Manage Costs
The Essential Guide For Small Businesses On Energy Price Change Notifications
Learn how to navigate energy price change notifications for small businesses and take steps to ensure you're on a competitive energy deal. This guide covers everything from understanding the basics to dealing with rate changes.
18 Jul 2024
By Zembl Energy Experts for small to commercial sized businesses
Running a small business requires careful management of costs, and energy bills are a significant part of that. Lately, energy retailers all around Australia have been notifying their customers of changes in rates, usually through official letters dispatched by post or email.
These notifications outline the changes to the Default Market Offer (DMO) and the Victorian Default Offer (VDO). As a business owner, comprehending these changes is critical for effective expense management.
Let’s dive into the intricacies of these letters and how this information may impact your business, along with the steps you can take to ensure you’re on a competitive energy deal.
UNDERSTANDING PRICE CHANGE NOTIFICATIONS: THE BASICS
If impacted, you can expect to receive your energy plan price change notification via mail or email. This outlines how and why your retailer has decided to modify their customer’s energy rates. This letter is more than just a procedural requirement, it provides crucial information about your energy agreement, let’s get into the detail below.
HOW TO MAKE SENSE OF YOUR PRICE CHANGE NOTIFICATION
When you get your price change notification, concentrate on these sections:
- New Rates: Comparing these with your current rates can give you a sense of the change.
- Effective Date: Note the date from which the new rates will be applicable.
- Contact Information: For any queries or concerns, get in touch with the contact provided.
- National Meter Identification (NMI): Your NMI is your meters unique identifier and is a crucial part of all energy-related queries. Hence, you should ensure that the NMI mentioned in the letter matches your records to prevent any billing mistakes.
If you notice any inconsistencies within the letter, reach out to your retailer promptly.
UNDERSTANDING YOUR ENERGY RATE CHANGES
In Australia, the benchmark rates, the Default Market Offer (DMO), and the Victorian Default Offer (VDO), are set by the government to maintain fair pricing in the energy market. These rates are reassessed annually, thus influencing the rates energy retailers set.
KNOWING WHAT CONTRIBUTES TO AN ENERGY RATE CHANGE
Your retailer will include information within the letter to help you understand the shift in rates – some factors that cause energy prices to change include:
- Wholesale Market Prices: Increases in demand or supply constraints can push wholesale prices up.
- Regulatory Changes: Introduction of new policies or regulations can affect the cost of energy supply.
- Operational Costs: For covering rising business expenses, including marketing, debts, and staff count, retailers might alter their rates.
- Network and Distribution Costs: Accounting for around 30-40% of the total energy bill, these costs, related to the upkeep and upgrade of infrastructure for electricity transmission, can directly impact your rates.
WHAT TO DO NEXT
This is an excellent opportunity to review your current energy plan in light of your impending price change. Regardless of your rate change, if you haven’t compared your energy in 2024, now is a great time to do so to ensure you’re on competitive rates.
Reach out to the Energy Experts at Zembl for a free review of your business energy bill. Our team can assess your current rates and compare them against energy plans from our panel of Australian retailers and identify possible savings. We can switch you on the spot so you can start saving straight away.
Feel free to contact us direct on 1300 957 721 and mention you’re a member of My Business or simply submit your details below and our Experts will reach out.
REVIEW AND SAVE WITH ZEMBL
Zembl have helped My Business members save an average of $1,866 per annum on their energy bills*. How? Working with a panel of trusted Aussie retailers, Zembl saves businesses time and improves their bottom line by finding, securing and doing all the legwork of their business energy review. Request a review of your accounts with them now and see how much you could save.
Contact them direct on 1300 957 721 or drop them an email at hello@zembl.com.au don’t forget to mention you’re a member of MyBusiness as their service will be at no cost or obligation to you.
* Based on My Business members that used Zembl’s business energy review service from 1 April 2023 – 31 March 2024 with an average lead load of 28MWh per annum
Zembl Energy Experts for small to commercial sized businesses
Zembl helps businesses big and small buy better energy, saving them time and improving their bottom line. With over 14 years’ experience, their Energy Experts understand the data and the detail when navigating the complex energy market and manage all the legwork for their customers.
