What is happening in the electricity market?
'Fears of 100pc spike in power cost', 'Big dry may force power outage', 'Home electricity costs
to soar'. These are some of the more recent headlines seen in the newspapers recently.
Sensational headlines of course but the reality is the electricity market has entered a new era
and many Clubs are feeling the brunt of significantly increased electricity bills.
Like any market, there are numerous factors involved behind the price but the recent surge has
been attributed to numerous factors, the main ones being;
Lack of available water for the production of electricity
Increased reliance on green energy
General supply v's demand
Depending on your point of view, each factor may be the most responsible but ultimately there
doesn’t appear to be any short term relief in site. Historical trends, current pricing and future
expectations all point to continued rises.
What does this mean for Clubs?
For many Clubs it is a matter of minimising an increase which can be significant. Due to the
fact that electricity prices are rising and that electricity consumption tends to increase, it is not
uncommon to see increases of over 50% in overall electricity bill costs.
With this in mind, electricity contracts, pricing, timing to market and energy management
measures are becoming more important.
What can be done to help?
Electricity contract: Purely from an electricity contract perspective, getting the right
contract with the best pricing is one aspect, but getting this done at the right time is just
as important. If for example your Clubs electricity supply contract is due to expire at
the end of this year (or even beyond), it is possible to take action many months in advance
to lock down today’s electricity prices for tomorrows energy.
Network charges: Network charges are pass through costs by the local network provider
and are typically the second biggest component of Clubs. Depending on your Clubs physical
location, there can be a number of different types of network tariffs that can be applied.
By getting the right tariff, dollars can be saved.
Energy Management: From an energy management perspective there are different ways to
achieve this depending on your business requirements. It can be as simple as changing light
bulbs or as complex as installing photovoltaic solar cells and/or building management systems.
We do know though that air-conditioning makes up a significant component of overall electricity
consumption at Clubs and this is an area that needs to be monitored closely.
NSW State Manager
Energy Action Pty Ltd
Ph. 02 9891 6911
Mob. 0400 128 871
Fax. 02 9475 0954