy consumption, which can lead to lower energy bills. For example, businesses can invest in energy-efficient technologies or implement energy-efficient practices to reduce their energy consumption and costs.

Renewable energy procurement is another market opportunity that businesses can take advantage of. By procuring renewable energy, businesses can reduce their carbon footprint and demonstrate their commitment to sustainability. This can also lead to cost savings, as renewable energy prices continue to fall and become more competitive with traditional energy sources.

In addition to these market opportunities, businesses can also benefit from working with energy consultants. Energy consultants can provide expert advice and support to help businesses develop and implement an effective energy procurement strategy. This can include identifying cost-saving opportunities, negotiating energy contracts, and managing energy consumption.

Overall, understanding market opportunities in energy procurement is crucial for businesses looking to reduce their energy costs and improve their sustainability. By taking advantage of these opportunities, businesses can develop a more effective energy procurement strategy and achieve their energy goals.

Integrated Energy Procurement Solutions

Integrated energy procurement solutions are a comprehensive approach to managing a business's energy needs. These solutions provide a range of services that can help businesses reduce energy costs, improve energy efficiency, and manage energy usage effectively.

Integrated energy procurement solutions typically include a range of services such as energy audits, energy procurement, energy management, and renewable energy solutions. These services are designed to work together to provide a holistic approach to energy management, which can help businesses save money and reduce their environmental impact.

One of the key benefits of integrated energy procurement solutions is that they provide businesses with a single point of contact for all their energy needs. This can help to simplify the energy management process, reduce administrative burden, and improve communication between the business and its energy providers.

Integrated energy procurement solutions can also help businesses identify and implement energy-saving measures. Energy audits can help businesses to identify areas where energy usage can be reduced, while energy management services can help to monitor and control energy usage in real-time.

In addition, integrated energy procurement solutions can help businesses access renewable energy solutions. This can include the procurement of renewable energy certificates, the installation of solar panels, and the implementation of energy storage solutions.

Overall, integrated energy procurement solutions can provide businesses with a range of benefits, including cost savings, improved energy efficiency, and reduced environmental impact. By working with a single provider for all their energy needs, businesses can simplify the energy management process and access a range of services designed to meet their unique requirements.

The Importance of Knowledge in Energy Procurement

Energy procurement is a complex process that requires a deep understanding of the energy market, regulations, and the unique energy needs of a business. In order to make informed decisions about energy procurement, businesses must have a solid knowledge base and be able to analyse and interpret data.

One of the most important aspects of energy procurement is understanding the energy requirements of a business. This involves analysing historical energy usage data, identifying energy-intensive processes, and evaluating the impact of any changes in operations or production on energy demand. Without this knowledge, businesses may end up with an energy contract that does not meet their needs, resulting in higher costs or operational inefficiencies.

Another important factor in energy procurement is understanding the energy market. This includes knowledge of energy pricing, supply and demand dynamics, and regulatory changes that may impact energy costs. Businesses that stay up-to-date on energy market trends and changes are better equipped to negotiate energy contracts that meet their needs and provide cost savings.

In addition to understanding energy requirements and the energy market, businesses must also have knowledge of the various energy procurement options available to them. This includes evaluating the benefits and drawbacks of fixed-price contracts, index-linked contracts, and other procurement strategies. By having a solid understanding of these options, businesses can select the procurement strategy that best meets their needs and provides the most cost savings.

Overall, knowledge is a critical component of energy procurement. Businesses that have a deep understanding of their energy requirements, the energy market, and the various procurement options available to them are better equipped to make informed decisions that provide cost savings and operational efficiencies.

The Role of Metering in Energy Procurement

Metering plays a crucial role in energy procurement for Australian businesses. It is the process of measuring and recording energy consumption, which is essential for businesses to understand their energy usage patterns and identify areas where they can reduce energy consumption and costs.

Metering can be divided into two categories: interval and accumulation metering. Interval metering records energy usage at regular intervals, usually every 30 minutes, while accumulation metering records total energy usage over a given period, such as a day or a month.

Interval metering is particularly useful for businesses that have high energy demand and need to monitor their energy usage closely. It provides businesses with detailed information on energy consumption patterns and allows them to identify areas where they can reduce energy usage and costs.

Accumulation metering is more suitable for businesses that have lower energy demand and do not require detailed information on energy consumption patterns. It provides businesses with a total energy usage figure, which they can use to monitor their energy consumption and identify any significant changes.

