How to get the best energy contract at any time

Webinar presented on 22/05/19 hosted by
Matthew van der Linden
CEO
The future of energy procurement
How to get the best
energy contract at
any time
Bianca Beebee
Inside Sales Manager
Aidan Moore
Senior Portfolio Analyst

The best energy contract + 22 May 2019 + Page 2
Introductions
→ More than 20 years working with
businesses to save them on energy
bills
→ Spends large amount of time
coding
Matthew van der Linden
Founder/Director
→ Years of experience managing
large sales and service teams.
→ Owner of two dogs and a cat,
who are all named after musicians
Bianca Beebee
Inside Sales Manager
Aidan Moore
Senior Portfolio Analyst
→ Years of experience in Australian
and European energy market
→ Endurance sport enthusiast

Making sure you always have
innovative ways to access fair rates
and find efficiency savings fuels us.
Flow Power is a licensed retailer
providing wholesale electricity.
We’re reshaping how Australian
businesses experience energy, so
they can have real power when it
comes to their energy.

Overview
1. Market overview
2. Introduce Power Active
3. Reshaping how you buy power
4. Next steps
5. Questions

Market overview

The risk of
volatility
What we see in the market:
+ Majority of businesses come out of
contract towards the end of the
financial year or end of the calendar
year
+ Businesses coming off low rates and
receiving higher priced offers
+ Many businesses are open to new
options
The opportunities:
+ New retailers providing alternatives
to traditional fixed-rates
+ Abundance of wind and solar
entering the market
+ New technology changing how users
experience energy
Opportunities in the market

Factors impacting energy contract prices
Generation
1
2
3
4
5Weather
+ Water storage
+ Coal and gas prices
Policy and regulation
Network and transmission
Timing

How energy contract prices are set
+ Spot price varies due to differences in
supply and demand and is settled every 30
minutes
+ The futures market is where contracts are
traded, and where retailers and
generators hedge against any spot market
price variation

Trends in the futures market
50
60
70
80
90
100
110
$/MWh
VIC ASX Futures Prices
+ The market expects that
prices will drop in the future
FY- 2020 FY-2021 FY-2022

What’s happened recently
+37% increase
May 2018 to March 2019

Introducing
Power Active

You might be stuck paying fixed-prices for energy
+ These rates are set by retailers and are inflexible, regardless of how your business uses
energy now or in the future.
+ These contracts also ignore what the energy market rates might be like down the line.

The risk of
volatility
Financial PPAs
A new way to purchase energy
Billed Rate c/kWh = Contract Rate (ASX Energy) x Price Efficiency Factor + Retail Mark-up + Active
Option access fee (optional)
Firm rates with some flex
Power Active gives you the flexibility to
influence your prices or tap into lower rates
Power you can see
We believe in transparency. Power Active
provides visibility into the prices that you pay
and how these are set
Leave it with us
You don’t need to do anything different, but
Power Active lets you find value in changes to
consumption patterns
Proven Performance
Over the last 15 years, two-year Power
Active rates could have outperformed
standard retail rates by up to 15%

The energy market is moving…
+ With the Active Option, you have the flexibility to unlock a lower
rate if the market rate drops.
+ If the market remains the same or goes up, don’t worry because
your rates have already been locked in
Let’s have a look at how this works…

Getting the best outcome with Active Option
*Chart courtesy of ASX Energy futures, 07 December 2018

Added control over your price
Price Efficiency Factor
+ A measure of how your business
uses energy relative to the rest of
the market
+ Rewards you for energy efficiency
and energy management

Power Active can be used with renewables
+ Our Corporate Renewable Power Purchase
Agreement (PPA) are a combination of wind
and solar power
+ Power Active can be used as the balance of
supply in a Corporate Renewable PPA

Reshaping how you
buy power

Meet Daniel. He is the operations manager for a
business in NSW.
He went to market for a new energy contract and
found rates had increased, impacting the retail
offers he received.
These offers were significantly higher than he
expected and could fall in the future.
So, he turned to Flow Power and signed onto a
two year Power Active agreement, adding the
Active Option to minimise timing risk.
Jan 2017
Feb 2017
They receives fixed
rate offers from
retailers for 200%
more
Goes to market
They find
Flow Power
Contract begins
They begins looking
for alternatives
Flow Power
finds a solution
that matches
their needs to
renewables
July 2017

By late May 2017, the rates for financial year
2018 dropped by 5%.
The Active Option moved Daniel onto a 2%
lower rate after the access fee was deducted.
By the same time the next year, market rates
had fallen again and the Active Option moved
him to an 18% lower rate.
Seeing the savings, he re-contracted early for
FY20, which protected the business against a
20% increase in rates.

The outcome
On Power Active Daniel saw results:
Savings achieved
Year One FY 18
Year Two FY 19
Avoided market increase 20% for FY 20
FY 20 20%
2%
18%
PPA savings
Year Two FY 19 23%*
*If PPA covers 50% of the load

Next steps?
If you would like to join in give us a call
1300 08 06 08

How to get the best energy contract at any time

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