SAVANT ENERGY
Case Studies
HOSPITALITY CASE STUDY
THE OPPORTUNITIES

ENERGY MANAGEMENT STRATEGY
Savant Energy has a detailed understanding of the National Electricity Market and the link between the wholesale price of electricity and retail charges, enabling the client to reduce their energy costs in the following ways:

1. NETWORK TARIFF RESTRUCTURING: Review revealed that there were significant opportunities for cost reduction through network tariff restructuring. It should be noted that network tariffs make up the majority of electricity charges for consumers. The determination of network tariffs and their allocation as appropriate is a specialised field that presents the greatest opportunity of cost savings for high energy users.

We found numerous discrepancies in network charges that when corrected resulted in savings in excess of $60,000 per annum.

2. METERING: Numerous options exist for electricity meters, all at differing cost levels. We discovered that across 20 sites excessive metering charges were being levied. Once corrected annual savings of $52,000 per annum were achieved. Loading of metering charges is a standard practice for many unscrupulous energy brokers. These excessive charges are often “hidden” from the client and provide no benefit.

3. APPOINTMENT: Savant Energy was engaged to undertake a closed tender for the organisation’s electricity requirements nationally, facilitating the appointment of a new energy supplier. Based on a clear understanding of wholesale electricity forward pricing cycles, a more appropriate length of contract was signed so that the client was not locked into purchasing power at a time of high wholesale prices.

Engaged to undertake a full review of the energy costs for an Australian hotel operator, Savant Energy was able to pinpoint areas of savings and facilitate the appointment of a new energy supplier, reducing annual spend of $2m by 7%. These cost savings were achieved without the need for any capital expenditure.

THE CLIENT

LARGE MULTI-SITE ENERGY USER
A private-equity owned operator of hotels, this company operates from 26 different locations throughout Australia.

THE CHALLENGE

TO EXPLORE ENERGY COST-SAVING OPPORTUNITIES
Concerned that they were not obtaining the best value through a previous broker, Savant Energy was appointed to undertake a full review of the energy costs for this multi-site organisation. After discussions, it was determined that the broker had not been thorough and had only concentrated on supply charges, with little understanding of network tariffs.

KEY OUTCOMES

NEW ENERGY SUPPLIER
The closed tender resulted in the organisation contracting with a new energy supplier, with pricing some 7% lower than that offered by the incumbent supplier.

NETWORK CHARGES
We reduced the clients network tariff by over $60,000 per annum.

METERING CHARGES
Excessive metering charges were identified and eliminated reducing the clients annual costs by a further $52,000.