Read our latest article by Nick Johnson, Head of Account Management, as he outlines the common energy issues faced by our clients and our solutions.
Challenged by energy issues?
At Sustainable Energy Solutions, we speak to hundreds of clients across the country to help them secure the best energy deals. Over time, we’ve identified some of the key issues that clients are facing regarding their energy portfolios.
Here we’ve listed 3 common issues and our solutions:
⚠️ 1. Having an inaccurate, incomplete, or fragmented picture of your business’ load profile.
Managing a business’ energy portfolio can be a very complicated and time-consuming task due to multiple sites, suppliers and contracts. Acquiring more sites adds to the complexity especially if existing contracts have varying durations and timelines. This fragmentation is an administrative nightmare.
✔️ Our Account Managers will negotiate with your various retailers to consolidate your contracts and maximise your options when going to market.
⚠️ 2. Being unprepared internally to enter the market and running out of time to secure a competitive offer.
As energy is a volatile commodity, with prices fluctuating from day-to-day and from state to state, a one-size-fits-all approach won’t do, nor will leaving your tendering to the last minute. The later you leave it, the less options and negotiation power you’ll have. Determining when to forward contract is therefore an important strategic decision. Understanding your internal decision-making process before going to market is crucial and will enable your business to take advantage of better market conditions as they arise.
✔️ Our Account Managers encourage our clients to forward plan so together we can act swiftly when opportunities arise.
⚠️ 3. Not understanding the details or specific terms and conditions of your energy contract.
Energy is complicated, and understanding your contract is just one piece of the procurement puzzle. Tenders contain numerous line items that need to be examined within the context of your business’ usage profile. Comparing multiple offers is exponentially difficult, especially with retailers offering varying rate structures or different terms and conditions.
Furthermore, not knowing your contract expiry can lead to havoc, especially if dealing with multiple retailers. Failing to negotiate a new contract with your supplier can result in automatic rollover into default rates, which can be up to three times your current price. Some gas contracts are also inflation-adjusted, with CPI compounding each year, most commonly occurring on January 1st.
✔️ Our Account Managers give one-on-one guidance to make sure our clients are kept up-to-date with their portfolio status and are across all the ins and outs of their contract terms.
Is your business facing energy issues?
Chat to our team of experts if your business wants help controlling your energy costs by filling out our contact form or calling us on (02) 9371 4153.
*Disclaimer: This article is general information only and does not constitute financial advice. Electricity and gas commodities are volatile markets and prices vary daily.
