Energy bills are one of the biggest contributors to many businesses overheads but there are some very basic things that all service station operators can do to help reduce electricity costs, including ensuring that you are on the right network tariff.
What’s a network tariff?
Network tariffs are regulated pricing set by the electricity distributor in your area, they can account for up to 60% of your electricity bill. These prices go toward the cost of substations, poles, and wires that supply your business and home with electricity.
To understand how these charges are passed through we need to look at your electricity bill. There are two types of electricity bills, bundled and unbundled. If your business is on a bundled rate the energy, network and market charges are rolled into two, simple to read charges: energy and supply. However, if your business is on an unbundled bill you will be able to easily identify the network tariff charges because they will be listed as separate line items.
How much can my business save?
If your network tariff can be optimized to reflect your business consumption you may be able to save thousands per year off your electricity bill. Keep in mind that in some instances, a business will already be on the best network tariff.
“Over time a business will change its power profile though simple operational changes such as improved refrigeration or upgrading to LED lighting and installing Solar,” comments John Hicks, Large Market Account Manager of Blue NRG.
“These energy-efficient improvements will help your business use less power which should result in a reduction in your bill. These improvements might mean that your business is no longer on the best network tariff, which means that you’re paying too much for network costs.”
How do I know my business is on the right network tariff?
Deciphering the optimal tariff can be hard but many third-party energy consultants will check your network tariff for a fee.
ACAPMA has partnered with Blue NRG a B2B electricity retailer to offer assistance to its members and the wider community. Blue NRG have competitive rates and offer free energy health checks to their customers.
