With escalating energy costs, it is more important than ever to understand when to enter into contract negotiation, how to manage regulated costs and how to achieve the best possible price.
Since the deregulation of energy supply, Energetics has built a reputation for delivering and managing regulated costs, our clients are able to achieve their procurement objectives and focus on their core business.
Energetics’ energy procurement experts continuously analyse market conditions, trends, and latest pricing models to provide a range of electricity, gas, fuel, metering and environmental services:
-
energy contract negotiation with electricity, natural gas, fuel and LPG suppliers to ensure clients secure the most competitive price and achieve long-term strategic objectives
-
tendering and request for proposal process management, including releasing 'request for proposal' documents to market, managing energy retailers proposals, and mediating client and retailer meetings for further negotiation
-
benchmarking to verify existing contracts are performing to expectations and compare energy costs on a site-by-site basis to identify potential energy and cost saving opportunities. As a result a business may negotiate better tariffs, identify billing errors or better understand budget impacts
-
proprietary tools and established procedures to assist in the analysis of responses to minimise risk in new contracts
-
long-run energy price forecasting to assist with contract timing and ongoing cost minimisation decisions
-
on-going contract management and bill processing services to help optimise costs over the life of the supply agreement
-
advising the procurement implications under the Clean Energy Future legislation, as well as supporting strategy development for lowering the emissions intensity of energy used on site
-
understanding potential carbon pass through liabilities from energy contracts as well as across your business as a whole
-
tracking and monitoring pool, contract and forward market pricing across all states
-
identifying and negotiating the best GreenPowerTM deal in the marketplace
Energetics maintains independent and ethical relationships with retailers, regulators and local network service providers. We can help you minimise risks associated with energy supply contracts such as exposure to default rates, exposure to market price cap events and force majeure events.
We can help you understand your energy supply agreements and assist in contracting future requirements.
Energetics provides specialist advice to manage the complexities of carbon procurement and sales.
Energetics is Australia’s leading expert consultancy in the area of carbon markets. Our strategic procurement advice determines the most appropriate and well priced source of carbon offsets to offset your organisation’s remaining emissions. We also develop approved and validated methodologies to calculate and verify abatements so you can achieve the best possible price for your offsets.
Our end-to-end carbon trading service helps clients to:
-
define current market prices
-
understand ‘Trading 101’
-
sell abatements into the market and define their worth
-
source abatements from the market and ensure their worth
-
learn who else is actively participating
-
know what documentation to use
-
understand which accreditations are required
Energetics holds membership to the audit panels for the Greenhouse FriendlyTM program and the Greenhouse Gas Abatement Scheme. We also have strong experience in preparing Clean Development Mechanism (CDM) project documentation for clients; including Project Idea Notes (PIN) and Project Design Documents (PDD).
The combined effect of escalating energy costs and the reduced cost of imported technologies has lead to a renewed interest in energy efficiency projects.
Energetics has been assisting many of our clients to participate in the ESS realising ~$10m worth of certificates.
This year, our work with one client alone on their ESS accreditation and management will lead to that business receiving over $3m.
The NSW Energy Savings Scheme (ESS) further supports the business case for pursuing energy efficiency measures.
The Scheme recognises the energy savings achieved by a business through the generation and allocation of tradeable Energy Saving Certificates (ESCs).
It places an obligation on electricity retailers to purchase a certain number of ESCs each year. Failure to obtain sufficient ESCs by the end of each compliance period results in fines being issued by the regulator.
This ascribes a value to the certificates and creates a market for trading.
Eligible energy savings projects can create Energy Saving Certificates (ESCs) each representing one tonne of carbon dioxide equivalent greenhouse gas not released to the atmosphere. By participating in the Scheme, your business can offset the cost of energy efficiency projects.
Benefits of participation
-
The certificates can be considered as a tradeable commodity and prices are currently ~$30 per ESC. Their potential value can add to the business case for a project and in some cases fund the project entirely.
-
The creation of certificates is based on demonstrable energy savings. This supports a business’ social licence to operate.
What type of activities can generate certificates?
Under the scheme Recognised Energy Savings Activities (RESAs) are accredited by IPART and can include projects such as modifying, replacing or installing more energy efficient end-user equipment. Activities involving the removal of end-user equipment are also eligible so long as there is no reduction in production or service levels.
Certificates can be calculated using a range of different methodologies and in many cases can be created upfront or “deemed”. Energetics can advise as to the most appropriate methodology for your project.
Energetics experts can assist to:
-
Identify opportunities for creating RESAs
-
Prepare and submission of the RESA to IPART
-
Manage the ongoing record keeping
-
Facilitate the sale of the certificates, and
-
Conduct independent measurement and verification of the savings achieved to support the ongoing creation of certificates.
Energetics has the largest team in Australia with International Energy Management Accreditation. Many are Certified Energy Managers (CEM) and/or accredited as practitioners to the International Performance Measurement and Verification Protocol (IPMVP).
As a member of the ESS Audit Panel, Energetics employs a number of accredited and experienced ESS lead auditors. We assisted in designing part of the ESS (and VEET in Victoria) and have a long history of providing similar services to clients under the NSW Greenhouse Gas Abatement Scheme (GGAS) which was the precursor to ESS.
Energetics provides specialist advice to help manage energy price exposure and mitigate carbon risk.
Current low market prices represent a good opportunity to forward contract beyond the expiry date of your existing agreement. Many end-users are taking the opportunity to re-contract early to provide forward budget certainty and to lock in the low contract rates that are available. A client who recently re-contracted their electricity commencing 1 July 2011 reduced their future energy costs by $515,000 a year.
Electricity and natural gas market prices in Australia are highly volatile. Our extensive market knowledge and expertise helps clients gain a better understanding of future energy prices, market dynamics and the best time and method to negotiate a new energy contract.
Energetics holds an Australian Financial Services License and provides independent market intelligence to clients on an ongoing basis. Our team of experienced procurement managers, traders and market analysts examine a wide range of data when preparing energy market reports and tailored purchasing strategies. Energetics advises clients on each of the contract formats and their suitability to their individual circumstances.
We carry out routine network tariff reviews on behalf of a number of large energy users and have extensive experience in identifying and implementing tariff changes across all network areas in Australia.
Electricity and natural gas market prices in Australia are highly volatile. Timing of going to market is the single biggest driver of retail energy costs and it is important to monitor market prices. Energetics provides market advice to a number of large energy users and recommendations of contract timing and associated contract duration.
To align with the timing of changes in published tariff rates, we recommend rolling tariff reviews in January (for Victorian price changes) and July (all other states) each year.
With long-term price drivers indicating that prices will rise in the coming years, proactive management of identified exposures through forward contract negotiation and other derivative markets can provide the certainty required to invest in the future.
Contact Energetics for a short briefing to help you develop a strategy to minimise your energy costs. We can also by reviewing your portfolio and advising the optimal tariff arrangement for your business.