Smart metering is another type of metering that is becoming increasingly popular in Australia. It is an advanced metering system that records energy usage in real-time and provides businesses with detailed information on energy consumption patterns. Smart metering is particularly useful for businesses that have high energy demand and need to monitor their energy usage closely.

In addition to providing businesses with information on energy consumption, metering is also essential for energy procurement. Retail energy providers use metering data to calculate bills and determine energy usage patterns. It is therefore essential for businesses to ensure that their metering data is accurate and up-to-date to avoid any billing discrepancies.

Overall, metering plays a critical role in energy procurement for Australian businesses. It provides businesses with detailed information on energy consumption patterns, which they can use to reduce energy usage and costs. It also ensures that businesses are billed accurately and helps energy providers determine energy usage patterns.

Understanding Energy Costs

Energy costs are a significant expense for businesses, and it is essential to understand how they are calculated to manage them effectively. In Australia, energy costs are calculated based on a combination of energy usage and demand charges. End-users are typically charged at a rate that is directly related to their maximum demand, levied in $/kW or $/kVA. End-users may also be charged a penalty if they exceed the maximum demand agreed to in their contract - their contract maximum demand.

It is crucial for businesses to understand their energy usage patterns to optimise their energy procurement strategy. A comprehensive analysis of their current and future energy demand is necessary to evaluate long-term renewable energy procurement options to mitigate their exposure to wholesale market prices through retail contracts and unlock value from renewable solutions.

By managing overall energy demand and the way it fluctuates from one period to the next, energy costs can be reduced. Changing consumption in response to real-time electricity prices can also generate savings or earn extra revenue. Understanding how these opportunities arise enables the development of a holistic energy procurement strategy.

To understand energy costs, businesses must first understand their energy bill. Energy bills can be complex, and it is essential to know how to read them. Energy bill examples and guides are available on the energy.gov.au website to help businesses understand their energy bill and the impact their actions have on their energy use.

Energy audits are another way to understand energy costs. They help identify areas where energy use can be reduced and energy efficiency improved. Energy.gov.au provides information on energy audits and how businesses can benefit from them.

In summary, understanding energy costs is crucial for businesses to manage their energy procurement strategy effectively. By understanding their energy usage patterns, businesses can optimise their energy procurement strategy, reduce energy costs, and unlock value from renewable solutions.

The Importance of Customer Support in Energy Procurement

When it comes to Australian business energy procurement, having access to reliable customer support is crucial for businesses to make informed decisions and efficiently manage their energy consumption. Here are some reasons why customer support is important in energy procurement:

1. Assistance with Energy Procurement

Customer support representatives can help businesses navigate the complex energy procurement process, including understanding tariff structures, negotiating contracts, and selecting the right energy supplier. They can also provide guidance on energy efficiency measures and renewable energy options that can help businesses reduce their energy costs and carbon footprint.

2. Resolving Issues and Managing Energy Consumption

In addition to assisting with energy procurement, customer support can help businesses resolve any issues related to their energy supply, such as billing errors or power outages. They can also provide valuable insights into a business's energy consumption patterns, helping them identify areas where they can reduce energy waste and save money.

3. Building Strong Relationships

Good customer support can help businesses build strong relationships with their energy suppliers, leading to better service and more favourable contract terms. By providing prompt and effective support, energy suppliers can demonstrate their commitment to customer satisfaction and build trust with their clients.

Overall, having access to reliable customer support is essential for businesses to effectively manage their energy consumption and costs. By working with energy suppliers that prioritise customer support, businesses can ensure that they have the resources and assistance they need to make informed decisions and achieve their energy goals.

The Approach to Purchasing Energy

When it comes to purchasing energy, businesses in Australia need to adopt a strategic and comprehensive approach to ensure they are getting the best value for their money. This involves evaluating their current and future energy demand and understanding their energy requirements.

Businesses need to decide how they want to manage their risk and what their corporate objectives and drivers are. This will be critical in determining the source of their electricity supply and the contract structure they adopt.

One option for businesses is to pursue carbon abatement and net zero targets. This involves evaluating long-term renewable energy procurement options to mitigate their exposure to wholesale market prices through retail contracts and unlocking value from renewable solutions.

Another important factor to consider when purchasing energy is understanding the characteristics of their energy demand. This includes identifying peak demand periods, understanding the variability of their energy usage, and assessing the impact of any energy efficiency measures they have implemented.

Businesses should also review their energy contracts regularly to ensure they are getting the best possible deal. This involves understanding their retail procurement options and demand side opportunities.

Overall, a strategic and comprehensive approach to energy procurement can help businesses in Australia manage their energy costs, reduce their carbon footprint, and achieve their sustainability goals.

