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Four ways your business can save in 2023

Here we are, one full month into the New Year! As we all begin to get back into the swing of things, there is one dark shadow looming from 2022… continued energy price increases.

As we saw throughout 2022, inflation, the aftermath of the COVID-19 lockdowns, the Ukrainian War, and extreme weather events had a direct impact on business energy costs.

While we saw some attempt at Government intervention, and some cooling of the market as a result, commentators have suggested this week businesses will not see a significant reduction in energy prices until 2024 (“Electricity prices will come down – just not yet”, The Australian, 20 January 2022).

Amidst all of the uncertainty - we have always held the same position: Using energy is essential, we get it. Paying unusually high prices is not.

Forward-contracting your next large market contract

If you are a large market business coming out of contract within the next 6-18 months, now is a great time to explore forward contracting with the recent dip in the market. Large market businesses are the most impacted by increases in the National Electricity Market. Through forward contracting, you can secure lower rates now in the dip before further price hikes. See the below graph outlining the current market price trends.

Source: ASX Energy as of 25.01.23

ASX Graph

When you engage Choice Energy procurement we'll review your energy usage and bills, and provide you with a professional insight into the current market. With that, give you some options on how to keep your risk within the market as low as possible.

Review your SME rates yearly

It's a challenging time in the market for SME businesses looking for a competitive deal on energy (electricity or gas). Given the increase to wholesale energy prices last year, many energy suppliers dropped out of the market as it was too expensive for them to accept new customers.

We are seeing more energy retailers come back online which creates more competition and more aggressive business energy rates too.

Loyalty is not rewarded in the energy market typically, so we always encourage you to review your energy contract each year, or better yet, work with an independent energy broker who can do this for you for free. If you haven't reviewed your energy rates recently, get in touch.

Reduce your reliance on the grid

One way to reduce your risk from the volatile wholesale grid is by creating your own solar energy from your roof.

Commercial Solar has never been more feasible for Australian businesses than it is right now, with various rebates, grants and government incentives available to sway you to join the renewable revolution.

Business solar rebates are compelling, helping to offset the costs of the purchase of a commercial solar system.

The limitless Instant Asset Tax Write-Off is a game changer for businesses, helping to offset 100% of the investment. However, in order to benefit from this tax incentive, your commercial solar system must be fully installed and operational by 30 June 2023.

A commercial solar installation with Choice Energy aims to be cash-flow positive from day one for your business, which means you don’t have to come up with a separate budget for solar. You’ll benefit from government funding and utilise the savings the system creates from your post-solar energy bill to pay the finance for the system.

In our experience, 8/10 businesses are paying more for electricity than they would their own solar system. Take the first step in reducing your energy costs, and ask yourself - Is this something you've looked at? And if not, why not?

Speak with our solar team and check the feasibility of commercial solar for your business, get in touch.

Network tariff assessments

If you are a large market client, network tariff and demand charges can add up to more than 60% of the total charges on your energy bill and charges outside the retail portion of your bill.

Network tariff classification and associated charges are negotiable and dependent on how much power your business consumes, how you use power in peak and off-peak times, and what type of business operations you run. This means, if you make any changes to your operational hours or implement more energy-efficient equipment, you'll continue paying the same network tariff.

Retailers typically aren't incentivised to tap you on the shoulder and review this for you. It will appear on your bill each quarter and unless it's checked or challenged, won't be updated on its own.

This is where we come in, our energy consultants can run an assessment of your current tariff to ensure that you are not overpaying on your current contract. For the months of August - January 2023, Choice Energy identified more than $70,000 in energy savings for businesses that undertook a network tariff review. Therefore, it is a win-win, to work with us to see if we can help you save!

Partner with us to avoid over-expensive energy bills in 2023. Let’s start with a simple phone call on 1300 304 448 or you can reach our team here. Through the expected and unexpected of the coming year, we are here to help.

Take back control of your energy

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

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Take power back and reduce your energy costs. Provide us with a snapshot of your business and energy needs and we'll be in touch.