Demand savings case studies
Businesses across regional Queensland are making significant savings on their electricity bills by switching to our new network demand tariffs.
By looking at what drives our costs and better aligning our pricing signals, we have been able to offer the new tariffs. The Seasonal Time-of-Use Demand tariffs provide real savings when the network is not being used to its full capacity.
Take a look at our online videos and read the following case studies to find out how the new demand tariffs are helping large energy users to save on their network electricity charges.
- Crumpton and Sons and Kingaroy Blanching (PDF 101.5 kb) - agri-businesses saving 27%
- Piccones SUPA IGA (PDF 106.4 kb) - a seven days a week supermarket saving 10%
- The Glennie School (PDF 103.3 kb) - a large all-girls boarding school is saving 12%
- Louie's Liquor Barn (PDF 101.1 kb) - another seven days a week retail business saving 42%
These are all customers who use between 100MWh and 4GWh of electricity a year. For more on the network tariff options for large energy users refer to Your Network Tariff Options More than 100MWh pa (PDF 100.0 kb).
For information on the Seasonal Time-of-Use Demand tariffs available for customers using less than 100MWh and for those using more than 4GWh, refer to our Network Tariffs webpage or talk to your chosen retailer.
I’m Sonie Crumpton, I’m the General Manager of G Crumpton and Sons and Kingaroy Blanching. G Crumpton and Sons processes raw peanuts, and at Kingaroy Blanching, that’s where we do the blanching and roasting. We are a big energy user, one of our big uses of power is cold storage, I can store up to about four (4) thousand tonnes of cold stores and they run 24 hours a day 7 days a week. For me it’s very important to keep my costs low because I compete with overseas product, part of that is by reducing my energy costs.
Network tariffs are a component of everyone’s electricity bill, regardless of who their electrical retailer is. This seasonal time-of-use demand tariff is an alternative to our standard network tariff, for large business customers. It gives them choices on how they use energy and charging rates in peak and off-peak times. Under the seasonal time-of-use demand tariff, customers are charged based on how much energy they use, when they use that energy and the maximum demand they place on the network. The peak demand charges under the tariff apply for just 7% of the year, being 10am to 8pm, Monday to Friday, in the summer months of December, January and February. Much cheaper off peak rates apply for the rest of the year in the 9 month period.
The new tariff matches our profile. We use a lot more power in the winter months because we are processing then. And in the summer our production comes back so that tariff suits our production well and works really good for us
Crumpton and Sons has made some excellent savings by moving to this tariff as their processing operations tend to be outside the summer peak demand period.
I think at the time on our use we were going to save between 25 and 40 thousand per year. It’s a big saving for not a lot of effort. It’s probably the best saving I had out of all the stuff that I had done. The best thing you can do is get advice and if there is some way you can save on your energy, you need to do it. Other business could get big savings like I have by switching as well.
This SUPER IGA trades seven (7) days a week from (five) 5 am until midnight. The energy usage we have in this store, peaks at about 320kW in summer and about 230 in winter. The main uses are the refrigeration, ovens and air-conditioning. One of the biggest costs to our business is energy, and so we changed to the tariff that we are now on.
This seasonal time-of-use demand tariff, is an option for our customers in regional Queensland, it gives them choices on how they use energy and different charging rates on peak and off-peak times. Under the seasonal time-of-use demand tariff, customers are charged based on how much energy they use, when they use that energy and the maximum demand they place on the network. For some customers this tariff will be a natural fit for their business, and that can make savings without having to make any changes in their operations. Other customers could make savings by adjusting their consumption and power demand during those peak times.
They had a lot of factors that were working against them so fortunately we were able to move some of those peaks out, which has ultimately smoothed their load profile.
And that of course is, that’s giving us substantial savings of 10% or more.
The IGA supermarket has made some good savings by switching to this tariff. By adjusting their consumption and which in turn lowers their peak demand charges.
If I was a business owner I would go out and get myself a good power specialist and get him to make sure that you are on the right tariff, so you can make the changes that we have made that have made us a lot of savings.
Get on board; managing your electricity costs now, is probably more than ever, an important thing to do.
The best thing about all of this is that the changes to our customers has been zero, that everything gets continued on, but we have been able to make savings but the customers have not been effected one iota.
Yeah my name is Jason Hockaday, I’ve been the director of finance at the Glennie school since 2000. So we’re a boarding school, we have about 850 students, about 30 buildings, we’re running 24/7, so our boarding houses, commercial kitchens, our swimming pool are continuing to run 24 hours a day 7 days a week. Well electricity is becoming a bigger and bigger part of our running costs, so if those costs change to the seasonal time-of-use demand tariff, following some advice from our electricity broker, he looked at our consumption data, and he could see that we would benefit by changing from the old tariff to this new one.
This seasonal time-of-use demand tariff is an option for our regional customers, it gives them choices on how they use energy, and different charging rates on peak and off peak times. Under this new tariff you have more control on how much you pay for your electricity costs, this means that more of the costs move into more of the variable costs that you control, rather than the fixed costs which you have no control.
Yeah the new tariff is better for the Glennie School because it encourages us to reduce our demand during those peak periods and that matches our business cycle, so we’re closed in December / January and we can look at reducing our power during the winter months when we are using more power.
For some customers this tariff will be a natural fit for their business, and that can make savings without having to make any changes in our operations. Other customers could make savings by adjusting their consumption and power demand during those peak times. The Glennie School has made some good savings by switching to this tariff as their consumption over the summer months is lower.
Since changing to the tariff years ago, looks like we achieved some savings in the peak demand. The savings that we got were achieved without making any changes, so it was purely the change of tariff that caused those savings.
The best way to see if this tariff is right for you is to have a tariff review undertaken. A tariff review involves looking at your last twelve (12) months consumption and modelling that against this new tariff structure. You can see straight away whether you would be better off under this tariff.
I would encourage everyone to get on and have a look at this new seasonal time-of-use demand tariff and see if it’s a fit for their electricity consumption and if it is well then go about making the change.
My name is Anna Pedler, I am the manager here at Louie’s Liquor Barn in Edmonton. As you can imagine we have a large retail space here, and with our fridges and cold rooms and also with the cold wines and RTD fridge’s, just pumping through electricity on a huge basis here, we brought an a consultant to have a look at the business and see how we could be saving money and what we might be doing incorrectly. Looking at the tariffs that we use for our busy periods and they suggested that we look at our seasonal time-of-use tariff and there could be changes that we could be making there.
By looking what drives our network costs, Ergon Energy has been able to develop more cost effective equit or pricing structures. This new seasonal time-of-use demand tariff is an alternative to our standard default network tariff. It gives customers in regional Queensland an alternative tariff to go onto which they can better control their energy costs. In the non-summer months the demand charge is a lot lower, that’s when businesses can make some real savings. Having a tariff review undertaken, is the best way to see if this tariff is right for you. A tariff review looks at your twelve (12) months consumption previously, and models out against this new tariff. You can then see if making the switch is right for your business. Louie’s Liquor Barn has taken advantage of this new seasonal time-of-use tariff. It’s a better match for their consumption and by simply moving onto this new tariff they can now make some big savings on their bill.
Since switching to this new tariff we have seen an immediate reduction in our costs, saving over $17,000 in the last seven (7) months.
To find out more about this tariff, you can talk to your electricity retailer, your energy advisor, or visit ergon.com.au and search demand tariffs.
I think it would benefit any business too have a look at it and see if swapping over to the new tariff would be a benefit to their business, there could be great savings in it for them.