In this fact sheet we outline our 3 best tips to reduce energy costs and save on electricity bills

9 out of 10 sites we audit are paying too much for their electricity. Most sites are able to save between 10% and 30% by making simple changes.  In this fact sheet we discuss 3 options for apartment buildings to save money on their electricity bills. An assessment by a qualified energy consultant is required to assess what options are right for your site.

Tip 1. Residential or Business account?

Energy retailers have different rates for residential and business customers. Business accounts typically have lower rates attract greater discounts when moving onto a fixed term contract compared to residential accounts.

Whether or not your apartment building common area electricity should be on a business or residential account depends on a number of factors such as where you site is located, your network provider and whether your site is purely residential or mulit-use with both residential and commercial lots.

“9 out of 10 sites are paying too much for electricity”

For example, lets look at the AusGrid network area in Sydney. In the past the common areas of apartment buildings were typically classified as residential accounts. This has since changed and the electricity accounts for apartment building common areas should now be on a business tariff. While new sites (< 10 years old) were typically assigned a business account there are many older apartment buildings on residential tariffs. These sites may see significant savings by moving onto a business account. Changing from a residential account to a business account can typically be quickly done over the phone at no cost.

Unfortunately for apartment buildings in the Endeavour Energy network (West of Parramatta), your apartment building common area electricity account is classified as a residential account by Endeavour Energy and there is no option to move onto the business account.

 

Tip 2. Move off default tariffs onto a fixed-term contract.

In many areas of Australia there are defauult, regulated electricity tariffs for residential sites and small business sites (that consume < 160 MWh pa). In many areas these smaller sites are able to move off these default tariffs onto a 2 or 3 year fixed term contract with a different electricity retailer and achieve significant savings.

If your site is on the default electricity tariff than you are paying too much for your electricity.

Many retaliers offer savings of 5% to 16% by moving onto a 2 or 3 year contract. However, it is important to read the terms of the contract. Many contracts charge a fee for early termination of the contract, some contracts have late charges and some offer additional discounts for on time payments. Our energy audit can asses what options are right for your site.

We provide energy procurement and energy brokering services. We work with sites to find the best deal for their electricity and natural gas. Whether you are looking for a small market deal or a large market contract we can help.

 

Tip 3. Time of Use metering.

Many apartment buildings have manual read electricity meters. These meters read total energy consumption but not when electricity is consumed. With these meters sites are charged on an all-time (or general supply) tariff. This means that electricity is charged at the saem rate regardless of when electricity is consumed. Electricity rates are typically stepped, meaning the first 1,750kWh or 2,500kWh may be charged at a lower rate then the remaining balance. Some sites may be eligible to move from a general all time consumption tariff to a time of use tariff.

Under a time of use tariff the cost of electriccity changes depending on the time of day and week. There is typically a Peak period (afternoons) at the highest rate, a shoulder period (mornings and evenings) at a mid-price rate and an off-peak period (overnight and on weekend) which has the lowest rate. The electricity consumption of many apartment building common areas is typically eitehr fairly constant regardless of the time of day or day of week. Or, higher during the night when house lighting switches on. Under this energy consumption profile significant savings may be achieved by moving to a time of use tariff.

For most sites moving to a time of use tariff will involve changing the existing electricity meter with a smart meter capable of time of use metering. The installed cost of a smart meter is approximately $450 (however this cost does vary site to site). As there is a cost to upgrading your smart meter it is important to assess your sites pattern of electricity consumption and costs to assess if an upgrade to a time of use metering will be cost effective. Our level 2 energy audit can answer these questions for you.

What if our costs increase under time of use metering? Some sites may be able to simply switch back to a general all time tariff, this varies depending on your retailer. AusGrid allows a customer to switch between general all time and time of use tariff twice at no cost. Other network providers however such as Endeavour Energy do not allow a site with a smart meter capable of ToU metering to move back onto a general supply tariff.