Open Energy Data

Let the sun shine in.

How new rules will open energy data to customers.

If there’s one thing more illuminating than the electrons delivered by energy companies – it’s the household usage data stored on their servers. Energy companies know how and when customers use energy, deliberately designing prices to make people pay more, while running processes designed to frustrate competition.

It is possible for customers to get and share their data, but the process is long-winded and off-putting. So most people give in at the thought of trying to understand and manage their energy better. In effect, the energy industry enjoys a monopoly over data, and this has allowed them to give lousy service while fending off new entrants offering brighter services. For Australia, that’s all about to change.

Change is in the air

Twenty years ago, energy companies effectively achieved self-regulation by writing the rules they’d be regulated by. They then went on to staff the working groups that designed and implemented any changes to those rules. The result has been to protect their revenues by plugging consumers into twenty years of glacial change.

What’s sparking this desire for change is the Customer Data Right (CDR) movement extending into energy. Open energy data, regulated by the ACCC, with rules written by Treasury, will shift the data ownership from energy companies to customers. From November 2022, energy companies will be compelled to share data with customer-nominated certified third parties.

Energy companies are blowing a fuse – maintaining that the data is irrelevant to customers and that the new mandate will impose unnecessary costs. Their lobbying of Treasury to exclude certain customers and data, and to delay the process, is unsurprising – and in [my/our] view, wrong.

Why open energy data is good

Energy Action believes that opening up energy data is good for customers and for competition – allowing the market to offer innovation. For individuals, energy data could connect children to their grandparents, letting them know the morning kettle boiled or the dinnertime lights turned on. For businesses, technology can aggregate energy data in one place, allowing companies to drive down their costs or find the best way to get to Net Zero emissions. The new rules compel energy companies to share data within tight timeframes – something they’ve never had to do before.

Ensuring data access is secure

CDR is intended to make it easy for customers to access their own data so they can use it how they want. Energy companies’ concerns about sharing customer details with third parties –creating barely believable scare stories –are disconnected from the real world.

The reality is, third parties that want to access energy data will need to be ACCC accredited. They will need to demonstrate that their data defences are robust, and submit to annual audits. And they will need to clearly explain how data might be used – as consent to share is easily revocable. It’s arguable that many online energy data managers will actually become more secure, because of the security standards that have to be met.

Open energy data will drag reluctant energy companies into the internet age, requiring them to accept customer click-through consent, rather than the quaint forms they demand today.

Customers are the winners

As the regulator, the ACCC will need to become more ruthless to ensure that energy companies comply with CDR timelines. Already delayed once, energy companies are continuing to say that CDR is complicated and time consuming. Yet energy companies have been communicating for 20 years using B2B technology, so the technology infrastructure to support CDR is already in place – it just needs minor enhancements.

Energy companies are fighting to minimise losing control over what they view as their own customer data. They’re trying to exclude business customers from CDR, even though it’s businesses that will benefit the most financially.

It’s imperative that the ACCC holds its nerve in response to energy company lobbying. Open energy data will give energy techs the opportunity to build new and better businesses and push energy companies to improve their services. In both cases, the ultimate winners are the customers.

For more information on this subject, register for our free webinar "Open Energy Data - What it means for Australian Businesses" on Tuesday 29th March at 11:00am AEDT.

What can an Energy Consultant do for you?

Smart businesses understand the value of a consultant. Consultants work from a unique perspective.  It’s an outsider’s perspective initially, which allows them to consider issues and opportunities objectively. When you add in years of experience and industry-specific expertise, along with technology that can uncover invaluable insights, a consultant’s value is clear.

That’s why over 7,000 clients have trusted the energy consultancy services of Energy Action. We take a look at some of the key areas that an Energy Action consultant can add value to your business.

Use data to your advantage.

Let’s face it, energy bills can be extremely complex. Whether it’s trying to understand the different network tariffs or getting a handle on which area of your business is the most power-hungry, it’s things you and your team don’t have time for. But it’s meat and drink to an Energy Action consultant. Using our smart Energy Management technology, our consultants can identify energy inefficiencies and unnecessary costs in a business – to both lower usage and reduce spend. In short, our consultants can ensure you:

Make the most of market knowledge.

Like the stock market, the energy market is in a constant state of flux. Through regular monitoring, Energy Action consultants have an in-depth understanding of the pricing trends and can recommend the best time to go to market. Such timely advice recently netted one client a 26.85% saving for its Victoria operation and 22.49% for its NSW site. Market monitoring can help your business:

Procure a more cost-effective energy deal.