Taking Control in Business Energy Procurement

In energy procurement, control is a critical factor that businesses need to consider. With the right level of control, businesses can optimise their energy procurement strategy, reduce costs, and achieve their sustainability targets. Here are some ways businesses can exercise control in energy procurement:

1. Energy Load Management

Businesses can exercise control over their energy procurement by managing their energy load. By understanding their energy usage patterns, businesses can identify areas for improvement and optimise their energy usage. For example, they can shift their energy usage to off-peak hours or reduce energy consumption during periods of high demand. This can help businesses reduce their energy bills and avoid peak demand charges.

2. Contract Negotiation

Control in energy procurement can also be achieved through contract negotiation. By negotiating energy contracts with suppliers, businesses can secure favorable terms and conditions. This includes negotiating lower energy prices, longer contract terms, and fixed prices. By doing so, businesses can have greater control over their energy costs and reduce their exposure to market volatility.

3. Renewable Business Energy Procurement

Renewable energy procurement is another way businesses can exercise control over their energy procurement. By investing in renewable energy sources such as solar and wind power, businesses can reduce their reliance on fossil fuels and achieve their sustainability targets. This can also help businesses reduce their exposure to volatile energy prices and secure a long-term, stable energy supply.

4. Energy Efficiency Measures

Implementing energy efficiency measures is another way businesses can exercise control in energy procurement. By investing in energy-efficient technologies and practices, businesses can reduce their energy consumption and lower their energy bills. This includes measures such as upgrading to energy-efficient lighting, improving insulation, and optimizing HVAC systems. These measures can help businesses achieve their sustainability targets and reduce their energy costs.

In summary, control is a critical factor in energy procurement. By managing their energy load, negotiating contracts, investing in renewable energy sources, and implementing energy efficiency measures, businesses can exercise control over their energy procurement strategy. This can help businesses reduce costs, achieve sustainability targets, and secure a stable energy supply.

Billing in Energy Procurement

Billing in energy procurement is an essential aspect of managing energy costs for businesses. It is important for businesses to understand their energy bills to identify areas where they can reduce their energy consumption and costs.

Energy bills typically include charges for energy usage, network costs, environmental charges, and other fees and charges. These charges can vary depending on the energy retailer and the type of contract. It is important for businesses to review their energy bills regularly to ensure they are being charged correctly and to identify any areas where they can reduce their energy usage.

One way to understand energy bills is to break them down into their different components. For example, a typical energy bill might include the following charges:

Businesses can also consider using Australian business energy procurement services to help them manage their energy bills. These services can help businesses to negotiate better energy contracts, monitor their energy usage, and identify areas where they can reduce their energy consumption and costs.

Overall, understanding energy bills is an important part of energy procurement for businesses. By reviewing their energy bills regularly and understanding the different charges, businesses can identify areas where they can reduce their energy consumption and costs.

The Energy Industry in Australia

Australia's energy industry is one of the most diverse and complex in the world. The country is home to abundant natural resources, including coal, natural gas, uranium, and renewable energy sources like wind and solar power. As a result, the energy sector is a vital part of the Australian economy, providing employment opportunities and contributing significantly to the country's GDP.

The energy industry in Australia is made up of various sectors, including electricity generation, transmission, and distribution, as well as gas production and distribution. The sector is dominated by a few large players, including AGL Energy, Energy Australia, and Origin Energy, which together account for a significant portion of the country's energy production.

Australian businesses are major consumers of energy, with many relying on electricity and gas to power their operations. As a result, energy procurement is a critical issue for businesses in the country, with many seeking to reduce costs and improve efficiency by securing reliable and affordable energy supplies.

The Australian government has implemented various policies and initiatives aimed at promoting energy efficiency and reducing carbon emissions. These include the National Energy Productivity Plan, which aims to improve energy productivity by 40% by 2030.

Overall, the energy industry in Australia is a complex and dynamic sector, with many challenges and opportunities for businesses and policymakers alike. As the country continues to transition towards a more sustainable and efficient energy system, it is likely that we will see significant changes in the sector in the coming years.

Best Price in Australian Business Energy Procurement

When it comes to energy procurement, businesses are always looking for the best price possible. However, finding the best price in energy procurement can be a challenging task, especially when market conditions are volatile and unpredictable. Here are some tips to help businesses get the best price in energy procurement:

1. Conduct a thorough market analysis

To get the best price in energy procurement, businesses need to have a good understanding of the energy market. This means conducting a thorough market analysis to identify market trends, price fluctuations, and supply and demand dynamics. By doing so, businesses can make informed decisions about when to buy energy and at what price.

