by RichardGardiner | Sep 18, 2013 | Energy
Seventeen 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.
by RichardGardiner | May 29, 2013 | Energy
A 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
by RichardGardiner | May 29, 2013 | Energy
When 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.”
by chris | Apr 22, 2013 | Energy
When you’re in opposition talk is cheap. Last week’s announcement by the Labour/Green combo David Shearer and Russel Norman does beg the question why the previous Labour Government didn’t take this course of action when they were in office for nine years.
Compounding this anomaly is the fact that for whatever reason, power prices rose faster during those Labour-controlled years (1999 to 2008,) than they have done over the past four years. Cynics amongst us will also remember that the well-above-budget financial performance of the leading energy companies Genesis, Mercury and Meridian during the Dr Michael Cullen era made a significant additional financial contribution to the NZ Government’s coffers.
Labour seem to be conveniently glossing over the fact that distribution charges are unaffected by this proposed change and that these charges have been responsible for a good percentage of recent price increases.
With the newly-proposed market model it is likely that the much-needed investment in infrastructure would be halted or delayed. Without market forces at play, poor prospects of gaining return on investment would discourage companies from financing infrastructure improvements. This was witnessed during successive governments from the late 1980’s to late 2000’s, as a result Transpower and some of the generators are now playing catch up – ironically this has resulted in the increased costs that the Labour/Green alliance are now proposing to combat.
From an industry point of view, the real problems with New Zealand’s electricity are: (more…)
by chris | Mar 20, 2013 | Energy
Larger Time Of Use (TOU) Vector customers with an existing reactive load problem could get caught on the hop by new electricity charges due to come on line next month. This cost increase will also impact on the electricity retailer’s medium-sized and small business customers.
The Power Factor (PF) charge, designed to penalise poor power practices, currently stands at 3c/unit of reactive power (kVArh). This charge will rise to $2.00/unit from April 1st 2013 and then by a further $6.00 to $8.00/unit by next year. These increases bring their customers into line with standard industry charges say Vector.
The maths: A small company currently paying $14 per year in PF penalties will be paying over $900 in 2013 and more than $3,600 per annum from 2014 onwards.
Why increase the Power Factor charge?
This ‘new’ charge is not price gouging. It is a necessary measure to fine-tune New Zealand Inc. for productivity and to optimise the power supply network. Many of the lines companies around New Zealand have been applying this PF penalty for years as have almost all larger electricity clients in Auckland.
Poor power practices create an artificial load on the supply system. The current charge of 3c per unit is levied on reactive power that is more than 5% out of alignment. The charge is specifically aimed at customers who draw power in ways that creates an artificial load on the supply system through poor practices. It is effectively a tax on laziness.
What can you do to minimise charges?
The simplest way to improve Power Factor is to install a Power Factor Correction unit at your site. The wrong capacitor for the job is possibly worse than none at all so should be a professional job, not a DIY.
For more information and independent advice on the best PF charge solution for your business, contact TUMG on 09 576 2107 .
by chris | Mar 20, 2013 | Energy
Power Factor can be likened to carrying a plank through a door. If the plank is lined up, it will fit through a regular door without hitting the frame, but if the plank is taken through side on, you’ll need a wider door or you’ll cause damage. Our supply network is designed as a regular door and the PF penalty is to pay for the damage caused by all those bumps.
From a more technical point of view, power factor is the measure of how effectively electrical power is being used in the conversion of current to work. The higher the PF, the more effectively electrical power is utilised. Unused power migrates back and forwards generating heat and wasting some energy. The energy wastage is not that significant in itself, but the extra capacity cost sits with Vector. The PF penalty is designed to make users aware of the unnecessary losses and costs in the supply of power.
For more information and independent advice on the best PF charge solution for your business, contact TUMG on 09 576 2107 .
Seventeen 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.