Central to Energy Action’s 20 years of independent energy consultancy is our energy buying service: in particular, our Reverse Energy Auction. Through this, we invite multiple retailers to bid for your energy business. It’s generally a short 10 minute auction that you can watch live. It’s fascinating to watch on as retailers battle to win your energy contract, often resulting in a 20% reduction from the first to last bid.

Negotiate across multiple metrics.

There is more than one way to negotiate a better energy deal. Beyond the competitive bids of a Reverse Energy Auction or Request for Proposals, our consultants can also negotiate around different criteria, such as length of contract – anything from 12 to 36-months – discounts on usage, discounts on usage and supply charges, plus a lot more. Even the Terms & Conditions are negotiable. It can all add up to a better energy deal.

Help you move to Net Zero.

If, like many businesses and local councils, moving to Net Zero is a priority, our consultants can help you make the transition. Quickly, if necessary, through our Green Auction. Electricity procured in this way is 100% renewable energy and meets all Net Zero reporting standards.

Our business is saving your business unnecessary energy expense and emissions. So our consultants are always just a phone call away, ready with data-driven analytics and other tools to help you minimise your energy costs. They’re not just energy consultants – they’re your energy partner.

The Reverse Auction: 7 Ways to Reduce Your Costs

Auctions were once the preserve of the grand, the formal, the stuffy, selling items like fine art, antiques and jewellery. Then the internet came along and put a new spin on things. Now, smart businesses are using online auctions to reduce costs – not inflate them – through eProcurement.

Energy Action has been at the forefront of this reverse auction revolution. So just how does a reverse energy auction drive costs down? Here are 7 amazing ways.

#1. Accelerates contract award.

Traditional offline tender processes can take weeks or months, depending on the complexity of the tender. A reverse energy auction, however, can be set up in next to no time and takes only 10 minutes (or up to 15 minutes in some circumstances) from start to finish. This drastically reduces tender preparation time while vastly accelerating the time to contract award.

#2. Ensures real market pricing.

There can be a great deal of uncertainty for energy retailers in a traditional tender. So it’s not unusual to see inflated prices with tender-cost-of-sale margins. Online live energy auctions deliver transparent prices from other suppliers, so it’s clear to all bidding retailers where the market is. The result? Greater certainty for retailers and prices that truly reflect market pricing for the customer.

#3. Increases competition.

The catalyst for competition in the energy market was, of course, deregulation. In the past 15 years or so, as state governments have allowed private companies to compete in the energy market, multiple energy retailers have emerged. Now there are over 30 retailers. Energy auctions have driven competition further as they not only allow retailers to compete on price but also get a clear understanding of how competitive they are in the market.

#4. Standardises offer comparisons.

Before the auction, Energy Action gathers the customer’s energy data and information so bidding retailers know precisely what the energy requirements are. For the reverse auction, retailers submit their offers in a common format, through a single platform. This means the offers are standardised so comparisons are accurate.

#5. Validates retailers.

Another benefit of retailers understanding the customer’s energy requirements before the auction is that it ensures their offer matches those requirements. In fact, best practice reverse auctions incorporate processes that ask retailers to check their offers as well as confirm them in any re-bidding. For retailers, it minimises costly errors and extra work, while for customers it validates the retailers as being able to deliver on their energy needs.

#6. Improves processes.

Reverse Auctions improve the process of energy buying immeasurably. They help procurement professionals establish comprehensive category plans, and, by their nature, reverse auctions standardise RFP preparation, publication and evaluation. In short, energy auctions are more efficient, more streamlined, and more cost-effective.

#7. Reduces costs for retailers and customers.

Ultimately, everyone benefits from online reverse auctions. Retailers: through smarter, more streamlined processes; better understanding of how competitive they are; and knowing that a customer has committed to a contract. Customers: through being able to choose from multiple retailers; accelerating the contract award; knowing that their requirements are met; and above all, achieving a competitive rate.

Smarter, faster and more price-competitive, a reverse energy auction through Energy Action gives your organisation the opportunity to substantially reduce your energy costs and lock in long-term pricing. Perhaps it’s time you said… “Bring on the auctioneer!” 

Pitching in for Movember

It’s hard to believe that it’s 18 years since Movember began its annual crusade in support of men’s health. 2003 was the year Movember first launched with the idea of “growing a mo for a bro” to raise awareness and money for men’s health issues, and in that time this ground-breaking charity has funded more than 1,250 men’s health projects globally. It’s gone from 30 moustaches to 5 million and been embraced by Mo Bros and Mo Sisters around the world. Now, as they say: “We’re taking them all on.” That is: men’s mental health and suicide prevention, prostate cancer and testicular cancer.

