6 Ways To Save On Business Electricity Rates In 2022
With energy prices on the rise, it is becoming extremely difficult to manage your business electricity. Every business is different and has different energy needs. However, there is still a lot your business can improve by comparing and analysing your options. If you’re looking to have a better control of how much your business is spending on commercial electricity in order to save on energy rates, here are 6 things you can consider:
- Compare energy rates in your area
- Consider what is a good deal
- Swap retailers
- Read and understand your bills
- Swap to renewables
- Get an energy broker
1. Compare Electricity Rates In Your Area
Commercial energy prices change constantly so you should at least compare electricity rates once a year. In the past year, fossil fuel prices have more than quadrupled in price. This makes it increasingly important to monitor how your energy provider and other providers respond to this. You can also contact your current energy retailer annually to see if they have better rate offers that are better suited for your electricity use.
2. Consider What Is A Good Electricity Deal
When comparing business electricity rates you need to take into account your individual usage of energy and evaluate your electricity usage. Some business electricity retailers will charge for high demand periods of time during the day (e.g., 3pm – 9pm) or for having a very high demand of energy. So, for businesses with high demand for energy, some deals for smaller demands might not be suitable.
Always check the conditions of any discounts. Often discounts will have strict payment deadlines with harsh penalties. Some discounts only apply to the usage fee, not the supply charge.
3. Swap Electricity Retailers
If you find a better deal for your business don’t be scared to swap. However, always keep in mind the condition of termination of your previous PPA and any penalties for under delivering and early terminations.
This is perhaps the most obvious suggestion in the list, but is one that business owners tend to neglect due to time restraints. Step 1 when you’re concerned about business electricity prices is to keep your eyes peeled.
4. Read And Understand Your Electrical Bills
You can get an energy audit from your business electricity retailer which they usually provide for free. This will help you understand where you’re using most of your energy and where you can cut on energy costs. For example, seeing if you might have any leaks or if you need more efficient lighting or insulation.
If you’re struggling to read your bill, most electricity retailers provide you with a guide on how to do so on their website. Electricity brokers can also provide you with an initial free consultation on your electrical bill.
5. Swap To Renewables
Renewable energy efficiency is rapidly increasing with falling costs contrasting falling fossil fuel and gas prices. It is also a great opportunity for your business to meet carbon emission reduction targets!
The Australian Government also has initiatives and incentives in place to support the usage of renewables by businesses which would aid reducing electricity bill costs.
6. Get An Energy Broker
Electricity brokers have all the industry knowledge about commercial energy and market trends. They can help you find the best suited plan for your particular situation. This not only includes a cheaper contract, but also negotiate better terms and conditions.
Analysing and comparing options in relation to your business electricity needs can be very beneficial. However, business electrical rates and plans can be complicated to read and manage.
When managing large electricity contracts, you will require specialist knowledge for energy procurement. Power Maintenance brings strategic, responsive, and tactical assistance on managing your business electricity plan.