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Why multi-site businesses should consolidate their energy portfolio.
With many of our clients’ growing their businesses through expansion or acquisitions – managing their energy accounts, billing and spend becomes increasingly complex. There’s no doubt that consolidating makes sense but for medium to large scale companies, it’s a timely process and incredibly burdensome for their account’s team. However, consolidating energy accounts is worth the legwork.
Here we’ve listed 3 common multi-site energy portfolio issues and our solutions:
⚠️ 1. Individual sites managing their own billing under varying account names can be an administrative nightmare.
Managing multiple energy contracts with different account names and potentially different energy retailers can be a very complicated and time-consuming task. Having multiple site accounts creates varying unit rates, billing cycles and durations, payment terms and contract conditions.
✔️ Our Account Managers will negotiate with your various retailers to consolidate your contracts under one name. For some of our clients, consolidation has resulted in a single bill for electricity and a single bill for gas.
⚠️ 2. Engaging multiple energy retailers across different sites diminishes your negotiation power and can limit your ability to take advantage of favourable market conditions.
By consolidating your contracts with varying energy retailers, your business could have a larger portfolio and higher overall consumption with a single retailer which could enhance your negotiation leverage and could allow for reduced unit price, better contract terms, and other incentives such as site bundling. This strategy could also reduce your exposure to supplier risk, multiple contract expiry dates and varying terms and conditions. Having a consolidated portfolio with one retailer could also enable your business to bring new sites online under your existing contract via a roll in/out allowance, rather than procuring a new contract with each new site.
✔️ Our Account Managers will consolidate your energy portfolio and maximise your options when going to market.
⚠️ 3. Not understanding your business’s energy consumption can limit your ability to identify cost-saving and energy-efficiency opportunities.
Comparing multiple energy bills across numerous sites can be exponentially difficult and can limit your overall visibility. By consolidating your energy portfolio your business will gain a clear and comprehensive overview of both your consumption rates and costs. When you know the numbers, you are empowering your business to accurately identify and implement cost-saving and energy-efficiency measures. Plus, you’ll have the benefit of improved billing accuracy and budget forecasting.
✔️ Our Account Managers give one-on-one guidance to make sure our clients are implementing cost-saving and energy efficiency measures.
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.
