Energy Action today launched ‘Energy Bill-Buster’, a group energy buying initiative that will see Australian small business energy buyers band together to get a better deal on their power bill and take advantage of lower energy prices.
As part of the initiative, Energy Action will help SMEs form buying groups based on their location and usage volume. The group’s bundled energy requirements then form a single tender that can attract substantial discounts associated with purchasing energy at greater scale. Energy Action then submits the group tender to a panel of leading retailers.
To participate, SMEs need only register and send Energy Action a copy of their latest energy bill. Energy Action will then aggregate the group’s data, actively negotiate with the energy retailers and notify participating businesses of their final obligation-free offer.
The initiative is also being launched at a time when wholesale energy prices are starting to rise again following a sharp decline since February 2020 as lockdown restrictions were imposed. Energy Action believes that SMEs have an opportunity to reset their existing contracts to take advantage of attractive market pricing before an uplift in demand drives prices higher.
Energy Action’s Chief Executive Officer, John Huggart, said: “With many SMEs facing cost pressures amid continuing economic uncertainty, we continue to look for innovative ways to help them drive energy costs down.”
“Larger-scale groups are in a position to negotiate better energy prices than may be achieved by dealing directly with a retailer or brokers who offer a deal for each individual business. We want to offer that benefit to smaller customers by harnessing their power to achieve greater scale and negotiate better deals on their behalf. Retailers can win more clients and grow their market share with less demand on their resourcing.”
The ‘Energy Bill-Buster’ initiative follows the success of our ‘Auction Blitz’ campaigns which engaged over 85 businesses to take action to lower their energy rates. Energy Action's reverse auction platform, the Australian Energy Exchange, was then used to successfully negotiate a total estimated annual consumption of more than 22 GWh through the program - maximising competitive tension amongst retailers to drive prices down further.
Energy Action’s Head of Trading & Pricing, Scott Easton, added: “We have seen energy prices continue to decline since the onset of COVID-19 in February this year, however, that’s starting to change as social restrictions ease and businesses re-open. That means businesses should be looking to lock in these favourable market movements now, before it’s too late.”
“We are seeing forward contract pricing across the National Electricity Market (NEM) start to consolidate and, while the trajectory from here is unknown, we believe that could be signalling the end of the recent market downtrend.”
More information on the Energy Bill-Buster initiative and how to register is available at Energy Action.