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Maximise Energy Savings with Retailer Contracts

energy savings with retailer contracts

Retailer contracts are agreements between energy suppliers and businesses that outline the terms, rates, and conditions for providing electricity or gas, ensuring stable and cost-effective energy supply.

Key takeaways

  • Understanding Retailer Contracts: These agreements outline terms for energy supply, including rate plans, service level agreements, and renewable energy commitments.
  • Cost Efficiency: Retailer contracts can offer fixed or competitive rates, helping businesses manage energy budgets effectively and protect against market volatility.
  • Energy Efficiency Programs: Many contracts include provisions for regular energy audits, energy management tools, and performance reviews to continuously improve energy use.
  • Sustainability Initiatives: Commitments to renewable energy within contracts support environmental goals and enhance corporate reputation.
  • Negotiation and Implementation: Successful leveraging of contracts involves comparing offers, negotiating favourable terms, and implementing continuous monitoring and adjustments.
  • Case Study Example: Company XYZ reduced energy consumption by 15% and energy costs by 20% through an energy retailer contract with Energy Action, including investments in solar panels.

Estimated Reading Time: 8 minutes

Leveraging Retailer Contracts for Energy Savings

In today’s fast-paced world, businesses are always on the lookout for ways to cut costs and boost efficiency. One often-overlooked area is energy consumption. By leveraging retailer contracts, companies can achieve significant energy savings and contribute to a more sustainable future. Here’s how leveraging retailer contracts can help.

Understanding Retailer Contracts

Retailer contracts are agreements between a business and an energy retailer that outline the terms and conditions for energy supply. These contracts are not just about securing energy at competitive rates; they can also include provisions for energy efficiency and sustainability initiatives.

Retailer contracts can be complex, but understanding the key elements can help businesses make informed decisions. Typically, these contracts detail:

  • Rate Plans: The cost of energy can vary based on the time of use, duration of the contract, and the amount of energy consumed. Rate plans might offer fixed rates, which remain constant throughout the contract period, or variable rates, which fluctuate with market conditions. Understanding these options allows businesses to choose the most cost-effective plan.
  • Service Level Agreements (SLAs): These specify the quality and reliability of the energy supply. SLAs often include guarantees for uptime, response times for service issues, and penalties for non-compliance. Ensuring a robust SLA can protect businesses from unexpected disruptions.
  • Energy Efficiency Clauses: Provisions for energy audits, monitoring tools, and regular reviews to identify savings opportunities. These clauses ensure that businesses have access to resources and support to continuously improve their energy efficiency.
  • Renewable Energy Commitments: Agreements to source a percentage of energy from renewable sources. This can include commitments to purchase renewable energy certificates (RECs) or invest in renewable energy projects. These commitments support environmental goals and can also provide cost savings through government incentives.

Benefits of Retailer Contracts for Energy Savings

Retailer contracts offer several key benefits that can help businesses achieve energy savings and enhance sustainability:

Cost Efficiency

Retailer contracts can offer fixed rates or competitive pricing, helping businesses manage their energy budgets more effectively. By locking in rates, companies can protect themselves from market volatility. This stability allows for better financial planning and can result in significant cost savings over time.

Energy Efficiency Programs

Many contracts include energy efficiency programs that provide businesses with tools and resources to reduce energy consumption. These programs can offer valuable insights into energy usage patterns and suggest areas for improvement. Participating in these programs can lead to reduced energy costs and enhanced operational efficiency.

Sustainability Initiatives

Contracts can also include commitments to renewable energy sources and sustainability projects, aligning business operations with environmental goals. This not only reduces carbon footprints but also enhances corporate reputation. Being seen as a sustainable business can attract environmentally-conscious customers and investors, providing a competitive advantage.

How to Leverage Retailer Contracts

To fully leverage retailer contracts for energy savings, businesses should focus on three main strategies: negotiating competitive rates, including energy efficiency clauses, and committing to renewable energy.

1. Negotiate Competitive Rates

The first step to leveraging retailer contracts for energy savings is to negotiate competitive rates. This involves:

  • Comparing Offers: Analyse offers from multiple retailers to find the best rates. This comparison should consider not only the price per unit of energy but also the terms and conditions of each contract.
  • Understanding Peak and Off-Peak Rates: Different rates may apply during different times of the day or year. Understanding these can help optimise energy usage. For example, businesses can schedule high-energy activities during off-peak hours to take advantage of lower rates.
  • Securing Long-Term Rates: Lock in rates for a longer period to avoid price hikes and ensure budget stability. Long-term contracts can provide financial predictability and protect against market fluctuations.
ComparisonCompare offers from different retailers.
Rate AnalysisUnderstand peak and off-peak rates to optimise energy usage.
Long-Term RatesSecure long-term rates to avoid market volatility.

2. Include Energy Efficiency Clauses

Including energy efficiency clauses in your retailer contracts is crucial for maximising energy savings. Ensure that your contract includes:

  • Energy Audits: Regular audits to assess and improve energy efficiency. These audits can identify inefficiencies and suggest improvements, helping businesses reduce energy consumption and costs.
  • Energy Management Tools: Access to tools that monitor and manage energy usage. These tools can provide real-time data and analytics, enabling businesses to make informed decisions about their energy use.
  • Performance Reviews: Regular reviews to track energy consumption and identify areas for improvement. These reviews ensure that energy efficiency measures are effective and that new opportunities for savings are continuously identified.

These clauses not only help in reducing energy consumption but also provide a structured approach to managing energy use.