2. Negotiate with suppliers

Another way to get the best price in energy procurement is to negotiate with suppliers. Businesses should not be afraid to negotiate with suppliers to get a better deal. This could involve asking for a discount, negotiating payment terms, or asking for additional services to be included in the contract.

3. Consider long-term contracts

Long-term contracts can also help businesses get the best price in energy procurement. By signing a long-term contract, businesses can lock in a fixed price for energy, which can help them avoid price fluctuations in the short term. However, businesses should be aware that long-term contracts may not always be the best option, especially if market conditions change.

4. Use an energy broker

Finally, businesses can also use an energy broker to help them get the best price in energy procurement. Energy brokers have access to a wide range of suppliers and can help businesses find the best deal for their energy needs. They can also help businesses negotiate with suppliers and manage their energy contracts.

In conclusion, getting the best price in energy procurement requires businesses to conduct a thorough market analysis, negotiate with suppliers, consider long-term contracts, and use an energy broker. By following these tips, businesses can ensure that they are getting the best deal possible for their energy needs.

Frequently Asked Questions

How do Australian businesses procure energy?

Australian businesses can procure energy through retail procurement options such as tendering and negotiating environmental credits. They can also use intermediaries to negotiate energy procurement, which can be beneficial given the challenges that procuring energy poses.

What are the benefits of procuring energy from Australian-owned companies?

Procuring energy from Australian-owned companies can provide benefits such as supporting the local economy, reducing reliance on overseas energy sources, and ensuring compliance with Australian regulations.

Which Tier 1 retailers in Australia offer the best energy procurement options for businesses?

There are several Tier 1 retailers in Australia that offer energy procurement options for businesses, including AGL, EnergyAustralia, and Origin Energy. The best option for a particular business will depend on factors such as energy usage, location, and budget.

What factors should Australian businesses consider when procuring energy?

When procuring energy, Australian businesses should consider factors such as energy usage patterns, the type of energy source, the cost of energy, and the reliability of the energy supply. They should also consider the environmental impact of the energy source and ensure compliance with Australian regulations.

How can Australian businesses ensure they are procuring sustainable energy?

Australian businesses can ensure they are procuring sustainable energy by using renewable energy sources such as wind, solar, and hydro power. They can also use energy efficiency measures such as energy-efficient lighting and appliances.

What is the role of the Australian government in regulating energy procurement for businesses?

The Australian government regulates energy procurement for businesses through various policies and regulations. These include the National Electricity Law and the Renewable Energy Target, which aim to promote renewable energy and reduce greenhouse gas emissions. The government also provides information and resources to help businesses make informed decisions about energy procurement.

Media Release: Energy Action Launches Utilibox

A Ground-breaking Energy & Emissions Management Platform for Australian Businesses

SYDNEY, Australia, 1 May 2023 - Energy Action Limited (ASX: EAX) recently announced to the ASX the launch of Utilibox, an innovative energy and emissions management software that empowers Australian businesses to begin their Net Zero journey effortlessly. Utilibox is a comprehensive energy management solution designed to help companies reduce energy costs, minimize emissions, and streamline finance and analysis processes.

Interim CEO and Director shared his enthusiasm, "Utilibox is a step change in the quality of our energy management services, giving our customers a value-added experience with complex energy data. We're excited to bring Utilibox to market and to help all Australian businesses kickstart their Net Zero journey while reducing costs and emissions."

"Utilibox leverages years of research and development, incorporating artificial intelligence to deliver an energy management solution tailored to the needs of Australian businesses." Clint Irving, Energy Action's CTO, stated, "Our clever technology helps businesses reduce their energy costs and emissions even in the face of high-priced, carbon-intensive energy. Leveraging Energy Action's extensive energy-market knowledge and client insights, Utilibox offers personalized, cost-effective insights for reducing expenses and achieving net-zero emissions. We're thrilled to offer Utilibox to our customers as a game-changing product."

With the global push for decarbonization, Energy Action is dedicated to helping Australian businesses make meaningful strides towards achieving Net Zero. Energy Action’s customer surveys reveal that while most businesses want to set a Net Zero goal, 70 - 80% are uncertain about where to start or deterred by the perceived expense. Utilibox aims to address these concerns by providing customer-specific emissions reduction insights, forward pricing, and re-contracting processes to lower energy costs.

