5 Energy Budgeting Tips ahead of EOFY

As we approach the end of the financial year, it’s crucial that your business takes the time to plan and budget for your energy costs. As the energy market often experiences volatility, staying on top of your budget will give you the confidence to make informed decisions for your business. Our energy experts share these five key tips to streamline your budgeting process.

✔️ Keep track of your usage

Understand your historical and future energy consumption. Often, customers will ask us to review a sudden spike in their energy charges and we notice a large increase in their consumption. Regularly monitoring your usage can help you identify any changes and avoid bill-shock.

✔️ Track your spend against a budget

Plan ahead with a full energy budget measured against current rates. Keep an eye on your usage against your budget to maintain a clear outlook and to make informed budgeting decisions.

✔️ Stay informed by keeping in touch with your energy specialist

A good energy broker will also keep you updated on energy news and market trends. Getting a handle on the market and understanding how market dynamics impact your energy costs will enable you to anticipate and mitigate potential volatility.

✔️ Factor in inflation and other cost adjustments

Don’t forget to estimate potential adjustments such as CPI increases on the non-contestable elements of your bills (i.e. network costs) as well as other additional charges including environmental/renewable energy charges such as RET, ESS or VEET.

✔️ Explore energy efficiency opportunities

Budget time is the perfect opportunity to explore potential cost savings from implementing solar or other energy efficiency projects into your business. Investigate the feasibility and include any potential savings in your budget discussions.

Is your business budget-ready for the next financial year?

By implementing these five tips, your business can proactively manage your energy expenses, optimise your energy budget, and mitigate market risk for the upcoming financial year.

To find out more on how our team of energy experts can help your business navigate budget time, chat to our team of experts by filling out our contact form or calling us on (02) 9371 4153.

UPCOMING WEBINAR: To further empower businesses to stay informed and on top of their energy expenses, Sustainable Energy Solutions will be hosting an exclusive webinar on Wednesday 29th May at 11am on Understanding the ins and outs of broker contracts and hidden clauses.

*Disclaimer: This article is general information only and does not constitute financial advice. Electricity and gas commodities are volatile markets and prices vary daily.

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7 Key Points from our Energy Webinar

If you missed out on attending our recent live Energy Procurement Webinar, presented by our panel of energy experts, don’t worry. Our speakers have put together a short recap covering the important discussion points.

1. Engage Key Stakeholders Early

Engage decision makers early. Energy prices move quickly and clients who consistently “get it right” are those that engage their stakeholders early in the process. Start your procurement planning in advance, 12-18 months before your contract is due to expire.

2. No Surprises – Communication is Key

Just like your Account Manager keeps you informed to minimise surprises, those in charge of budgets or signing off on them need notice that your future energy expenditure could rise significantly. For some of our clients, the shift in the market has seen their energy costs more than double, for their 2022-2024 contracts.

3. Energy is a Volatile Market

There are no certainties when it comes to energy costs, given the current global and domestic market drivers (Russia-Ukraine conflict, global demand LNG, Australian black coal in demand o/s, local coal-fired power stations closing) it is likely the cost of energy will continue to be volatile, and therefore require continuous monitoring to recognise and act on any opportunities.

4. Be Ready to Accept A Competitive Offer

In a volatile market where rates are changing rapidly, offers can be valid for a few hours to 4 days. If you have to go through multiple or lengthy sign-offs then you may miss out on the best offer. Boards and key partners need to understand you have a short window to secure your contract and you need to be agile in this market.

5. Know Your Options

There is more than one way to procure energy. Traditional procurement, PPAs, Blend & Extend and Progressive Purchasing are a few of the options available. Discuss your options with an expert.

6. Understand Your Bills

Your electricity bills are made up of many components and many factors affect these charges. As an energy user, the portion of these invoices that is within your control is the Energy Charges component of the bill, by working with an energy consultant to negotiate a competitive rate for the contracted period.

7. Reduce Energy Costs In Other Ways

Take a holistic approach to your business’s energy costs and conduct an energy audit. This will take into consideration: how you use energy, ways to reduce consumption, improving efficiency and generating your own energy by investing in solar.

Need assistance with your energy challenges?

Engage energy experts.

At Sustainable Energy Solutions, we work with clients as an extension of their team. We take the time to understand the nature of the energy portfolio, goals and drivers. These may include short term or long-term goals, closing or adding sites, reducing emissions or cutting costs.

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For any further information please feel free to email us energy@sustainablees.com.au

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Why you should engage a market expert for energy procurement.

When it comes to energy procurement, there are a few things to take into consideration to make sure you make the right decision. Listen to Yacira Zurita, Account Manager at Sustainable Energy Solutions explains why is so important to engage a market expert.

If you have an electricity or gas contract due for renewal, contact us.

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