There are only two ways to reduce energy costs: reduce the prices you pay for your energy, or reduce the energy you consume.
Getting energy procurement right is the key to reducing the prices you pay. But it can be a complex and somewhat daunting process. The key to reducing energy prices is to be a smarter player in the competitive energy markets. Despite rising energy costs, there is increasing competition to supply you with energy.
The Energy Exchange is designed for large electricity consumers, typically spending more than $75,000 per annum across their sites, or with many sites. The Energy Exchange is the better way to contract energy.
This is best practice for getting the best deals on electricity or gas:
- Assemble your data – you'll need details of all sites that are to be put out to market, including the ICP numbers* and addresses, existing electricity or gas retailer and consumption data
- Create a Request for Proposals (RFP) that will appeal to retailers – it must clearly set out your requirements, timing and site details
- Go to market – issue your RFP to all retailers that may make offers.
- Evaluate the offers - combine the offers with your site consumption data to create an accurate estimate of what each offer will cost you over the life of the contract term offered
- Make your selection of retailer(s)
- Check the terms and conditions of the contract(s) provided by your selected retailers
- Switch retailers and sign contracts
* ICP number is the unique identifier shown on each electricity or gas invoice, e.g. 0000568188WTEDC. The ICP number identifies each site for retailers and is used in the process of switching retailers.
The Energy Exchange steps you through this process, with support from Energy Link when you need it. Energy Link or your energy consultant can also put your RFP or Auction through the Energy Exchange on your behalf.
Here are some tips if you do it yourself:
- Timing is key – give yourself plenty of time to get new contracts in place. DON'T LEAVE IT TO THE LAST MINUTE!
- Follow up after switching retailers or pricing plans (post RFP): check all your sites transfer to the new retailers on the correct contract rates
- Once in place, manage your energy contracts by checking invoices for errors and anomalies