CEO shows the way.

One of those supporting the charity this year by growing the mo is Energy Action’s CEO, Bruce Macfarlane. Why is he getting involved? “I guess it’s not so much for me but for the people that it really means everything to: the fathers, brothers, friends who are dealing with some of these health issues. Good health – whether that’s mental or physical – is something we all want, so it’s great to get involved and raise money for this worthy cause. It’s also a bit of fun for everyone at Energy Action as they can see that I’m not enjoying having facial hair on the top of my upper lip!”

Many ways to get involved.

At the heart of Movember is the desire to help men live happier, healthier and longer lives. In order to achieve this, the charity has, over the years, expanded the ways people can get involved. In 2021, amongst the many ways to raise funds, you can grow a moustache (of course), take part in “Move for Movember” –  a 60km run or walk for the 60 men lost to suicide across the world every hour –“Host a Mo-Ment” – create and host your own event – and even “Mo your own way”. It’s all about putting these very serious issues to the front of our minds whilst raising money for those having to deal with them.

Putting energy into our actions.

Also taking part in Movember is Edwin Rogers, General Manager – Sales at Energy Action. Edwin said, “When I first bumped across the Movember concept, I fondly loved the quote “Grow a Mo to Save a Bro”. I decided not only to grow a Mo, but to add a beard as well, as a sign of commitment to this great cause. My wife and kids do not like it at all, but hey, it’s fun annoying them for all they put me through (only joking, family!). 

Many a time, as fathers, we are so conscious of providing the best for our families that we often tend not take care of ourselves. I am doing this to increase the awareness that men, as stoic they tend to be, are vulnerable, especially to mental health and prostate cancer among others. It is a great month of the year to remember that what we do in raising funds will touch not only the lives of our fellow men but in turn all humankind. It is not just about having this Mo but a chance to do More for a Bro.”

From its humble beginnings in Melbourne in 2003 to a global phenomenon in 2021, this visionary charity has made an invaluable contribution to men’s health around the world. If you would like to get involved, check out the website: au.movember.com

5 ways to sell energy consultancy to your CFO

Your company’s CFO is not the only one in the business concerned about the bottom line; but they’re usually the most obsessed. And rightly so. Because no matter what size of business – from SME’s to large multi-state organisations – any efficiencies that can be found, across any aspect of the business, can make a big difference to profitability. So it should come as no surprise that over 7,000 clients – and hundreds of CFOs – have engaged the energy consultancy services of Energy Action. Here are 5 ways that you can convince your CFO to add their name to that list.  

#1. Get energy retailers competing for your energy business.

There’s nothing like a bit of competition to drive down prices. So rather than see your energy bill as an unnegotiable cost, tied to one retailer, see it as an area of your business that, to an energy retailer, is worth competing for. With Energy Buying services like our Reverse Auction or Request for Proposals, we engage multiple energy retailers to put forward pricing options. The result? In most cases, a bottom line saving of 20%+ on costs.

#2. Enjoy certainty, with locked-in prices.

One of the many benefits of our Reverse Auction process is that we ask energy retailers to provide quotes for multiple terms; the most common being 24 and 36 months. The incentive for the retailer to win the business over that timescale – and potentially beyond – is clear, but for your CFO, one of the most important benefits is that the price achieved will be locked-in for the term of the contract. In other words, it provides them with certainty around future energy costs, and all the benefits that entails for forward planning and budgeting.

#3. Add another expert to your team – our expert.

Just as you and your team are experts in your industry, so the Energy Action team of business consultants and account managers are experts in theirs. They have their fingers on the pulse of the energy market, with a range of resources and analytics tools ensuring they have an in-depth knowledge of the market at any given time. As such, they’re always on hand to offer timely advice – for example, if there’s an opportunity to take advantage of lower prices. Partner with us and see how  our team becomes one of your team.

#4. Reduce costs, lower emissions.

With our Energy Management technology you can turn confusing energy data into a positive. Just as your CFO will analyse every aspect of your business, we analyse every element of your energy bill to ensure you only pay for what you use. More than that, we can also show you the energy-hungry areas of your business, to help you uncover potential cost savings. And if your network tariffs change, we’ll review the charges to make sure you still get the most cost-effective tariff for your business. Lowering costs while lowering emissions has to be a win win.

