$12,000 network tariff saving and cheaper electricity rates for Alpha Detroit

With remarkably low electricity rates in Victoria at the tail end of Q1 2022 which are expected to skyrocket soon, there has never been a better time for forward purchasing to lock in favourable rates – even if your business is still under contract.

Leading Edge Energy’s Sales Manager Ewen Beard reached out to South East Melbourne Manufacturers Alliance member Alpha Detroit to offer advice on how to reduce their electricity costs.

Ewen immediately identified that Alpha Detroit – heat treatment specialists – were on an incorrect network tariff.

Network tariffs are the fees that go towards maintaining the network – also known as “poles and wires” charges, which can account for between 30 and 60 per cent of an electricity bill.

He advised Alpha Detroit’s management that they could change the tariff they were on to remove peak demand charges from their bill which was especially favourable to the company because they use a high volume of power in a short period of time. 

The change of network tariff which took effect immediately resulted in a massive $12,000 saving per annum which is equivalent to 63 per cent of what they were paying. Ewen then explained that while Alpha Detroit was bound in an electricity contract until 31 December 2022, they could secure a contract in advance to take advantage of the current low rates before prices go through the roof. 

After showing Ian the state of the electricity market in Victoria and the way prices are expected to shoot up, Ian quickly recognised the opportunity he was being presented. 

Market timing is always key so Ewen put a tender out and the best offer was accepted, leading to a further 45 per cent saving on retail rates. 

The new contract, which is set to kick in on 1 January 2023 resulted in a further yearly saving of $2,250.

After engaging with Leading Edge Energy for a free evaluation, Alpha Detroit is now looking at 50% savings on total energy spend come January 1st 2023 when the new contract begins.

Being a fairly intensive energy user, Alpha Detroit has spent 65 years becoming efficient in the way they do things to reduce our costs and ultimately, carbon footprint.

From efficient use of surplus heat in furnaces to process lower temperature work to re-using metal packing straps rather than sending them to landfills Alpha Detroit actively makes a concerted effort to reduce its carbon footprint and limit emissions.

“The $12,000 annual saving on network tariffs alone was an incredible result for us. Working through the different tariffs available is not easy and that’s where Ewen was able to offer fast advice and act on our behalf immediately. Ewen was a clear speaking professional who knows the electricity supply industry better than I do.  

What was also insightful was that Ewen told us that we could secure a new contract in advance, even if we were still under another contract. The additional savings from this was a real bonus. We locked in four years of low retail pricing well in advance, so we are future-proofed against any spikes in electricity prices that we all know are coming.

 I would strongly recommend Ewen and his team to help you find a better electricity contract.”  – Ian Mahoney – Managing Director Alpha Detroit Heat Treatment.

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