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