For Australian SMEs, every dollar counts. As a CFO, you constantly look at the numbers, seeking efficiencies and managing risk. While labour and raw materials often get the most attention, energy costs can silently eat away at your budget. This is especially true when contracts are not managed well. 

Ignoring your energy contracts or treating them as a simple fixed cost is a mistake. It could cost your business when not managed properly. T Staying on top of your energy agreements means protecting your bottom line. It also means potentially finding big savings.

Let's look at what CFOs need to focus on regarding energy contracts this year.

Beyond the Headline Rate: Understanding True Costs

When you look at an energy contract, it's easy to focus only on the advertised price per kilowatt-hour. But the true cost of your energy involves much more than just that number.

• Tariff Structures: Are you on a flat rate? Or do you have different charges for peak, off-peak, and shoulder periods? Does the contract include demand charges? Termina can help you optimise your tariffs based on how your business uses energy so you’re getting the lowest bills possible.
• Network Charges: A big part of your bill comes from transmitting energy through poles and wires. These charges vary by region and can be substantial. Your contract should clearly show how these are passed on.
• Environmental Levies and Market Fees: Various government schemes and market operation fees are also part of the total. Understanding these less obvious items is part of comprehensive Utility Bill Management. Don't just pay the total; understand what makes it up.
• Contract Terms and Conditions: What are the early exit fees? Are there rules for price reviews? When’s the best time to recontract? These details might seem small now, but they can have big financial effects later.

A contract from a retailer or broker that looks cheaper at first might hide higher overall costs. This happens if its structure does not match your business's specific energy usage.

Leveraging Data for Smarter Negotiation with Termina

You can't negotiate effectively if you don't know your own energy story. CFOs need to push for strong Energy Data Management practices within their organisations. Termina provides the tools to do this.

• Accurate Consumption Data: How much energy are you using, and when? Detailed data on your usage patterns can show opportunities for savings and give you power in negotiations. This is especially vital for multisite energy operations. Termina's ability to consolidate energy accounts across all your locations gives you a powerful, single view of your total energy spend.
• Asset Performance: Do you have an asset register that links energy consumption to specific equipment? Knowing this means you can ask potential retailers about prices that better suit your specific operational needs. Perhaps you need better rates during certain hours because of a key piece of machinery. This also ties into good Facilities Management practices, making sure your physical assets work as efficiently as possible.
• Tariff optimisation:Termina leverages your usage patterns to determine the right granular tariff structures to lower your energy costs. This proactive utility management approach avoids being stuck with an unsuitable deal.

Without solid data, your energy procurement becomes a guess. With Termina's data, you are armed with facts that lead to better outcomes.

The Strategic Value of Termina

In a complex market, trying to go it alone can be expensive. This is where Termina provides significant strategic value for a CFO. Termina acts as your energy buying group by grouping your sites with thousands of other locations across the country.

For CFOs, partnering with Termina is not an added expense. It's an investment that can lead to big, clear savings and greater financial control over a key operational cost.

Making Smart Energy Decisions in 2025 with Termina

In 2025, smart energy management for Australian SMEs means moving beyond simply paying bills. It needs a deep look into your energy consumption. It means using Energy Data Management tools like Termina. It means understanding contract details through careful Utility Bill Management. And it means approaching energy procurement strategically.

By focusing on these areas and using Termina's expert support, CFOs can turn energy costs from a big expense into a controllable, effective part of their financial strategy. Your business deserves a clear, cost-effective energy future.

‍