9 Steps to cost reductions 2017-09-15T06:49:49+00:00

Nine steps to reduce energy costs by up to 50%

We offer a well defined process to identify cost reduction opportunities. In the interest of clear transparency with our clients, here is a broad overview of our nine-step process:

1. Develop a Strategy

Understanding the business objectives and formulating a strategy to meet those objectives is a fundamental first step in reducing electricity costs.

2. Analyse the Operations

What time of day, day of week, month of year is electricity use at its highest and lowest? What and when is the maximum demand, what drives maximum demand, which equipment has what load, which equipment needs to run all of the time and which do not run at capacity, what is the site power factor?

3. Understand the market

What drives electricity prices, how are retail prices constructed? What drives wholesale prices, what are the historical price patterns, when are prices high and low, what time of day, day of week and month of year are prices highest and lowest, when is it best to go to the market for pricing offers?

4. Understand the electricity bill

The electricity bill consists of electricity charges based on time of use, network charges based on maximum demand and electricity usage, charges for renewable electricity certificates, metering charges, market charges and supply charges. Knowing exactly how these components are charged will allow an end user to monitor and reduce those component charges.

5. Network cost reductions

Based on the analysis, opportunities to reduce “fixed” network charges by reducing maximum demand charges and/or switching to a better-suited tariff can be identified.

6. Electricity Unit Cost Reductions

It is possible to buy electricity at wholesale prices and not pay the risk premiums built into retail prices? This step identifies the potential rewards, risks and the risk mitigation strategies of buying wholesale.

7. Electricity Efficiency

The cheapest electricity is the electricity that you do not use. There are a very wide range of technologies, equipment and practices that can reduce electricity consumption. We carry out an energy efficiency audit of your business and identify energy waste and efficiency opportunities.

8. Alternative Electricity

Many innovative companies are investing in alternative electricity sources such as solar generation and waste heat recovery. This can be via direct investment or an agreement with a renewable energy project.

9. Monitoring, reporting and continuous improvement

It is critical to continually monitor electricity consumption, demand patterns, power quality and spot price outcomes to ensure savings are both locked in and improved upon.