Tariff Review


 
Six of EAGAs members have recently completed a tariff review across the region’s energy intensive sites and successfully indentified annual savings of over $98,000.

Tariff optimisation involves ensuring that a network and demand tariffs are the most cost effective based on a site’s consumption profile. Councils may often be on the incorrect tariff for a number of reasons:

  • Site consumption can change over time (eg. HVAC or lighting upgrades)
  • Network cost is passed through from retailers so no incentive for them to alter tariff
  • Retailers often don’t have expertise to consider and assess tariffs
  • Not in best interest of the distributors to reduce user costs

Depending on which distributor region the account is held in, the possible number of tariffs range from 29-61. These tariffs change every year on the 1st January and are a regulated pass through charge.   Importantly for Councils, tariffs are not linked to an energy procurement contract, meaning they can be changed without compromising any existing contractual obligations (for instance with Procurement Australia). 

Further information please contact our Regional Coordinator here.