It’s possible to make savings on your energy bill by simply renegotiating your energy contract. Here are a few tips to help ensure you are getting the best deal.
Get the data
Start by gathering at least 12 month’s data showing your businesses energy use. If your provider can see the volumes of your peak, off-peak and maximum usage, they’ll be able to let you know if you are on the right offer for your business.
Know your contract
Before you sign a new offer, take the time to understand the terms and conditions attached to it. Are there discounts for paying on time? Are there clauses that make it difficult to change your contract, or is there a minimum spend? If researching new contracts seems overly complicated, an energy broker can talk you through the options.
Get the timing right
Energy prices can change over time, so it’s important to research the market to get a feel for the best times to negotiate or enter into new contracts. You’ll also want to get the length of any new contract right: if energy prices today are cheaper than expected in the future, it may be better to choose a longer contract. If prices are decreasing, a shorter contract may be better, as you may be able to buy energy at a lower price down the track.
Keep an eye on pricing trends
These sources have pricing information:
- The Australian Energy Market Operator (AEMO) features pricing information.
- The ASX website publishes pricing for electricity futures.
- The Australian Energy Regulator publishes daily, weekly and longer-term reports on the performance of wholesale markets and retail markets.
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Examples of businesses that successfully negotiated a better deal Australian Government