Utilibox offers a wide range of key benefits, including:

By incorporating Utilibox into their energy management strategies, medium and large-sized organizations can take decisive action toward achieving net-zero emissions while reducing costs. This powerful platform not only promotes environmental responsibility but also paves the way for businesses to meet the expectations of stakeholders, suppliers, and families as they work to deliver a low-emissions future. You can find out more on Utilibox by clicking here.

About Energy Action Limited:

Energy Action Limited (ASX.EAX) is an energy procurement and energy management service provider based in Australia. Founded in 2000, the company delivers energy services to over 7,000 clients across more than 15,000 sites. Energy Action aims to help all Australian businesses embark on their inevitable journey toward Net Zero.

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For more information on Utilibox or Energy Action, please visit www.energyaction.com.au or contact:

Bruce Macfarlane

Interim CEO and Director

Bruce.macfarlane@energyaction.com.au

Breathing New Life into Brupeg

How Energy Action’s solar specialist created a 98% Net Zero boat.

When you’re passionate about a subject, it invariably happens that there’s a crossover between your work life and your personal life. That’s certainly true of Energy Action’s solar champion, Damien Ashdown. For, together with his wife, Jess, he’s spent the last six years on a labour of love bringing back to life – renewing, if you will – a lovely old prawn trawler called Brupeg that had sunk to the bottom of the sea.

Damien takes up the story, “When we bought Brupeg, it had been underwater for two months. We bought it as a completely stripped out bare shell, and we’ve been re-building it since into a global expedition and research boat. It’s almost as much work as building a boat from scratch as you have to basically build every system. But we’re almost finished: we’re about three months away from launching.”

Every challenge accepted.

Damien certainly loves a challenge. As he says, “I’ve got a real passion for solving challenges and engineering problems. And for me, solar and batteries are things that can solve a lot of problems.” Working for Energy Action certainly throws up many challenges. Having started off as a Business Development Manager six years ago, Damien has moved through different roles with the company, in the process looking after some of the more complex accounts.

Before and after shots

I’ve got a real passion for solving challenges and engineering problems.”

This suits him to a tee. “I guess I got a bit of exposure to weird and wonderful solutions for really big corporates so it was doing all sorts of out-of-the-box thinking, like looking at manufacturing processes and seeing if a company could time shifts to make it more energy-efficient. Things like that.”

More recently, Damien has taken on the role of Energy Action’s solar champion, as part of the larger business aspiration to help customers move towards Net Zero and remove their environmental impact. Damien’s role is to support Energy Action’s clients and service providers to connect to deliver high-quality outcomes from the solar install market. And he is seeing some great success: “We ran our first auction for a behind-the-meter PPA in June, and delivered a 12% reduction from the initial price from the successful supplier to their final price at the conclusion of the auction. There is real depth and variety in this market now, and customers need expertise to navigate it effectively: we saw 47% between the highest initial bid and the final price submitted to auction”.

His client list extends to a diverse range of industries, including manufacturing, mining, healthcare, construction, farming, accommodation and many smaller business.

Brupeg, named after original builders Bruce and Peggy is, based in Burnett Heads, just outside of Bundaberg, Queensland. “I do most of my work remotely,” says Damien. “But where necessary, I’ll go on-site and work out the best solution, or get people on site to do things like electrical surveys or route surveys. I don’t need to fly around the country to do this work so not only does that keep the cost down for the customer but it also means we minimise our carbon footprint.”

Getting to 98% Net Zero.

Damien has lived on boats for about a decade now so he knows what it’s like to live completely off-grid. “You have absolutely no back-up, you’re 100% self-sufficient with solar and batteries and wind. So for me, what I do at work is an extension of that. I know intimately what it means to have reliability issues if you haven’t got it right.”

Brupeg is 17 metres (57 feet) long and fully loaded weighs about 70 tonnes. So just how did Damien and Jess get their boat to 98% Net Zero? Damien explains: “Because we’ve had to rebuild it fully we got to choose all the systems – we don’t have any legacy systems. In its simplest term – and this applies equally to our customers – we electrify everything. Get rid of things like natural gas and diesel, and make everything we can electric. And that electricity needs to be powered by solar and wind and batteries, just so that you’ve got some backup.”

The main engineering challenge is the diesel engines. Rather than run them on straight diesel Damien says they use waste cooking oil. In fact, all the engines are modified to run on 100% waste vegetable oil. There’s still the issue that the boat has to be started up on diesel before swapping to oil once it gets to operating temperature and back to diesel just before it’s shut down. And that’s where the 98% figure comes from. But Damien says this can still be overcome by substituting bio-diesel or through carbon credits to reach that magic 100% Net Zero.

