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.
Contact Blue NRG to get your network tariff health check.