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

The key to leveraging this opportunity is lifting the hood and getting help to assess if you are in the right price bracket to shift to an unbundled bill. The conversion is mostly case-by-case. Each one be assessed by experts specialising in energy procurement.

Bundled vs. unbundled bills simply explained

If your organisation is a Small and Medium Enterprise (SME), your bill is likely to be bundled. Once your energy consumption reaches a higher rate and charges supersede a certain monthly cost, you could be reclassified under Commercial and Industrial rates (C&I) and receive unbundled bills. The higher the energy consumption, the more you are likely to benefit from C&I billing advantages.

Some advantages of shifting to C&I rates and unbundled billing;

  • Gaining full visibility into the billing items

  • Securing fixed rates

  • Buying energy at wholesale prices

  • Reducing bill shock

  • Reducing costly billing errors

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

Billing bundled electricity sample
Billing bundled electricity sample

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.

Energy bill unbundled fixed rate sample Australia
Energy bill sample of unbundled fixed rate

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.

Want to explore if your business is eligible for transitioning from a bundled to unbundled energy contract?

In the second quarter alone, Choice Energy's team of energy experts secured over $120,000 savings for customers, transitioning them from small to large market agreements.

If you think your bundled bill is reaching sky-high rates and could qualify you for a more competitive unbundled fixed rate, Choice Energy’s energy brokers and solar experts can run through your bill with you obligation free, and let you know if you qualify for more competitive rates, or even a shift to solar.

Find out now

Take back control of your energy

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

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