Squeezing every last dollar.

Brupeg is a community-funded research boat, paid for by donations from around the world. “So”, says Damien, “part of that means finding more efficient ways of spending every dollar. One of the reasons I’m passionate about this is it’s actually cheaper for us to run a carbon neutral boat and be environmentally responsible than it is to fill it up with diesel. Right now, it would cost us about 15% of the price to run off diesel.”

And it’s not just Damien and his crew benefitting either. As he says: “That’s something we see with our customers as well. Customers will often have a target to meet, which might be say 50% renewable energy. Five years ago that would come at a cost, whereas, right now, if somebody said I have a 50% target, I can normally do that with the savings. So it’s actually cheaper to be environmentally responsible now.”

If you’d like to follow Damien and Brugpeg’s story or add your donation to the cause, you’ll find over 200 videos on the boat’s transformation on his YouTube channel.

You can watch how Damien and Jess installed Marine Solar Power by clicking here.

If you'd like more information on getting your business on solar, check out our Solar Auctions by clicking here.

Energy Action on the changing Australian energy landscape

Energy Action's Australia’s leading energy management organisation dedicated to providing financial advice on electricity derivatives and preparing innovative energy management solutions to their wholesale consumers across a wide range of industry sectors.

“In response to growing consumer demands, businesses are now trying to find ways to reduce, eliminate or create renewable methods to achieve net zero to ensure a neutral footprint on the environment. The bushfires have been a wake-up call for businesses to take up affirmative action to achieve net zero in the future.” 

John Huggart, Chief Executive Officer of Energy Action, Australia

Despite the Australian bushfires providing a rocky start to the new decade, businesses and consumers can remain confident in the government’s ability to secure a successful energy transition towards a low-carbon future. Particularly, three important themes for the upcoming year focus on how business energy consumers will benefit from lower energy prices, how businesses will operate in a supply over demand landscape and the rising social and corporate discussion surrounding net zero.

Major corporations including Qantas and Lendlease and prominent politicians including Anthony Albanese have become important public figures leading important discussions on solving the climate crisis. Their fierce determination has inspired thousands of other businesses and government entities to create their own initiatives in reducing carbon emissions and achieving a net zero Australia.

“For customers and businesses to achieve net zero, they will definitely need to meet key targets. First thing is they need to measure their environmental footprint and discover where all their energy is being used. Then businesses decide the best measure to reduce their energy usage and should make the active choice to purchase green energy.”

John Huggart, Chief Executive Officer of Energy Action, Australia

Although prices are slowly decreasing, there are potential energy risks that will impact Australian businesses. The introduction of renewable energy to the national grid is intermittent and isn’t ideally matched to consumer consumption requirements. Although coal-fired power plants were an option, they bring inherent risk to the future of the energy market.

In addition, government policy regarding the energy crisis does not drive any potential investment in energy generation. The absence of policy integration to respond to the climate crisis combined with minimal supply of lower carbon opportunities means no funding has been provided to bridge the growing gap towards lower investments in renewable energy.

To ensure an energy efficient future, Energy Action encourages government bodies in Australia to embrace hydro and battery power as a viable alternative for coal and recommend business energy buyers to enter power purchase agreements to underpin new investments whilst supporting future energy demands.

Original article was published here.

How we helped 86 Victorian sites unlock an average of $6,700 in savings per site in January

As each year comes to a close, Victorian networks make applications to the Australian Energy Regulator (AER) to make changes to their network charges. Once approved and the determinations are finalised, they come into effect on 1 January for the State of Victoria (the same occurs on 1 July for most other states).  As part of our Energy Metrics service, eligible Victorian sites receive an annual review to assess if they can move to a more favourable tariff to secure savings.

In this year’s network tariff review, Energy Action has uncovered more than $575,000 worth of savings for business energy buyers when it analysed over 700 Victorian sites. 86 sites were winners with savings of more than $1000, and the average saving equating to $6,700. 16 of these lucky sites will benefit from unlocking savings of over $10,000. The single biggest saving from a client changing network tariff was $18,400.

This year’s tariff review and associated cost reduction forms part of the total $18.9 million in client savings uncovered by Energy Action since 2014. The Top 17 companies will realise an estimated saving of $295,000.

"This year's major winner was the healthcare space and particularly the Aged Care industry. Our two largest savings were secured in this space and will achieve a combined estimated savings exceeding $63,000. One Victorian aged care facility has an estimated $37,000 annual saving across nine sites and a health care organisation has secured over $26,000 in savings per year across eleven sites," shares Energy Action Chief Executive Officer, John Huggart.