#5. Save time and energy.

Your CFO already has their day filled with their day job. Why would they waste precious time and energy (pun intended), or any team member’s energy, running around – and ringing around – multiple retailers to get quotes that may save you a small percentage on your energy bill? In short, they don’t have to. Let us run around on your behalf.

These are just five of the many ways that an energy consultant like Energy Action can add real value to your business. Are you ready to put the case to your CFO?

What is a Reverse Energy Auction?

We’re all familiar with the idea of an auction, particularly a property auction. You know, where people stand around with a group of strangers and nervously place their bids in the hope of securing their dream home. These auctions are, of course, designed to secure the highest possible bid. So it stands to reason that a reverse auction is designed to achieve the exact opposite: the lowest possible bid.

When there’s competitive friction, the customer always wins.

Energy Action is an independent energy partner for over 7,000 clients; a pioneer in reverse energy auctions. For over 20 years, we’ve used our smart technology and data-led insights to drive down prices and deliver substantial energy cost savings for businesses across Australia and beyond. As in any other area of business, competition is the core driver of price. So how does a reverse auction work? Here’s a quick overview.

1. Competing on a level playing field.

To ensure we’re comparing apples with apples, Energy Action first gathers your organisation’s energy data and information – across all your sites if you have multiple NMIs – to ensure the bidding retailers know precisely what your energy needs are. It’s so much easier, faster and less time consuming that sending out traditional RFPs.

2. Prepping the bidders.

Before your auction day, retailers are invited to register their interest. We ask those that do to prepare a “bidding plan”. Through this, they can see the prices they have to beat on auction day – a great incentive for them to go lower. Invariably, a range of energy retailers will bid, and may include well-known brands such as AGL, Energy Australia, Origin Energy and Shell Energy.  

3. Reducing energy bills in 10 minutes.

Reverse auctions are fast – just 10 minutes, in fact. (The only exception being if a bid is received in the final 3 minutes, which triggers an extra 5 minutes.) The great thing is, you get to watch live as the energy retailers bid for your business. On average, we usually see a 20% decrease between the first and final bids.

4. Future-proofing energy costs.

Reverse auctions provide energy quotes across different timescales. Usually 24 or 36 months, but it can be as much as 48 months, depending on our specialist’s recommendation. As Energy Action has a complete and up-to-the-minute view of the market, the timing of your auction can be driven by our energy professional’s expert advice. Whatever the auction outcome, locking-in your energy costs over the long-term will be invaluable to your bottom line.

5. Making the decision.

When the auction has concluded we’ll prepare a detailed comparison report for you. The report will contain pricing and commercial information, and a recommendation from our Account Manager. Ultimately though, the choice of energy retailer is down to you. Once you’ve made your choice we’ll help you to transfer to your new retailer.

Smarter, faster and more price-competitive, a reverse energy auction gives your organisation the opportunity to substantially reduce your energy costs and lock-in long-term pricing. That can only be good for business.

Government Grants to Make Businesses More Energy Efficient

The Federal Government is running two grant programs to help businesses fund projects that will make them more energy efficient under it's Energy Efficient Communities Program. The High Energy User Scheme, closing on 24 September 2020 offers grants of $10,000 to $25,000 to businesses consuming more than net 0.05Pj annually. The Small Business Grant, offers grants of $5,000 to $20,000 to businesses with an annual turnover of less than $10 million and closes on 26 August 2020.


High Energy User Scheme

Download our Fact Sheet - High Energy User Business Grant (HEUB)

The estimated $14.8 million scheme will be allocated across states and territories proportionate to the distribution of high energy using business nationally. To be eligible for the $10,000 to $25,000 grant, you must consume more than net 0.05Pj annually, have an Australian business number (ABN) and be a company incorporated in Australia, a co-operative, or an incorporated trustee on behalf of a trust. The grant covers half of the project’s cost, with businesses responsible for the balance.

Eligible projects encompass:

*The maximum project period is 18 months.

Information on the application process, including links to forms, can be found here.


Small Business Scheme

Download our Fact Sheet - Small Business Grant (SBG)

Individual grants of $5,000 to $20,000, worth around $9 million in total, are available to businesses with an annual turnover of less than $10 million, based on Business Activity Statements from the previous 12 months. A maximum of three projects will be funded per federal electoral division. Grants will be based on meeting eligibility criteria, plus submission time and date, noting the scheme closes 5pm Wednesday 26 August. To be eligible, you must have an ABN and be a company incorporated in Australia, a co-operative, a partnership or a sole trade.

