Major change in Network Charges for Auckland

About TUMG 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…)

New NZ/Australian Energy Alliance forged

Energy Advice logoTotal Utilities Management Group, New Zealand’s leading independent utilities procurement and energy management company has entered into an alliance with Australian company EnergyAdvice to deliver Trans-Tasman energy management, procurement and energy efficiency solutions for large energy users in New Zealand and Australia.

“Large organisations wanting to take a ‘whole of company’ perspective on energy and carbon management and reporting are looking for companies with a combination of global reach and local expertise to assist them,” said Total Utilities Managing Director Richard Gardiner.

“It is this need for country-specific expertise that has driven our Trans-Tasman alliance with EnergyAdvice.  The relationship allows us to bring highly specific knowledge of local regulations and markets to our clients in the highly complex energy market.” (more…)

Vector & Powerco network customers – look for a drop in gas prices

TUMG Natural Gas PipelineBy now you should have received your October natural gas accounts.  If you are in the Vector or Powerco networks you should have seen a reduction in your overall cost of gas.  The ‘gas year’ runs from October to September and a raft of industry costs are reviewed annually ahead of October 1st.  Typically an inflation adjustment is passed through with metering, network and transmission charge changes applying.

The good news this year for most natural gas customers, especially those based in Auckland, is that the annual review should result in lower costs.  The Commerce Commission has enforced two sets of reductions – in transmission and distribution.  The change to transmission costs affects all customers. As such, the charging methodology and overall level of the charge has changed. (more…)

Seventeen Club NZ members cut electricity bills by an average $20K

Clubs NZ logo ex websiteSeventeen Clubs NZ members have saved a total of $362,000 on their power bills this year by handing their contract negotiations over to Total Utilities Management Group.  With an average saving of more than $21,000 per club over the two to three year contract term, members are more than happy with the service offered at a special rate to Clubs NZ by Total Utilities.

“I was astounded by the results we achieved by putting our power out to tender through Total Utilities,” said Hamilton Working Mens Club General Manager, Richard Shrubsall.

“All the relevant supplier offers were presented to me in a fully transparent report, written in plain English.  There were no hidden costs and all the comparisons were made on a ‘like for like’ basis.  The actual savings we achieved were outstanding.  I was so impressed that I have already highly recommended Total Utilities to other clubs.”

If you want to discuss your power costs with Total Utilities, call Linda MacIver on either 09 576 2107 or 021 886 034 or go to tumg.co.nz.

Want to cut your electricity bill? Join the Club…

Power-DollarA group of six clubs cut their energy bills by almost 20% – saving them a massive $175,400 – by handing their power negotiations over to Total Utilities Management Group.

Savings ranged from $18,500 to $54,400 on the contestable energy part of their Time Of Use (TOU) bills – which excludes fixed line charges.

The clubs ranged from North Island RSAs and Cosmopolitan Clubs to South Island Working Mens Clubs.  Steve Andrews of Manurewa RSA, who has a 13 year track record working with TUMG, saved 17% on his club’s electricity bill and fixed his power price until 2015.  Not quite the $80,000 rebate that TUMG had achieved for him a few years earlier, but still a saving worth having.

By taking the energy requirements of clubs out to market as a group, TUMG is able to negotiate great power prices.  Analysts then document and recommend the best supplier to suit each club’s needs and advise them on the most beneficial contract terms.

All the club manager has to do is supply one month’s electricity account details and TUMG does the rest.  Based on the average saving gained by this group of six clubs, TUMG’s fixed fee will currently be repaid in savings within two months of the new contract term – leaving the remaining 34 months’ savings to go straight into the clubs’ bank accounts.

Current market conditions are extremely good for Time of Use (TOU) pricing according to TUMG analysts.  “TOU pricing is holding at an unusually low level at the moment,” says TUMG’s Chris Hargreaves.  “Clubs have the opportunity to lock in pricing for the next three years by renewing their contracts– when TOU prices change, they can change quickly so our advice is to act now.”

Read more about Manurewa RSA & TUMG…

To talk to TUMG about your power contract pricing, call 09 5762107

To find out more go to www.tumg.co.nz

 

Club $80,000 power saving an ‘unexpected bonus’

RSA Logo ex RSA websiteWhen Steve Andrew first contracted Total Utilities Management Group to manage his electricity contract renewal he wanted to access cheaper power pricing.  He didn’t expect an $80,000 pay-back from two electricity companies – that was an ‘unexpected bonus’ according to the Manurewa RSA manager. 

Richard Gardiner of TUMG started to talk to Steve about the club’s electricity pricing around 13 years ago and Steve has used the independent utilities broker to renew his power contract and negotiate terms for the club ever since.

“TUMG analysts lay out all the options for me,” said Steve.  “They recommend the best electricity supplier every time we need to renew our contract and their advice has saved the club money every year.

“For the past few years, TUMG has handled our gas contract too.  We’re not a huge gas user but I reckon they cut our gas bill by 30-35% each month – that’s $200 a month we can spend elsewhere.”

About five years into the relationship, TUMG uncovered a billing error.  Manurewa RSA had gone through a major building renovation and the power company put in a new meter.  Unfortunately they forgot to de-commission the existing meter on the old site.

“We didn’t realise it at the time, but we were being charged twice over,” Steve continued.  “When TUMG realised what was happening, they worked out the exact amount over-charged and approached the two power companies concerned with a bill.

“TUMG handled all the negotiations on our behalf and the end result was $80,000 coming back to the club.  The power companies weren’t too happy about it but TUMG’s expertise got a great outcome for us – I’m not sure if I could have got the same result.”

As chairman of the Auckland Club Managers Group, Steve has been happy to recommend TUMG’s services to his fellow managers.  “There aren’t really any downsides.  TUMG charge standard fees which are soon more than covered by the savings the company brings.  It just makes sense.”