Who we helped: Who are Ductmakers?
Ductmakers is a manufacturing company that has produced sheet metal ductwork specifically for the air-conditioning industry for over twenty years. It is also a member of the Southeast Melbourne Manufacturers Alliance. Leading Edge Energy joined SEMMA to help its members negotiate, manage & reduce their energy costs.
(Get to know Ductmakers here.)
How did we help Ductmakers?
Electricity Tenders and Forward Purchasing
Leading Edge Energy’s working relationship with Ductmakers started in 2021 when we conducted a formal tender to market for Ductmakers’ next energy contract where we secured great rates for a fixed 3-year agreement with our partner retailer, Origin Energy.
Due to this contract, Ductmakers was able to completely avoid the 2022 energy crisis where electricity prices increased considerably.
Following the positive outcome of the previous contract, Ductmakers once again signed on for Leading Edge Energy to conduct a tender for their next contract starting January 2025. Secured in 2024, the forward contract was based on wholesale prices of $60/MWh – the lowest price period since 2022. Notably, not too long after, electricity prices went up by more than $15/MWh.
With Leading Edge Energy aiding Ductmakers, the manufacturing company has been contracting below market prices for extended periods, leading to great savings for their business.
(Learn more about energy tenders and forward purchasing here)
Ongoing account management and Network Tariffs
Being a Leading Edge Energy client did not end with Ductmakers getting offers from our partner retailers and signing a contract with a company that matched their requirements.
As a brokerage and energy management consultancy, Leading Edge Energy specialises in electricity network tariffs and, over the years, we have provided businesses with significant savings by analysing the network components of their bills – something most businesses think is impossible.
What did this mean for Ductmakers? As Leading Edge Energy clients, we helped them manage their accounts; finding opportunities for the manufacturer to save on their bills. When they installed a solar energy system, their annual usage drawn from the grid reduced significantly. As Ductmakers’ usage dropped below a certain threshold, we identified an opportunity to change the United Energy network tariff. This had two primary benefits for Ductmakers, namely:
- Overall savings to the total network charges.
- Rebalancing of charges: The high peak demand charges have been removed, whilst the C/Wh usage rate has increased. Thus providing a better return on investment from solar energy.
What Ductmakers says about Leading Edge Energy
“Ewen & the Leading Edge team have helped us manage our energy contracts for a number of years now, driving great savings to the business. They are not a set-and-forget broker, instead, they provide ongoing reporting & account management to help us continue to drive our costs down.
More recently, Ewen reached out to notify us that the new solar system has opened up an opportunity to change our network tariff due to our new and reduced grid usage. Further savings to our bottom line.”
Daryl Davis – General Manager
Are you a SEMMA member looking for opportunities to reduce electricity costs?
We would advise SEMMA members to contact Leading Edge Energy for a free review of their contracts and network charges.
You may also contact us via phone at 1300-852-770 or email at admin@leadingedgeenergy.com.au
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