Energy Prices – Current Observations

On Sep 5, 2017 by ghadmin.

Pricing Observations.  Volume is key when comparing energy prices.  The more you use the lower your price should be.

LPG:  (We always look at the Cost per litre delivered including the carbon tax as this is the real cost to you)

We are seeing a 26% increase from September 2016 to September 2017 – Month on Month.  What is a good price?  If you are paying more than 40c/lt you need to talk to your supplier (Those businesses only using LPG for cooking will be paying a much higher price)


There is very little difference in pricing here between all the major suppliers.  Individual businesses are not getting the lowest rates per kWh – those who engage with bulk buying providers can achieve lower rates.  Regular price benchmarking should take place between businesses that use similar quantities of electricity.  We look at the AUP – Average Unit Price = Cost (Excl VAT) divided by total units (Day plus night).  What is a good price?  A range from 11.5 to 14.5 c/kWh

Natural Gas

Another competitive market and again – similar volume users should be benchmarking their AUP.  What is a good price? A range from 2.5 to 4.0c/kWh.


Why are you still burning Oil?  It is the worst energy solution – switch and make substantial savings.  Those who switch today will jump a generation and could achieve up to 80% cost reductions

Real Cost Reductions

Good Practice advice is to tender out your energy annually – or lock in prices for no more than 2 years.

However, the real energy cost reductions come when you attack your consumption.  Up to 50% cost reductions can be achieved – 20% quite easily.    Work this out…do you know how much you spend on energy every year?  The average hotel spends c. €140,000 – 20% = €28,000 – 50% = €70,000  (Some hotels spend more than €300,000)

What increase in sales would you need to add that to your bottom line? can assist you in identifying where you can reduce energy consumption.  For those members with online meter reading (MCC10 on your bill) we provide a free annual Electricity Consumption analysis. Contact us to assist you.

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