by chris | May 19, 2015 | Energy
Total Utilities provides an end to end approach to utility optimisation by focusing on the key business drivers such as controlling cost and consumption. Typically we find that businesses can overlook the strong relationship that exists between purchasing prices, consumption and the efficiency and effectiveness of utilisation.
Through tailored services that can help any business assess, improve and manage on site levels of energy efficiency, with the use of innovative energy efficiency and energy management methodologies businesses will be able to generate up to a 40% reduction in total energy usage, which directly correlates to significant cost savings, increasing the sustainability of your business. (more…)
by chris | Jan 15, 2015 | Energy
Geothermal generation supplied nearly 20% of New Zealand’s total electricity last week – a substantial rise from the average 7% contribution from this energy source. The spike in demand was due to lower than average output from thermal and hydro generation, caused by power station outages in December and low inflow levels in the country’s hydro lakes.
Thermal-based generation outages kept pricing elevated throughout December and Contact’s Otahuhu B plant in Auckland remains out due to on-going maintenance. National water storage in hydro lakes has continued to fall around 7% below average for this time of year. Latest NIWA forecasts predict less than a 50% chance of rainfall hitting normal levels in the South Island between January and March. This could be compounded by above-normal temperatures in the west of the South Island over the same period with a 35-40% chance of average temperatures in all other Southern regions.
The country’s biggest hydro generator, Meridian, is reported as being “comfortable with the current situation.” Meridian’s operating report for December shows its inflows last month were 81 per cent of average. (more…)
by chris | Sep 5, 2014 | Energy
Price is not king when it comes to managing utilities and getting the best from your investment. Businesses typically overlook the strong relationship between purchasing prices, consumption and utilisation efficiency. Focusing on cost per unit without analysing the way in which utilities are consumed can result in businesses paying more and getting less value.
Total Utilities provides an end-to-end approach to utility optimisation across electricity, natural gas/LPG, trade waste and ICT. This starts with strategic, proactive purchasing but it doesn’t end there. We focus on key business drivers like controlling cost and consumption – and report back on usage trends, exceptions and changes, provide budgeting advice for the future and remove the need for manual bill-checking. These deliverables should be underpinned by a proactive energy audit of any new premises to ensure that these meet best practise from day one.
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by chris | Sep 1, 2014 | Energy
Electricity price rises are coming from the regulated parts of the industry, writes Chris Hargreaves in the Sunday Star Times 31 August 2014.
Rod Oram’s recent comments in the Sunday Star Times and on National Radio were critical of the current market prices for retail energy and the way in which increased profits were distributed to shareholders by generators and retailers – rather than being used to bring retail pricing down.
While Rod’s comments bear thinking about, his analysis failed to take into account market changes over the past few years – and the considerable impact of key pricing factors such as transmission and distribution charges (both of which are regulated and out of the control of retail providers).
Rod Oram also appears unaware of the significant reductions in energy prices that have benefitted commercial users of electricity in the past. Total Utilities Management Group has seen reductions averaging 20% on recent contracts since the last quarter of 2012 as both generators and retailers have rebalanced their regional and commercial portfolios in response to changes in generation capacity, lower demand and increased regional competition.
Electricity pricing in New Zealand is far from transparent. This leads to uncertainty around how invoiced prices are derived and means that changes to the various cost elements can be difficult to police. This uncertainty can muddy the water when talking about the historical cost of contestable energy prices.
The Electricity Authority recently released a Statistics New Zealand survey covering historical retail residential pricing with figures backed up by the MBIE. (more…)
by chris | Apr 9, 2014 | Energy
Vector and United Networks are shifting away from a volume-based pricing methodology in favour of a peak demand weighted tariff structure.
From April 1st, large customers in Central and South Auckland will see little advantage in seasonal Summer Day prices as these are aligned to a reduced Winter Day rate/kWh while the demand tariff will increase by 12.8%. North and West Auckland customers on non-demand time of use metered load groups will be transitioned over to a new pricing plan that includes a peak demand charge.
Added to this is the continuation of the stepped increase to the Power Factor tariff. Customers with reactive load problems will be in for even bigger charges as the rate per reactive unit increases from $2.00/unit to $8.00/unit. Based on discussions with the energy retailers, this charge will again be increased to $17.50/unit from April 1 next year.
What does this mean?
For Central and South Auckland customers with non-seasonal based peak demands with small Power Factor issues could see overall network cost increases of greater than 9.5%. For a similar North or West Auckland customer being transitioned onto the time of use metered load group with demand charges this increase could be greater than 15%. (more…)