The network tariff is what energy retailers and network operators charge you to use their infrastructure to deliver electricity to your business. As part of the annual review process, Energy Action independently assesses the current network tariff of its clients and calculates the savings associated with moving to a more favourable tariff based your location in the network and your actual load profile.

"The process of evaluating your current tariff and selecting the best option for your business can be complex and there are a number of factors that can influence the associated business energy costs," explains Huggart.

"We have gotten it down to a fine art and our energy management team continue to deliver exceptional results for our clients. To date we have identified almost $19 million worth of savings for our clients since 2014. We are incredibly proud of this achievement."

The major considerations that drive network charges include the historical electricity usage of your business, including the time of day during which your maximum, and actual, use occurs. The tariff is applied differently depending on these usage patterns and can be more or less costly as a result. These periods could include a combination of Peak, Off Peak, Shoulder and other network-defined periods.

Our annual review, as part of the Energy Metrics service, continues to demonstrate that through understanding these factors, and taking action to transfer to a different tariff, many businesses stand to benefit from a significant reduction in your electricity bill. And in an environment where electricity prices remain elevated, taking this step can aid in managing the associated, and often significant, costs.

If you would like to enquire about the Energy Metrics service and having an independent network tariff review for your account, please get in touch with us today

Energy Action recognised among Top 10 Renewable Energy consulting/service companies in APAC

Energy Action is pleased to announce that it has secured a place as one of Energy CIO’s Insights’ top 10 renewable energy consulting firms in the Asia-Pacific region as part of the 2019 awards program.

Energy CIO Insights, a global publisher delivering analysis of issues relating to energy markets and energy technology, conducts the annual awards program based on a range of factors including excellence in client service, products and service quality and areas of differentiation.

The inclusion as a finalist in this year’s top renewable energy consulting firms followed Energy Action’s independent nomination, and selection by Energy CIO Insights’ advisory panel comprising top operational and technology executives in the global energy sector in conjunction with the publication’s editorial board.

Energy Action was recognised both for the quality of its energy management services and energy procurement outcomes delivered to clients in the renewable energy space, which forms part of a holistic energy management offering that together, assists clients to minimise energy costs, reduce emissions, and increase the value of their assets.

Energy Action’s Chief Executive Officer, John Huggart, said: “We are pleased to be recognised for providing best-in-class consulting services within the renewable energy segment, supported by our capability and ongoing focus on enhancing client service.”

“The ranking among the region’s top providers is a testament to Energy Action’s core strengths, including the expertise of our national team, independence to advise on the best deals and systems that support efficient delivery.”

View the full article here: CIO Insights - Energy Action 'Delivering a holistic solution to lowering energy costs and driving efficiency''

Energy Action Outreach Day

On Tuesday 4th June, our wonderful offshore team in the Philippines alongside our Energy Action Operations Director, Amber Gillogly participated in a team building/volunteer outreach day with the Aeta Tribe located in Sitio, Porac, Pampanga.

The team set out to the village, approximately 40 minutes from their office in Clark, loaded with care parcels, clothing and toys to donate to the community. The care parcels included 3 kilograms of rice, sardines, noodles and other groceries, which were distributed to the 105 families within the tribe, as well as a load of school supplies for the children and slippers for the adults.

The community has been living with no electricity, so the team supplied and installed 4 Solar lights, to not only give light in times of dark, but also to act as a safety & security feature at key locations in the village.

The day concluded with a feast put on by our Philippines team and an afternoon of games and laughter. All of the gifts were warmly received by the tribe with overwhelming gratitude and thanks.

The team are already brainstorming ideas and making plans for Energy Action outreach days for the future.

Thank you to everyone who was involved in making this day happen.

“We make a living by what we get. We make a life by what we give.” ―Winston S. Churchill

Appointment of Energy Action CEO

The New Year is in full swing and we would like to formally introduce Energy Action's new Chief Executive Officer (CEO), John Huggart.

John joined Energy Action in 2018 as General Manager of Consultancy Services and towards the end of the year was appointed as CEO of the company. With his strong background in the energy industry gained through experience at AGL, Origin and Alinta Energy, and new start up Pooled Energy, John brings with him a wealth of knowledge and passion to guide the team at Energy Action.

John is a passionate leader who is inspired by driving strategic change, building winning teams and achieving improved outcomes for customers, partners and stakeholders.

