Bundled vs. unbundled energy bills - Which one will lead to more savings?

Choice Energy recently assisted a company in the steel industry to transition from unbundled billing to a bundled rate, with projected savings of $150,000 over three years. Without an expert assessment these impressive savings would have remained a blind spot.

Bundled bills -
Less complex, less flexible, more error prone

In most cases SMEs do not see charges, structures and regulations details in their bill. Similar to residential customers, the bundled bill structure is usually simplified and the pricing is more regulated. But items hidden or “bundled” into the rates, usually means the final base rates are more costly compared to the more transparent C&I bills.

The more heavily government regulated SME billing system is usually subject to annual or biannual rate changes, so there is little room for pricing flexibility

Unbundled bills -
Transparent, fixed and lower rates, less errors, support

In larger enterprises, or energy-centric enterprises, where the use of energy is greater and pricing regulation is minimal, business owners want to scrutinise billing statements more closely. The transparency of the unbundled invoice makes it possible for them to view the split in the charges and uncover;

• The billing structure

• Network tariffs

• Market and environmental charges

• Metering charges

Being unbundled, rates are usually less costly. What’s more, educated energy brokers are able to negotiate better rates, secure fixed rates, hedge contracts when the time is right and alert you on price errors. Today it's also possible to enter billing solutions that;

• Supply energy usage monitoring services

• Track usage and errors

• Coordinate ad-hoc checks

• Provide daily support

• Deliver reports regularly

With one in three bills displaying errors running into the hundreds and thousands of dollars, an ‘energy watchdog’ now, more than ever can help to significantly reduce fees, provide some energy cost relief and improve the customer experience.

The switch to solar -
Cheapest form of energy production, government rebates, green

If you are a daytime business with a sizeable roof, cost savings are attainable by switching to solar. Solar provides long-term advantages and, in most cases, immediate power cost savings. Investing in solar provides access to government rebates, minimises operational costs, reduces a company's carbon footprint, and prepares it for the future.