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Why Choose Us?

Our service design - Why it achieves the best outcomes

Our service design is all about reducing all retailer margins and achieving the lowest possible energy prices for our clients. This is detailed in the various points below.
If you’re a purchasing manager and running the process yourself, you know that entering  a new energy contract can be a minefield – especially if you only do it every few years.

We are totally independent

Energy Price Solutions is totally independent and transparent. We receive no income from and have no ties to any energy retailers.
Instead, we research the entire market on your behalf. Without bias.
We work on a simple ‘fee-for-service’ model. This approach allows for economies of scale because fees are simply added to the metering charges on your bills. (We then recover fees from the meter provider.)

No commissions – Why commissions cause conflicts of interest

Unlike some energy consultants, we do not accept commissions. We just get you the best possible price.
Commissions are added to the raw energy rates of your contract, which increases the prices you pay. It also creates conflicts of interest:

  • All commissions in the large market are added to the raw energy rates, thus increasing the rates your business pays.
  • The higher the rates, the higher the commission, so there is a disincentive to drive to the lowest price.
  • There are times when market conditions indicate its advisable to go short, but long term contracts lock in broker’s commissions longer.
  • The larger the load, the bigger the commission.

No reverse auctions – Why they don’t achieve the best results

Other consultants may tell you that a reverse auction will help you secure the lowest prices for your energy contract. We disagree.
Put simply, when the winning retailer knows what their competition is offering, they have no incentive to offer you their floor price.

Progressive Purchasing – Our view of the strategy

Progressive Purchasing has become more widely used as a risk management strategy to try and overcome the highly volatile nature of the wholesale electricity market. However it is not without risk.

How it works:

  • A framework agreement is entered into for a fixed term, usually one or more years.
  • Instead of locking in your entire load at a fixed price, small parts of your load can be purchased separately, resulting in a different price for each quarter, while allowing you to benefit if the price drops.
  • Prices can increase rapidly, and when that happens near-term quarterly pricing, regardless of the quarter, can be the highest, so when that happens, you will pay more.
  • The entire load for each quarter has to be purchased before the start of the quarter, and a load weighted average of the purchases is used to determine the price for the quarter.

The Weaknesses of Progressive Purchasing

  • It makes forward budgeting very difficult as each quarter has a different price, which is not known until the entire quarter is locked in.
  • It’s guaranteed not to provide the lowest or the highest price, but an average price.
  • It’s hugely time consuming as there are many more decisions to be made.
  • Once a framework agreement has been entered into, it cuts out competition for future purchases during the contract term, and locks in full retailer margins.
  • It transfers the retailer’s risk to the end user, and when prices increase rapidly, this form of contracting results in higher prices.
  • The cost of service is considerably higher because of the large number of decisions needed, and typically retailers provide brokers with up-front and progress commissions for this product.
  • Hedging a year or more at a time is contrary to this strategy, so opportunities for lower prices will be lost in a rising market.

We were asked to compare the rates achieved for one of our clients, with the rates achieved by another consultant using a progressive purchasing agreement. The comparison was made for similar loads, during periods of high and low market volatility, over 3 years. We were transparent in our analysis and the savings we generated from our tendering process were $7,209,356 over those three years, compared to the other company using progressive purchasing.

We make it simple for you

With Energy Price Solutions, you no longer need to spend time getting your head around all the complex questions.
Is now the right time to enter into a new energy contract? If not, when? How do we know we are being offered the lowest market prices available? How exposed are we to market volatility? What is our optimal contract duration?
At Energy Price Solutions, we make it simple for you. With our guidance and expertise, you will be able to evaluate your options with clarity and confidence.

You retain control

We arm you with real facts and figures to help you evaluate your options objectively. You will be empowered to make an informed comparison – and take control over the final decision.

A responsive team to look after you

Energy Price Solutions has a strong client-focused culture and a highly skilled team of responsive professionals. We believe these attributes are just as important as having the right service design.
Our proven system of staff selection and training enables us to consistently deliver quality service at every step.

We access daily data – The many advantages of having data

Access to interval meter data takes the guesswork out of the retailer’s energy pricing process – your first step towards securing a low price.
Energy prices are load-shape specific. But with access to daily meter data, we are able to increase the ‘speed of business’ – and avoid the costly delays in waiting for data in a rising market.
We arm you with real facts and figures to help you evaluate your options objectively. You will be empowered to make an informed comparison – and take control over the final decision.