Like the high energy user scheme outlined above, the grants are for energy use and emissions monitoring, energy audits, equipment and component improvements, feasibility, and have a maximum project period of 18 months. The small business scheme grants cover the entire project cost.

Details on eligibility criteria and the application process, with links to forms, can be found here.

We have more information about grants that have been made available on our COVID-19 overview page.

If you have any questions about eligible projects or need help with your application, please get in touch with us. 

The Costs and Risks of Reducing Wholesale Electricity Prices

Forecast wholesale electricity prices for the next few years are currently below $40 per MWh in all eastern states excluding NSW.  These are 35 to 50 per cent reductions from prices just a year ago and at levels not seen since before 2006.  At the same time, renewable electricity certificate prices are also at low levels and are forecast to continue to reduce.

The price reductions have been driven by a combination of factors:

There are clearly significant benefits to customers and energy users from reduced wholesale electricity prices flowing through to reduced retail prices.

Rapid and sustained reductions in wholesale electricity prices also presents some costs and risks.

Asset impairment and PPA contract value impacts

In early February 2021 AGL Energy announced that it intends to recognise a significant non-cash write down or cost in its financial statements for the period ending 31 December 2021.

AGL announced a $2.69 billion (post tax) or $3.55 billion (pre-tax) write down from a combination of:

AGL’s announcement did not amend their expected profit guidance for the current year as it had already reduced its profit guidance prior to Christmas 2020.

At roughly the same time in early February 2021, Origin Energy announced a downgrade in its full year profit guidance by 8.6 per cent or $150 million.  This was again largely driven by reduced wholesale electricity prices.

Other retailers, generators and long term offtake renewable energy offtake purchasers are also likely to be impacted by the fall in wholesale electricity prices.  For example, the Queensland Audit Office released a report which estimates at least a $1 billion reduction in the value of the state government owned coal and gas generators due to lower prices.


Uncertain generation exit

The writedown of several large coal and gas related generation assets due to the market outlook for sustained low wholesale electricity prices does increase uncertainty for investors and the market.

The current short to medium term expected environment naturally increases pressure on the financial viability of existing generation in the market and may prompt some investors to either change (reduce) the operating regime for these plants or alternatively seek permissible options for an early exit.  Generation owners seeking an early exit will need to be cognisant of the regulatory requirements that require a process and minimum notice period for closure.  These are intended to mitigate the market from an untimely exit of large scale generation as occurred in early 2017 with Hazelwood.


Reduced attractiveness of new generation investment

The current outlook for sustained low wholesale electricity and renewable certificate prices adversely impacts the payback and return on investment for new renewable generation, this includes technologies such as rooftop solar, grid scale solar, wind and even batteries.

Many stakeholders in the market suggest that some form of financial assistance will be required to adequately address the reduced returns for investors of new generation.  This is likely to be in the form of government contracts such as those recently announced by the NSW government with their Electricity Infrastructure Investment Safeguard or the Victorian government’s renewable energy auctions.


Conclusions

The reduced wholesale prices do have clear benefits, but those benefits also come with costs and risks that will impact not only generation investors but also some end users.

If you have any questions or need advice on the investing in renewable energy please contact your Energy Action account manager.

How to Make the Most of Falling Electricity Prices

With wholesale electricity prices likely to remain lower for longer, it makes sense to procure flexibly to take advantage of expected future price falls.

Corporate renewable power purchase agreements (PPAs) have become immensely popular in recent years. They have become a common way for corporates of varying size to manage their power procurement and to meet RE100 or net zero emissions targets. On the flip side, PPAs support the investment in large-scale renewable energy infrastructure that Australia needs to transition to a lower carbon future.

 

Since 2017, 88 renewable PPAs (excluding those made confidentially) have been signed. They directly contract more than 3.4GW of power and underpin the construction of almost 9GW of wind and solar generation. Last year alone, 26 agreements, contracting 1.6GW of renewable energy, were signed.[1]

 

Beware of the risks

PPAs are complex, and several risks must be managed. In 2018, for example, we noted that while forward contracts signalled to declining wholesale electricity prices for the next three years, long-term PPAs were being offered based on the much higher prices, than prevailing.

 

It was a prescient warning. With renewable energy generation surging amid demand softened by mild weather and the COVID-19 pandemic, prices are in line with 10-year lows for some states and expected to remain low in the near term.

