Read our latest article by Nick Johnson, Head of Account Management, as he outlines tips to keep track of consumption and avoid penalties – for those businesses with large market gas contracts.
How can your business keep track of your gas consumption and avoid penalties?
With gas prices rising significantly over the past 12 months so have contract penalties. Retailers have provided a range of tools to enable large gas users to monitor their consumption against their contracted volume and avoid penalties.
However, the responsibility then lies with the end user to ensure that they meet their contract obligations.
Here are our top tips to keep track of your business’s consumption and avoid penalties:
✔️ Review your gas bill each month
Most bills contain a combination of tables and charts that illustrate your gas usage by month / contract year to date against contracted volume. It is essential that a decision-maker / facilities manager is checking this information each month and tracking against contracted volume. We are seeing that gas bills are too often left to an accounts team to pay who are not involved in the contract negotiations and by the time a decision-maker is made aware of any issues, it is often too late.
✔️ Find out if your retailer has an online portal
Most retailers have an online portal that allows you to download specific daily data (usually 30 days in arrears) to enable you to check your gas usage in more detail. This data will enable you to make decisions about your future period’s consumption.
✔️ Install real-time monitoring equipment
Real time monitoring equipment is available at a cost from third party suppliers in the market. If you need more certainty regarding your daily usage and want to proactively avoid a penalty, then this is the best option to give you control on site.
✔️ Contract variation ahead of time
Some retailers will allow a contract variation; however, this needs to take place 3-6 months before your anniversary date and will often require documentation outlining the reason for the change in forecast. More often than not, these discussions are taking place too late making it difficult to avoid a penalty.
By staying informed and ahead of gas market developments and contract complexities, you can effectively manage costs and avoid penalties, ensuring a stable energy future for your business.
📢 For more information download our Gas Limit and Penalty Guide Factsheet – click here
AND register for our next Webinar: Understanding Large Market Gas Contracts – click here for details.
To discuss your business’s gas needs or future contracts, chat to our team of experts 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.
