If you are a commercial or industrial customer, you may have been encouraged to join a group deal. It will have been promoted as the cheapest way to buy electricity because a group of customers can pool their electricity and buy it in bulk. Right?
Wrong! The only savings you should make are on the consultants fees. This is the only area where savings are possible through using a single Request for Proposal (RFP) process rather than individual RFPs for each member of the group.
Why isnt electricity cheaper in bulk? Because in New Zealand electricity is sold at various points along the national grid, and the further you are from the point of generation the more it costs. For example, a customer in Gisborne will never have electricity as cheaply as a similar customer in Hamilton, not even with a group deal. It would only be cheaper if all the electricity went through one meter and there was one customer with one site who in turn distributed it to everyone else in the group at the same rate. Sounds impossible? It is!
Some consultants like to perpetuate this myth because it entices customers to join group deals or group RFPs more money for them under the false pretence that their electricity will become cheaper. It wont!
The best way to buy your electricity is via an RFP that canvasses all retailers who are likely to be interested in supplying you. Energy Veritas has the expertise to analyse and report on the various options that will be available to you and to recommend an option which, after discussion with you, best meets your needs.
This is a service offered by some consultants. It is built on the fear that your electricity expense requires expert checking every month because retailers get it wrong.
The truth is that only the first invoice at the beginning of a contract needs to be checked. If mistakes are going to be made it is at set up time. From here on the entire billing process is automated and in Energy Veritas experience it is seldom wrong. This is true of all the major retailers.
If you are really cautious, then having one bill checked each year is all you need. Lines companies do change their pricing once each year and this is manually changed in the billing systems.Do you have bill checking? How many invoices have you had that were reported to be incorrect? Is it worth the money youre paying? It is not a service that Energy Veritas offers.

