If you’re hearing the phrase ‘energy management’ wherever you turn these days, don’t be fooled. It’s not just another industry buzz phrase.
Rather, it’s a lifeline for business in today’s energy market.
Energy Management is an umbrella term to describe the various strategies that businesses are implementing to better manage their energy costs. Snowy hydro, battery storage, demand response and renewables – just to name a few.
So, why is everyone talking ‘energy management’?
Rising electricity contract prices are affecting industries across the board. So astute managers are now arming their businesses with tools and expertise for smart energy management.
In fact, just last week on 5 July, the Ai Group held a webinar on electricity market trends and the effects on business. Flow Power Founder and Managing Director, Matthew van der Linden, was invited to join the webinar to discuss how important it is to consider all your energy contract options.
Finally, another way to buy energy
Until recently, most businesses only knew of one way to buy energy: fixed price retail contracts and brokers.
Matthew discussed the offerings of Flow Power – a licensed wholesale energy retailer – explaining how businesses can now buy electricity directly from the wholesale market. Without the middleman.
Once upon a time buying wholesale was seen as risky for end users. But that’s not the case with Flow Power. Our expertise, tools and technologies help businesses save significantly – with minimal long-term risk.
It’s all about supply and demand
During the Ai Group webinar, Matthew emphasised the need for businesses to understand the link between generation and consumption. Or more simply, supply and demand.
When the market uses more power, generators must produce more. And if there isn’t enough? The market blacks out. It’s that simple.
At the moment, users are unaware when supply is limited. And because most businesses are on fixed rate contracts, they have little reason or incentive to manage their usage in response to the market.
The result? Retailers pay higher prices when constraints occur – and pass their loss on to customers in the form of even higher contract prices.
Yes, it’s a viscous cycle. But it’s one that businesses can avoid by buying wholesale.
As a wholesale customer, you can respond to market signals to save on energy costs. In fact, the more businesses that buy wholesale, the better the market will cope when supply and demand are out of sync.
Solar and wind – more ways to save
If your business has dismissed solar and wind due to lack of space or capital, you need to learn about Virtual generation agreements – or as we refer to it, solar minus the panels and wind minus the turbines.
Flow Power can help your business enter an agreement with a solar or wind farm. This agreement will allow you to buy power at low rates for an extended period of time, without the upfront cost.
In other words, by locking in a percentage of your power from renewables, you can enjoy the certainty of cheap rates while also reducing what you pay during peak periods.