Network charges for Victorian manufacturer reduced by 60%

Who we helped

Our client is a manufacturing business that has relied on Leading Edge Energy to manage its electricity contracts. With rising energy prices in the Australian market, the Victorian manufacturer faced a challenging renewal period. They were concerned about the impact of skyrocketing energy costs, especially since market prices had doubled since they last signed a contract.

The Challenge

The company’s electricity costs were heavily influenced by network charges which historically accounted for over 75% of their total energy bill. With rising energy prices, it became crucial to find savings wherever possible.

The Solution: Energy Procurement and Network Tariff Analysis

Through a thorough tender process, Leading Edge Energy identified a retailer offering a peak rate of approximately 4c/kWh cheaper than its competitors. This alone represented significant savings.

However, the key breakthrough came when Leading Edge Energy’s team analysed the network tariffs applied to the Melbourne-based manufacturer. After careful review, they identified an opportunity to switch to the United Energy network tariff, resulting in a remarkable 60% reduction in network charges. This change equated to approximately $10,770 in annual savings.

The Results

Thanks to the new retailer contract and the reduced network charges, the business saw a significant reduction in their overall energy costs. Despite market rates being double what they were during their last contract term, their total energy costs dropped by 40%.

Conclusion

Leading Edge Energy’s deep expertise in retail energy contracts and network tariffs helped the Victorian manufacturer achieve substantial cost savings in an unfavourable market. By identifying and implementing a network tariff change, Leading Edge Energy was able to provide long-term value, positioning the company to operate with lower energy expenses despite the volatility in the energy market.

Network demand charges can be a heavy burden for large business energy users but they don’t have to be.

Leading Edge Energy can help your C&I business determine opportunities to reduce the impact of network demand charges on your electricity bills. Let’s explore all the possibilities for saving money on energy – sign up for an obligation-free consultation with our team.