Identifying cost saving opportunities
No two strategies are the same as every business is unique. However, regular themes include the transitioning from ‘vanilla’ fixed retail electricity supply agreements to implementing wholesale supply arrangements, network supply cost savings, energy efficiency and renewable energy.
Strategies could include:
- Transitioning from fixed ‘vanilla’ retail electricity supply agreements to flexible retail or wholesale supply options to reduce unit costs
- Implementing demand side strategies to avoid high costs periods and take advantage of low-cost periods
- Improving power quality, or power factor, to reduce network charges
- Identifying initiatives to further reduce the perceived “fixed” network charges
- Identifying and eliminating hidden energy waste and inefficiencies
- Direct or indirect exposure to renewable energy options such as small and large scale solar and energy recovery
- Moving from natural gas supply retail contracts to gas commodity wholesale purchasing and gas shipping
- Direct gas market participation in the Short Term Trading Market (STTM)
- Moving from fixed term supply agreements to a portfolio of gas supply agreements of different terms
- Spot purchasing of gas, including “as-available” gas commodity and/or transport in the portfolio to reduce costs
In addition, we will seek out opportunities to save costs through:
- Developing Demand Side Management (DSM) strategies to access incentives
- Backhauling gas to reduce supply chain costs
- Fuel substitution to lower cost fuels such as coal, waste oil or biofuels
- Exploring opportunities to exploit waste derived alternative fuels
As part of our strategy, we will implement energy cost reporting and analysis procedures to lock in savings and identify ongoing opportunities to deliver new efficiencies and cost savings.