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Forward contracting: How this little known technique could save you thousands

Thinking ahead is how you became a leader in your industry. You apply it to all kinds of decisions you make each day, from rostering staff to operations and everything in between, to ensure your business moves smoothly and at its best. So why not apply this to reducing your energy bills too?

Forward contracting is the agreement between a buyer and a seller to trade an asset at a future date, usually in context to property or machinery. But what many do not know is that this act can also be applied to your energy agreements, meaning you can take advantage of the wholesale energy market, even when you are in a current contract. Best of all? It’s incredibly simple to do with Choice Energy.

There’s never been a better time to forward contract

While the pandemic brought about a range of challenges for businesses, one upside was unprecedented lows in the wholesale energy market. Demand changed, as businesses were shut or distributing their workforce across households rather than central to one site, bringing prices down to levels unseen in the past 5 years. While the country recovers, so do these costs - if you’re looking to save, you’ll need to act fast and talk to us about a forward contract as soon as possible.

Mercure Kangaroo Island is projected to save over $39,300 thanks to forward contracting. Read the full case study here.

Know whats coming, in a market that is renowned for its volatility

It may come at no surprise to you, to learn that Australia is one of the most expensive countries in the world when it comes to the cost of electricity. And while market fluctuations happen, this fact is unlikely to change any time soon. Future events, such as the planned closures of coal powered plants across Victoria and New South Wales, as well as the politicising of energy resources and decisions, means a new way forward for the country in terms of affordability isn’t anticipated any time soon - and if 2020 has taught us anything, expecting the unexpected is never a bad idea either!

When you forward contract your energy bills, you’re locking in a rate for a set period of time, giving you peace of mind and surety when it comes to anticipating your expenditure. In a market anticipated to rise back to pre-covid levels, we’ve assisted multiple businesses with new agreements that on average are seeing a 40% reduction on cost, in comparison to their current contracts.

Forward contracting can be combined with other services and opportunities to create a holistic energy solution for you, with many of these services cash flow friendly, or at no cost to you.

Choice Energy make it simple to organise your energy forward contracting

Choice Energy has empowered over 3,400 businesses across Australia and New Zealand to optimise energy use and spend without busy owners or managers needing to lift a finger. Our energy procurement service not only looks at what opportunities the market presents for lowering your bills, but also puts your business out to tender in front of over a dozen of the best energy providers across Australia. That way, you’re getting the best of both worlds: A reflection of a market opportunity AND a competitive offer from a provider.

Best of all, Choice energy procurement is at no cost to you. As an independent organisation, we gain equal benefit from all providers, meaning our interests are with you and your business, ensuring our advice comes with your best intentions at the front and centre.

If you’re seeking transparent expertise when it comes to lowering your business energy bills, it’s time to speak to us. Call direct on 1300 304 448 or use the contact form below to get started, and see what you could save.

Take back control of your energy

Speak to one of our Choice Energy Assessors for a free energy evaluation today!

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