Energy costs form a significant portion of business expenses. This is especially true if you are running a start-up, where increasing energy costs drastically affect your bottom-line and can pose a threat to the very survival of the business.
Energy costs form a significant portion of business expenses. This is especially true if you are running a start-up, where increasing energy costs drastically affect your bottom-line and …
Hence, it is necessary that you take control of your business expenditure to find out just exactly where each cent of utility payments goes, and how you can find the most cost effective utility providers in Australia for your business. The following tips will help you find such utilities management services.
Negotiating with Multiple Providers
July 2014 coincides with the removal of retail price regulation. This means there will be more competition in the electricity market, leading to more choice and downward pressure on electricity prices in Australia. Depending on your property, the new price concessions that follow this ruling can save users 12% to 16% on an average bill of $2,500. The benefit for electricity suppliers, such as reduced spending on infrastructure expenditure and operating costs means lower costs for consumers.
Hence, for every great deal you get from a utility company, there will always be a competitor that can offer something more cost-effective.
Explore Multiple Options
This follows from the previous point. Don’t settle for the first company offers attractive rates without looking at all its options. Usually a utility provider than offer you savings along the line of 5% to 10 %. However, with some diligence, you can get even better discounts as there are always additional savings available, and you can easily lower your energy savings by 20%.
And even if the discount is a mere point something of a cent per kilowatt hour, don’t consider it to be trivial since the collective savings over time can easily run into tens of thousands of dollars with every kw you use.
Also remember that you may have an energy supplier that has worked with your business for a long time, there is no reason not to look beyond the company if another vendor is offering a lower price. In fact, sometimes simply asking your current supplier for a discount, he will most probably oblige since he know that there are several competitors out there.
Calculate your Energy Needs
This is necessary if you want to know how effectively you are spending your resources on energy. Look at your current electricity, phone, gas, and water bills. When it comes to electricity especially, your bills will tell you exactly what you are paying in terms of kw/hour. You can also call in a professional service to do a profile on your company, determine your energy needs, and give you a rating.
Based on that, you can proceed to find a plan that meets these requirements so that you can avoid paying for energy that you don’t need in the first place.
Finally, if you can’t invest in your own panels for the office building, then at least sign a contract with a utility provider that generates electricity from sunlight. This will not only lower your energy bills, but also reduce your carbon footprint.