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Energy Insights

Lowering your energy bill by switching network tariff

In this year’s tariff review, Energy Action has identified total savings among its national business energy client base of more than $2 million across 426 sites. The review was conducted between June and July 2019 across more than 3,000 sites in all states except Victoria, Northern Territory and Western Australia. The single biggest saving from a client switching network tariff was $82,364.27 across multiple sites.

This year’s tariff review and associated cost reduction forms part of the total [$18.4] million in client savings uncovered by Energy Action since 2014.

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 costs.

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, please get in touch with us today.

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