|Choosing the right retailer could knock
thousands off your power bill.
Only one retailer is cheapest. Sometimes significantly so.
We had a client who used us to find the best deal for their multiple sites a few years ago. We ran a tender for them, and found that they were on the most expensive retailer that there was. So we helped them switch to the cheapest, for a three year contract.
Fast forward three years, and their contract was coming to an end. They were tempted to just roll over their contract with their retailer – after all, that retailer was cheapest back when they signed up. But they decided to check with us first.
It’s just as well they did. They were surprised to find that their formerly cheap retailer was today among the most expensive. Had they made the mistake of simply rolling over their contracts, they would have lost tens of thousands of dollars across their 3 sites…per year.
Do I need a fixed-term energy contract?
It’s probably a good idea. For example, we had another client who acquired some new sites. Our client had put two of these sites on un-contracted pricing with their retailer until they got around to working out which retailer was cheapest. One year later, and those sites were still sitting on those un-contracted rates. Those rates were a good 20% higher than the contracted rates they could have been using. Ouch!
Why is it so hard to compare rates?
Some retailers include GST and electricity levies in the rates they give you. Some don’t. Some include a prompt payment discount. And some don’t. So working out the final cost across multiple retailers can be tricky.
What’s more, if you have Time-Of-Use pricing then each offer from each retailer will have up to 144 different numbers for each year of the contract. You’ll have to match these 144 tariffs against your actual half-hourly consumption data for your last year to work out which is cheapest. That’s another 17,520 numbers…not for the fainthearted!
Should I pay someone to run a tender?
If you’ve got an analytical genius on your staff, with time on their hands, then probably not. But otherwise, it’s probably a wise choice: comparing pricing offers for just one site across retailers can be very challenging. Multiple sites can be a nightmare. And there could be tens of thousands of dollars at stake.
|Make energy retailers compete for your business.
Talk to us on 0508 332 474 and we’ll help.