 

AGL recently reported it is a high-profile casualty of locking in long term high price renewable energy contracts. In February, it announced a $1.9 billion pre-tax loss relating to provisions on “onerous” long tenor contracts it made between 2006 and 2012 to support wind farms.

 

Flexible alternatives

The point is that otherwise stable companies could come under significant financial pressure if they lock themselves into long-dated PPAs at the wrong time, and lose the ability to benefit from long-term declines in electricity prices. They may lose competitiveness due to having higher input costs than industry peers.

Energy Action provides flexibility by making it easy for business energy buyers in Australia to access the energy market on their terms. Along with information resources such as our energy advisor team and our Price Index to help you pick the right time to buy and the right contract structure for your business, our online reverse auction drives the market down to deliver the best energy price on the day.  

Apart from exploring self-generation options, companies can consider progressive pricing agreements. Progressive procurement provides greater flexibility to purchase in quarterly blocks to take advantage of market price movements. For clients with a need to manage the risk of energy contracting more proactively, our progressive procurement bureau service allows them to ride the price curve down in a declining energy market,  and to quickly take a measured approach when we see volatility or trends in an upward direction.  Our expert advisory and energy trading staff can assist by offering quarterly market updates and recommendations on when and how much to purchase.

 

For on-site generation solutions, we offer solar auctions and microgrid partner services. Our tech models your optimal on-site solar system in minutes. Then we quality review your requirements with you before going to market to your preferred shortlist of qualified suppliers to bid down the price of your project or service contract. You can choose from a contract for an outright purchase, a finance offer, or a lease agreement.

 

To deliver your drive to Net Zero, we provide a range of auction and wholesale services to access specific solar projects on a short term basis or access even more flexible and transparent pricing via access to the wholesale certificate markets or Greenpower.

 



[1] https://businessrenewables.org.au/demand-for-corporate-ppas-rockets-ahead-in-2020-but-what-comes-next/

 

How Electric Vehicles can Speed up Your Net Zero Plans

Businesses have long been interested in sustainability and spoken of their commitment to renewable energy. More recently, there has been an increase in clients establishing quite precise, science-based targets for net zero emissions by 2050. That’s because a range of stakeholders are asking for details around the calculation of their targets and the steps being taken to achieve them.

Another source of emissions

Using renewable energy for your business’ electricity needs is an obvious way to reduce emissions. It isn’t the only path though. Transport – road, rail, domestic aviation and domestic shipping – is Australia’s third-largest greenhouse gas emissions source, accounting for more than 18% of annual emissions.

Australia’s per capita transport emissions are 45% above the OECD average. This reflects the use of cars with high emissions (Australia is the only country in the OECD that hasn’t mandated emissions standards for cars/heavy vehicles) and over-reliance on road freight.

Your opportunity – electric vehicles 

Electric vehicles can allow companies to reduce their fuel costs and meet their net zero emissions targets. Electric vehicles can eliminate emissions if charged using renewable energy.

Yet as of June 2020, electric vehicles only made up 0.2% of Australia’s total vehicle fleet (versus 11% in Norway, almost 2% in the Netherlands and 1% in China). In a survey of 177 organisations published by the Australian Fleet Management Association, only a third of respondents operated electric vehicles in their fleet, and these represented just 3% of the survey’s fleet size in both the car and SUV categories.

Realising the electric vehicle opportunity

Our approach to net zero emission plans starts with goal setting. An important part of setting goals is identifying targets for scope 1, scope 2 and scope 3 emissions. Transport typically falls into our clients’ scope 1 emissions, while electricity purchases are reported as scope 2 emissions. You can download a copy of our interactive Net Zero plan here.

One thing to be aware of when incorporating electric vehicles into net zero emission plans is how on-site charging of the vehicles impacts your energy demand profile. This will inform demand decisions and influence the interplay between renewables and traditional energy sources. Should a business be powering a more extensive electric vehicle fleet, demand for energy can go up considerably, leading to higher electricity rates in the future. Therefore, this change in energy demand must be carefully navigated.

The next step can be as simple as committing to migrating the fleet to electric as each vehicle comes due for renewal. Businesses don’t necessarily need to be completely off-the-grid and self-sufficient in electricity generation to overhaul their fleet to electric vehicles. If deciding to do so, do keep in mind the impact of vehicle charging on your energy demand profile. This is an area where we can provide support.

If you need assistance in developing and implementing your plans to achieve net zero emissions, please contact us on 1300 964 589 or contact your accounts manager.