Network tariff optimisation delivers cost savings

Are you on the right network tariff?

Understanding the wide range of network tariffs and what might be more suitable for your business’s needs and usage patterns could result in significant cost savings.

Last year, Shell Energy identified a total of $7.68 million in cost savings* for its large and small multi-site business electricity customers.

Shell Energy’s complimentary network tariff review, conducted annually for its business electricity customers, could save you considerable costs.

What are network tariffs?

Network tariffs are regulated charges set by the network distributor and approved by industry regulators to pay for poles and wires that deliver your energy.

These tariffs (also known as network charges) are passed through to large customers via their retailer. For our small multi-site business customers, depending on the chosen pricing structure, network charges may either be passed through separately or form part of the retail tariffs and charges.

Given that network charges comprise on average around 41% of the total energy bill for large customers^, the potential cost savings from assigning the best tariff for your business are substantial.

How is my business charged for use of the network?

Tariffs set by the network distributor are based on your business’s broader energy usage and patterns but don’t always take into account more complex factors. A detailed review of your energy usage may identify a more suitable tariff.

Network tariffs are regulated by the Australian Energy Regulator (AER) and revised by individual network operators each year. Even if the tariff stays the same, it is possible that your business’s energy use has changed, so there is never any harm in reassessing. You can change your network tariff once every 12 months.

How can I change my network tariff?

Shell Energy offers complimentary network tariff reviews for its electricity customers. Under the Shell Energy Network Tariff Optimisation program, expert analysts interpret your energy data within the complex rules of tariff eligibility, matching your historical use to recommend the most cost-effective tariff available to you.

Our team of experts will do the hard work for you, compiling a detailed report including potential cost savings and recommendations. Should a tariff change be recommended, you simply need to agree to the change and we will do the rest.**

To be eligible for the program and to receive the most accurate recommendation, your business must have been a Shell Energy customer for a minimum of 12 months.

For more information, speak to your Shell Energy account manager or contact us.

Important note: If your business has been impacted by COVID-19, it is important that the recommendations are checked thoroughly as network distributors will only accept one tariff change request per year. If the tariff selection does not reflect your expected usage, you may incur additional charges. Our review is based on historical usage data and current tariffs. Your historical usage may not be reflective of your future usage and tariff pricing may change. If a network tariff change is approved by the distributor, you may be locked into the new tariff for a period of time. Please consider future usage before proceeding with the request to change tariffs.

*Estimated savings identified by Shell Energy’s Network Tariff Review Optimisation program for C&I and SME multi-site (excl. Victoria) customers in the 2021 tariff reviews. Actual savings will vary depending on customer usage and network charges.
^Based on Shell Energy’s customer billing data for the last 12 months.
**Network tariff eligibility requirements apply, and changes are at the discretion of the distributor. Shell Energy does not guarantee that the distributor will accept a request to change the network tariffs. Our recommendations are based on your business energy consumption for the 12 months immediately prior to the review.