Energy customers saving through free service – but significantly more left on the table

A unique, free service offered by energy retailer ERM Power has this year identified potential annual savings of more than $3.4 million for its large(i) customers – savings that can be achieved by simply moving to a different network tariff.

The savings were revealed through analysis of almost 15,000 large customer sites since January this year by ERM Power, which is the second largest electricity retailer to commercial business and industrial customers in Australia by load.

The company regularly reviews the energy usage data of its commercial and industrial customers to assess whether they are on the right network tariff, as set by their network provider.

With network charges making up around a third of some customers’ total energy bill, the impact of being on the wrong tariff can be significant, said Executive General Manager Energy Retail (AU) Steve Rogers.

“Since January of this year alone through our Network Tariff Optimisation service, we’ve identified potential annual savings of over $3.4 million for our customers.(ii)  Customers who have acted on our recommendations to move to a different tariff are estimated to be able to save up to $1.4 million each year across 350 sites. However, that still leaves just over $2 million in potential annual savings our customers could be missing out on,” he said.

Customers who have changed network tariffs based on ERM Power’s recommendation are saving an average $3900 on their annual energy bill.

While ERM Power does not benefit financially from customers changing network tariffs, as they are a pass-through charge, Mr Rogers said the complimentary review is all part of the industry-leading service for ERM Power’s large customers.

“Energy is a significant input for many large businesses and remains a hot topic, given prices today remain well above historical levels. While we would love for our customers’ sake wholesale prices to be lower, in the mean time they should speak to us about other methodologies to reduce spend,” he said.

The savings from Network Tariff Optimisation can be significant – last year ERM Power identified potential savings of more than $260,000 for one customer, across their portfolio. Surprisingly, many businesses are failing to seize the opportunity.

“It’s astonishing that a significant number of customers that we’ve contacted about a potential saving from changing tariffs have failed to even respond to that advice,” Mr Rogers said.

To create cumulative energy benefits, businesses could consider putting their identified savings towards energy management solutions that would further reduce cost and consumption. Upgrades to LED lighting, for example, can deliver an immediate payback to businesses.

“ERM Power has a dedicated Energy Solutions business that can support customers looking to get more out of their energy. This is underpinned by our unique perspectives on both the supply and demand side of the energy equation, data science and customer led solutions,” Mr Rogers said.


For further information

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About ERM Power

ERM Power is an Australian energy company operating electricity sales, generation and energy solutions businesses. The Company has grown to become the second largest electricity provider to commercial businesses and industrials in Australia by loadsuper1, and is the only energy retailer licensed to sell electricity in all Australian states as well as the Northern Territory and the Australian Capital Territory. A growing range of energy solutions products and services are being delivered, including lighting and energy efficiency software and data analytics, to the Company’s existing and new customer base. ERM Power also sells electricity in several markets in the United States. The Company operates 662 megawatts of low emission, gas-fired peaking power stations in Western Australia and Queensland.


1 Based on ERM Power analysis of latest published information

(i) Large (>160Mwh per annum) customer reviews only.

(ii) Network tariff optimisation review recommendations and estimates of potential savings are based on historical tariffs and consumption data.  Actual savings will vary depending on tariff and consumption changes.