Energy Action is a strong and profitable business and with the current market conditions, it has never been a more exciting time to be in the energy space.

The team at Energy Action are excited to see where John will lead the company in 2019, and look forward to a busy year, helping our business energy clients understand and control their energy needs.

Energy Action Price Index to include WA Pricing

For over 5 years, our Energy Action Price Index (EAPI) has been keeping the commercial and industrial (C&I) electricity market in the NEM abreast of pricing movements with our extensive pricing data received through our reverse auction platform.

To date, there has been no independent market pricing publicly available for the electricity market in Western Australia, known as the South West Interconnecting System (SWIS). Following the shift in the Western Australian market to offer unbundled pricing for C&I clients, pricing transparency and negotiation of energy-only rates has become simpler. This paved the way for Energy Action to begin conducting reverse auctions for the WA Market almost 3 years ago.

In October, we expect to launch the first static version of the EAPI, which will include a WA indication of where pricing is. This information will be updated and released on a weekly basis and available through your Account Manager.

Data is representative of pricing events from more than 200 WA auctions each year and incorporates data of more than 400 NMIs. Pricing is currently secured through five active retailers who participate in WA Auctions on the Australian Energy Exchange. These retailers are, Alinta, Synergy, ERM, Change Energy and Perth Energy. This is a growing market for Energy Action, and we anticipate the auction rates to grow and, in turn, see the pricing become tightly aligned with market movements and pricing trends.

As with the current Energy Action Price Index, the chart provides indicative insights on the market movements of the retail price of the energy-only component of a C&I electricity contract.

For more information, contact your Account Manager, or your nearest Energy Action office.

Energy Action receives accreditation as Embedded Network Manager

Energy Action is one of the first in Australia to receive accreditation under the National Electricity Rules to operate as an Embedded Network Manager, completing the service suite that Energy Action provides to embedded networks.

The Embedded Network Manager (ENM) is a new position recently created by the Australian Energy Regulator and requiring accreditation by AEMO. From 1st December 2017 most embedded networks with 30 or more customers must appoint an Embedded Network Manager. All embedded networks with one or more customers that are already taking supply from an authorised retailer must also appoint an Embedded Network Manager irrespective of the number of customers attached to the embedded network.

The responsibility of the ENM is to manage the market interface for customers connected to embedded networks that wish to take supply from an authorised retailer whilst remaining electrically connected to the embedded network. This requires AEMO’s systems to be updated so that the new retailer can bill and settle with the market for the electricity supplied to the customer. The Embedded Network Manager is also tasked with providing any customer wishing to take supply from an authorised retailer with the prices that they will be charged for network services as well as providing the incoming authorised retailer with certain information about metering that is required for the transfer to take place.

The establishment of this position comes on the back of some long held complaints from embedded network customers.  Many find it much too difficult to either get a quote from an authorised retailer for the electricity only component of their bill, they don’t know how much they will still have to pay to the embedded network owner for network services once they have signed away. They also can’t easily get transferred to a new retailer so they don’t know from when their new contract will start.

With the creation of the Embedded Network Manager role all of these problems should be resolved much more quickly than in the past and the transfer of embedded network customers to authorised retailers should be achievable quickly.

This is a key milestone in our growth strategy as it will allow us to facilitate the transfer of a customer from off-market to on-market (and back again if required). It is a condition of exemption under the National Energy Rules that network exemption holders either become an ENM or appoint one in certain situations.

In order to get embedded network owners on the front foot the regulator is requiring most of them to appoint an Embedded Network Manager in advance of any of any customer requesting to take supply from an authorised retailer. This is so that they will be prepared when any such request is received.

The Regulator has already required all but the smallest embedded networks to register, so they is aware of who is operating embedded networks and will have a reasonable estimate of their size. Failure to register an embedded network with the Regulator can result in the owner being fined, and fines of up to $100,000 have already been issued. Failure to appoint an Embedded Network Manager may result in similar action from the Regulator, and whilst they have stated that they will not actively pursue failures of appointment for several months after the 1st December deadline, this is at the Regulator’s discretion and cannot be taken for granted.

The requirements on embedded network owners are increasingly complex and the creation of the Embedded Network Manager attests to this continuing trend. If you are the owner of an embedded network and are unsure of what your responsibilities are under the various regulations governing these businesses you should contact us and our regulatory specialists will be happy to assist you.

Services provided to embedded network owners by Energy Action now cover the full spectrum of embedded network operation including:

Energy Action is proud to be able to offer its customers this service and we look forward to working further as an Embedded Network Manager (ENM) with our clients in the future.