Many Businesses are asking themselves if only I had locked in my rates!?
It has been an unbelievable 24 months across Australia with no state escaping the pain of rising electricity costs. Victoria has been hit the hardest with increases of up to 161% in the wholesale cost of electricity.
It’s surprising how many businesses wait until the last hour - or just days from their contract expiring before they get pricing. The problem with doing this is that it could be costing the business thousands of dollars.
If they had gone out for pricing 6 -12 month earlier how much better off would they be?
For example, we locked in energy rates for a college in the East of Melbourne over 12 months before their energy contract was to expire, which saved them 60% on their energy rates. They secured a 5-cent peak rate and by the time their contract started, schools were locking in 12 cent rates. The savings equate to around $160,000 over 2 years.
Did you know you could go out for pricing up to 18 months out of your contract expiring? What will the next 24 months look like?
In November, Victoria had a heatwave that broke records and sent the spot price skyrocketing. We are constantly breaking weather records which will continue to put pressure on peak demands. With Hazelwood no longer in operation, Victoria alone has gone from a net exporter to a net importer. Heading into 2018, South Australia is tipped to be in for its toughest year yet, notwithstanding Jay Weatherill’s crush on Elon Musk.
Are you going to wait for pricing to come down? It could be time to speak with an expert, it's free and could save your business thousands.