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Optimize your company's charges for electricity and natural gas

We talked about how to properly control energy prices and energy costs in your company in a previous article - I encourage you to read it HERE.

 

Today, we will suggest measures that will allow you to monitor and reduce your company's energy costs even better.

How to optimize your electricity and natural gas invoice to reduce your company's energy costs?

1. Incorrect price on the sales invoice

It's a good idea to control how your energy supplier calculate the price in a given month. Especially if your contract is based on a price formula with indexation to prices from a power exchange (tranche model contract). The room for interpretation of some price components is large, contract provisions significant. Can you find the time to say 'check' every month? After all, every 1 EUR/MWh is a measurable benefit to your business.

2. Incorrect rates on the distribution invoice

Tariffs change, and for the purposes of electricity budgeting or natural gas budgeting, it is worth updating them. Distributors or trading companies when it comes to comprehensive contracts for natural gas are rarely wrong about distribution rates. They assign a given tariff group to a point of consumption and verify the rates from the tariff. Nevertheless, your own calculation of consumption against the rates of the individual components of the price of electricity or gas will give you peace of mind that the expense is correct.

3. Incorrect consumption on a sales or distribution invoice

In most cases, the consumption on an electricity distribution invoice from the Distribution System Operator is correct - however, there are cases where the distributor wrongly takes incorrect values. For this, the differences between the consumption on the invoice at the electricity seller in relation to the consumption from the DSO are already frequent cases and correction will be required.

4. Contracted power overruns

Optimization of contracted power can bring very large savings. Just remember that you can increase the contracted power up to the maximum of the connection power. It is worth to calculate what is more profitable, temporary excess 'deliberately' in a given month but the rest of the months with a lower contract power, or increase the contract power and no unexpected additional expenses.

 

You will get a higher contractual power than the connection power only after obtaining new connection conditions/technical interference.

5. Costs for reactive energy

Optimization of contracted power can bring very large savings. Just remember that you can increase the contracted power up to the maximum of the connection power. It is worth to calculate what is more profitable, temporary excess 'deliberately' in a given month but the rest of the months with a lower contract power, or increase the contract power and no unexpected additional expenses.

 

You will get a higher contractual power than the connection power only after obtaining new connection conditions/technical interference.

6. Other country specific e.g  Polish Power charge factor (strive to make it as low as possible).

Lowering the power charge factor is possible when the electricity consumption profile will flatten out. Remember that the time interval of 7:00 am - 10:00 pm are the hours when high power fee is charged. Reducing consumption during these hours and shifting consumption to other hours of the day effectively lowers power fee coefficients. Remember that it is worth taking care of the profile per each decade of the month!

7. Are you sure the rate on the invoice should be so much?

The constantly changing energy law means that you may not be aware of the exemptions you can get. Energy purchase regulations are, for example, exemptions from excise tax, RES/cogeneration fee, etc. These are significant savings that can be obtained.

Optimization of electricity and natural gas invoices - summary

Optimization of business electricity and natural gas expenses is a key issue for any business owner. Controlling invoices, being aware of the differences in tariffs and contracts, and knowing the regulations can result in significant savings. There are various ways to monitor and reduce energy costs, from understanding the invoice structure to more advanced strategies like contracted power regulation and reactive energy management. By taking care of each of these aspects, companies will not only lower their bills, but also contribute to a more responsible and efficient use of energy resources. It's worth investing time and resources in an in-depth analysis of your energy needs to fully realize the potential for savings and move toward sustainability.

 

By using Enerace's invoice control offering, you will receive a comprehensive service that allows you to better monitor your energy costs and takes into account:

 

  • Collection of invoices, contracts, consumptions - directly from the seller and distributor if possible.
  • Prices, consumptions, costs are imported into the Enerace.online purchasing system, which creates both a master invoice and shows the differences to the prices that occur on energy invoices.
  • Budgeting energy costs and preparing relevant statements is very easy because you have all the information and our experts estimate possible percentage changes and trends for each component of the invoice.
  • Reporting energy costs with accurate data on distribution rates is a great added value.
  • Electricity and natural gas real consumption are juxtaposed with the predicted ones, so you will check whether certain contractual assumptions (e.g. regarding the minimum or maximum consumption adopted with the energy seller) are or will be met - so that you can take possible countermeasures in advance and negotiate the energy contract.
  • In case of discrepancies, our experts will be happy to explain the reason for the discrepancies and, if necessary, contact your seller or distribution company to settle the matter.
  • Ongoing invoices also provide you with knowledge of possible overruns, surcharges, penalties. You will therefore receive an alert in case of any out-of-normal readings.
  • Thanks to better monitoring of energy consumption, your company will be even better able to optimize the operation of machinery and equipment to achieve additional benefits such as 'flattening the profile' or shifting the profile to the cheapest hours of the day.
  • Reports per site, or on a total for all points of consumption in a given month will greatly facilitate the transmission of information in your company.

 

Take advantage of Enerace's offer now and consciously optimize your company's energy costs!

Author: Bartosz Palusiński