It can be easy to feel like your power bill is at the whim of fluctuating energy prices. When they jolt up, your bill jumps up too. However, what you may not know is that there is a way to stay on top of your electricity bills by taking a couple of simple steps.

Firstly, you need to know about electricity contracting. Did you know that you can lock in your electricity agreement in advance, when prices are good?

Your business may already have a contract in place until the end of the year, but you can secure your electricity contract months or even years early, before you’re due to renew your contract.

This is great news for any businesses looking to save big on their power bill! The price of electricity can fluctuate by up to 5c/kWh most years, so just imagine how much you could save by locking in your contract before prices spike. So, how do you do this?

Market timing is the secret to saving big.

Like most businesses, you probably only think about your electricity contract when it is due to expire. At that point, it often seems easiest to continue with the same contract, even thought it may not be what’s best for your bottom line.

To demonstrate what a difference it can make when you follow the electricity market, here is a comparison between Greg and Tony, who are both considering their next electricity contracts.

Scenario 1

Greg examines the electricity market 10 days before his current contract ends and sees that the wholesale price of electricity is around 12c/kWh. Retailers add their retail margin on top before handing Greg his rates. Retailers provide Greg with quotes around the 12-13c/kWh mark.

Scenario 2

Tony regularly checks the electricity market and has seen that prices are low, around 5c/kWh. However, his current contract doesn’t expire for another year. Tony makes the decision to go out to market for his next contract in advance while prices are at 5c/kWh. The retailers add their margin to the wholesale price, providing quotes around the 5-6c/kWh mark.

Tony’s rates are more than 50% less than Greg’s, because Tony has been keeping track of prices.

It’s easy to see which option is better!

I’m sold! How do I lock in a low rate?

Firstly make sure you know the length of your current electricity contract.

Secondly keep an eye on the electricity market. Our trusted partners, Leading Edge Energy, have some great resources to help you do this easily. Link below.

Thirdly, make the move! When prices are low, go to market in advance and get a futures contract.

Interested in having a professional review your energy needs and recommend an electricity contract for you? CLICK HERE and our friends at Leading Edge Energy will give you a FREE energy evaluation!

Huge savings for Brisbane businesses

With a great price secured for your electricity, and solar energy on your roof, your power bill will shrink and stay small. With Energy Partners and our reliable team of experts, you can breathe easy and keep your money in your pocket. Get in touch on 1300 768 977 or CLICK HERE to get in touch.

Gallery.


Jay Dean

It all starts with a conversation

Thanks for getting in touch, we’ll be in contact shortly.

Take the first step now.

Add your details now, and we’ll be in contact with ways to save you money.