Energy AuditsRegular assessments to improve efficiency.
Management ToolsTools for monitoring and managing energy usage.
Performance ReviewsRegular tracking to identify savings opportunities.

3. Commit to Renewable Energy

Incorporating renewable energy commitments into your retailer contracts can drive significant savings and sustainability benefits. This can include:

  • Purchasing Renewable Energy: Commit to buying a percentage of your energy from renewable sources. This not only supports the renewable energy market but can also provide cost benefits through government incentives. Additionally, purchasing renewable energy can reduce the company’s carbon footprint, contributing to environmental goals.
  • Investing in On-Site Renewables: Consider installing solar panels or wind turbines on-site to generate your own renewable energy. This reduces reliance on external energy sources and can significantly cut costs. On-site renewables can also provide a reliable energy source and further enhance sustainability credentials.
Renewable CommitmentDescription
Purchase Renewable EnergyCommit to buying a percentage of energy from renewable sources.
On-Site RenewablesInvest in solar panels or wind turbines to generate own energy.

Practical Steps for Businesses

Implementing retailer contracts effectively involves several practical steps. Here’s a detailed roadmap for businesses looking to leverage these contracts for energy savings:


Conducting a thorough energy audit is the first and most crucial step. An energy audit involves a comprehensive review of your current energy usage, identifying patterns, and pinpointing inefficiencies. This audit should cover all aspects of energy consumption, including heating, cooling, lighting, and machinery.

Steps in Energy Audit:

  1. Data Collection: Gather data on energy consumption from utility bills, metre readings, and energy management systems.
  2. Site Inspection: Perform physical inspections of the premises to identify areas of high energy usage and potential inefficiencies.
  3. Analysis: Use software tools to analyse the collected data and identify trends and anomalies.
  4. Reporting: Create a detailed report highlighting key findings and recommending actionable improvements.


Once you have a clear understanding of your energy usage, the next step is to compare offers from multiple energy retailers. This process involves evaluating different retailers based on several criteria to ensure you select the most competitive and beneficial contract.

Factors to Consider:

  1. Rate Plans: Compare fixed and variable rate plans to see which offers the best cost savings.
  2. Contract Terms: Look at the length of the contract and any early termination fees.
  3. Additional Services: Some retailers offer additional services like energy audits, monitoring tools, and sustainability programs.
  4. Reputation and Customer Service: Research the retailer’s reputation for reliability and customer service quality.


Negotiating the terms of the contract is a critical step to ensure you get the best deal. This involves discussing various aspects of the contract to include favourable rates, energy efficiency clauses, and renewable energy commitments.

Key Negotiation Points:

  1. Rates: Aim to secure the lowest possible rates, whether fixed or variable.
  2. Energy Efficiency Clauses: Ensure the contract includes provisions for regular energy audits, access to energy management tools, and performance reviews.
  3. Renewable Energy Commitments: Negotiate commitments to purchase a certain percentage of energy from renewable sources or to invest in on-site renewable energy projects.
  4. Flexibility: Try to include clauses that allow for flexibility in case your energy needs change over time.


After finalising the contract, the focus shifts to implementation. This involves continuously monitoring your energy usage and making necessary adjustments to optimise consumption.

Implementation Steps:

  1. Monitoring: Use energy management tools provided by the retailer to monitor energy usage in real-time.
  2. Adjustments: Make adjustments based on the data to optimise energy consumption. For example, schedule high-energy activities during off-peak hours.
  3. Regular Reviews: Conduct regular performance reviews to assess the effectiveness of implemented measures and identify new opportunities for savings.
  4. Employee Training: Train employees on energy-saving practices to ensure everyone contributes to energy efficiency goals.

Case Study: Successful Energy Management

Company XYZ serves as a prime example of successful energy management through retailer contracts. They partnered with Energy Action, securing a contract that included competitive rates and comprehensive energy efficiency programs.

Key Outcomes:

  1. Energy Consumption Reduction: Over the span of a year, Company XYZ managed to reduce its energy consumption by 15%. This was achieved through regular energy audits and the implementation of efficiency measures recommended by Energy Action.
  2. Cost Savings: The reduction in energy consumption translated to a 20% cut in energy costs, providing significant financial relief and improving the company's bottom line.
  3. Sustainability Investments: In addition to the cost savings, Company XYZ invested in solar panels as part of their commitment to renewable energy. This not only further reduced their reliance on external energy sources but also enhanced their sustainability profile, positioning them as a green business leader in their industry.


Leveraging retailer contracts can transform your business's energy management, driving both cost savings and sustainability. With the right approach, businesses can secure competitive rates, reduce energy consumption, and contribute to a greener future. By conducting thorough energy audits, comparing offers, negotiating favourable terms, and effectively implementing the contract, businesses can achieve substantial energy savings.

Explore how Energy Action can help you achieve these goals and more. For more information, visit Energy Action and start your journey towards energy efficiency and sustainability today.


  1. What are retailer contracts? Retailer contracts are agreements between businesses and energy retailers outlining terms for energy supply, often including cost and efficiency measures.
  2. How can retailer contracts save energy? They can include provisions for energy efficiency programs, fixed rates, and renewable energy commitments, all of which contribute to energy savings.
  3. What should be included in a retailer contract? Look for competitive rates, energy efficiency clauses, and commitments to renewable energy sources.
  4. How do I choose the right energy retailer? Compare offers from multiple retailers, consider their energy efficiency programs, and review their sustainability initiatives.
  5. What are the benefits of committing to renewable energy? Benefits include cost savings, reduced carbon footprint, and alignment with environmental goals.

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