+27 87 820 1694 info@power-star.co.za

3 steps to reduce your energy costs

Lowering costs is paramount for any business that wants to succeed. Cutting energy costs does not necessarily have to be expensive. By following these three steps, you could potentially save on your electricity costs

Step 1: Understanding your tariff

Understanding your electricity tariff structure is vital for a business to run effectively. The various components of a tariff vary greatly depending on the supplier. Some are more complicated than others for example, time-of-use and co-generation tariffs. Certain tariffs will have added parameters like distance from the supplier, voltage and capacity. Having knowledge of all the costs and penalties on certain tariffs, we are able to advise you on energy plans and contingencies to improve overall energy usage as well as lowering the costs.

With Power-Star’s real time metering in place and your specific tariff applied to the data, we are able to see how your operations impact your electricity costs. Our meter was specifically designed with these kinds of operations in mind and we will be happy to assist you.

Step 2: Ensuring your bill is correct

Billing authorities get it wrong from time to time, and as we have seen with numerous customers, having independent measurement to verify the bill is a priority. Like an independent tax auditor is mandatory for any business, so too is the independent verification of your energy bill. The Power-Star web interface has a user-friendly bill verification tool that should be used on a monthly basis to ensure the numbers are correct.

In Image 1 below, it is apparent that this particular customer had been over-billed by the municipality. Our data shows the percentage variance on each line item, such as demand (kVA) and consumption (kWh). The total variance for the month in question was a staggering 36%. Other months were as high as 53%

Bill Verification

Bill verification charts and statistics

We have numerous success stories where customers received significant rebates due to periods of incorrect billing. Let us check your bills to make sure that they are correct.

Step 3: Tariff Comparison

Electricity tariffs may appear to be complex and fixed, i.e. you have no choice but to pay according to the given set of criteria. This is not the truth, and in fact it is legal to make a change to another tariff, so long as certain rules are adhered to, and that you remain on the new structure for at least 12 months.

Experience shows that most companies do not take the time to understand their tariff, and may even be able to have a lower electricity bill if they were on another tariff. With an energy profile, we are able to overlay various tariff types to determine what your bill would have been if you had to switch to another tariff. With an excellent understanding of the various components in any given billing structure, and knowledge on interpreting the energy data, Power-Star is equipped to enable customers to make tariff changes where appropriate. We ideally want to work with 12 month’s data to ensure we have accurate comparisons based on the seasonality of some tariff structures, but also the seasonality of your business.

Image 2 illustrates a Tariff Analysis trend report compiled for a customer. The client moved from a City of Cape Town Large Power User tariff to a City of Cape Town Time-of Use tariff. Due to this move the client will save R2.8 million annually.

Tariff analysis trend report. The savings from one tariff to another is evident.

Tariff analysis trend report, The savings from moving from one tariff to another is clearly evident.

Power-Star is in possession of one of the most extensive tariff databases in South Africa. Evaluating the different tariff structures available to you, you can make an informed decision if moving from one tariff to another is in your business’ best interest.
Contact us at info@power-star.co.za for more information.

Submit a Comment

Your email address will not be published. Required fields are marked *

Share This