It makes business sense to take steps in reducing energy bills. Bill verification is important since most consumers have no way of knowing the accuracy of a bill received from the local municipality. The meter that measures electricity consumption from the utility to the consumer is usually installed at the boundary of the premises, where the electricity provided enters the site.
We are all well aware of horror stories about inflated energy bills that wreaks havoc with a business especially small to medium-sized that do not always have the available capital to spend on these huge utility bills.
Reducing your energy bills should be a primary focus of any business. Online meters that is installed by independent companies is the best way to verify your electricity bills, since the meters are not easily influenced by outside interference. These online meters should have a remote monitoring function, so that you can keep track of your energy usage in real time. This will allow the engineers and managers to have more time in fixing problems as soon as they arise.
Reasons for verifying your bills:
- Running a sound business is all about cash flow. High utility bills will have a negative effect on your capital, capital that could have been used better elsewhere.
- High electricity bills will affect the prices of your products. Higher input and production costs will mean a mean a more expensive product, this is equally true for all business sectors be it in the Hospitality or Industrial sector.
- Since electricity is a utility that can be cut-off at any time, you want to pay your bills on time and not be surprised by a high energy bills that you cannot pay at that given time.
- The verification becomes even more important during the planning stages and implementation of a new operation or adding facilities on the premises. Since the financial viability will have to be evaluated. High electricity bills will affect any plan negatively since it might not seem viable due to the high utility bills. Reducing energy bills is paramount for future operations.
Tariff analysis and comparison as a contributor to save on energy costs
In South Africa and around the world there exists different tariffs. Some are very complicated with different rates depending on the time of the day, these are called time-of-use (TOU) tariffs. Some are basic, which will have a flat rate throughout the day.
By law any company has the right to move to a cheaper tariff if one is available at that location. Tariff analysis and comparisons are two different services.
When last have you checked your business’ electricity rates? Power-star can help to compare the the different business electricity rates.
Comparing tariffs is essential since the possible savings procured through verifying your bill might be offset by being on a more expensive tariff. As previously mentioned, there are different electricity tariff structures for example the time-of-use tariff or a peak demand tariff, which might not be the best for your business. Evaluating the different tariff structures available you can make informed decision if moving from one tariff to another is in your business’ best interest.
Get in touch with your local municipality and enquire about the best possible rate. We at Power-Star, arguably has the most extensive tariff database in South Africa, with which we can assist you. Contact firstname.lastname@example.org for more information
Tariff analysis is more complicated because of the many factors that are involved. The first step is to install an online meter capable of handling the complexities of certain tariff structures. Not all smart meters are equal and a meter that can record and categorize all of the data is preferred.
Since certain structures are more complicated than others, analysing the data is essential for your operation. For example: Company A is a brewery that is currently on a time-of-use tariff. This specific tariff charges different rates. Most expensive during peak hours and cheapest during off-peak. Through on-going measuring of the data, actions plans can be created to better utilise off-peak charges, like heating the hops to optimal temperature in the morning before 08:00 instead of heating it once the day starts, during peak hours. Energy management services can provide assistance on improving the production line. Although the company is one a time-of-use tariff, this might prove to be beneficial if the processes are implemented at “cheaper” times. Some tariffs might even combine different rates which will need close scrutiny in order to lower the electricity at the specific site.
These two services is a cost effective way of reducing energy bills across the board and will help your company to remain profitable by lowering electricity costs. Tariff analysis will assist your company being more energy efficient. Saving on electricity costs is not just about paying less but also to use your energy more wisely.