Frequently Asked Questions on TCFD Reporting

•What is TCFD reporting and why is it important?

TCFD (Task Force on Climate-related Financial Disclosures) reporting is a framework developed to help companies disclose climate-related financial risks and opportunities to investors, lenders, and other stakeholders. Its importance lies in promoting transparency and providing comprehensive information on how climate change impacts an organization's financial health, enabling better-informed decisions and encouraging climate-conscious investment.

•What are the four key areas of focus within the TCFD framework? The TCFD framework focuses on four key areas: Governance (how an organization's governance structure handles climate-related issues), Strategy (the impact of climate-related risks and opportunities on the business model, strategy, and financial planning), Risk Management (the processes used to identify, assess, and manage climate-related risks), and Metrics & Targets (the metrics and targets used to assess and manage relevant climate-related risks and opportunities).

•Who is required to comply with TCFD reporting in Australia, and when are the deadlines? In Australia, entities required to report under Chapter 2M of the Corporations Act will be phased into TCFD reporting based on certain criteria. Group 1 entities, those meeting two of three thresholds (over 500 employees, over $1 billion in consolidated gross assets, or over $500 million in consolidated revenue) or that are a 'controlling corporation' under the NGER Act and meet the NGER publication threshold, must begin reporting from 1 January 2025. Group 2 entities (over 250 employees, over $500 million in consolidated gross assets, or over $200 million in consolidated revenue, OR entities required to report under Chapter 2M of the Corporations Act that are a 'controlling corporation' under the NGER Act and meet the NGER publication threshold.) must begin reporting from 1 July 2026. Group 3 entities (over 100 employees, over $25 million in consolidated gross assets, or over $50 million in consolidated revenue, OR entities required to report under Chapter 2M of the Corporations Act that are a 'controlling corporation' under the NGER Act) must begin reporting from 1 July 2027.

•What are the main requirements for TCFD reporting? Companies must integrate climate-related risks into their governance and strategy, develop a systematic risk management approach for identifying and mitigating these risks, and disclose relevant metrics and targets, including greenhouse gas emissions, energy usage, and reduction targets.

•What are the benefits of adopting TCFD reporting beyond regulatory compliance? Beyond compliance, TCFD reporting enhances transparency, improves risk management by identifying and mitigating climate-related vulnerabilities, can improve access to capital by making a company more attractive to investors focused on sustainability, and creates a competitive advantage by demonstrating a commitment to long-term resilience.

•How can a company like Termina support businesses with TCFD reporting? Companies like Termina can help automate emissions reporting, streamlining data collection and eliminating manual data entry errors. They also offer automated energy management tools to optimize energy use, reduce costs, and ensure compliance with TCFD guidelines. Furthermore, they provide comprehensive support and expertise throughout the entire reporting process.

•What are the primary challenges faced by Australian businesses managing energy across multiple sites?

Managing energy across multiple sites in Australia presents several challenges. These include dealing with diverse energy suppliers, navigating varying rates and tariffs, keeping track of invoices from different sources, ensuring accurate billing, understanding equipment energy costs, and staying compliant with emissions reporting requirements. These complexities often lead to energy management taking a backseat, potentially resulting in higher costs and inefficiencies.

•How does Termina help multisite businesses reduce their energy costs?

Termina helps multisite businesses reduce energy costs through several strategies: by negotiating the best rates with all energy suppliers, validating every bill to prevent overcharges, monitoring energy contracts monthly to ensure businesses always benefit from the lowest available rates, providing detailed insights into equipment energy costs without extra hardware, and simulating energy upgrades for better ROI. Termina is paid only when it saves the client money.

•How does Termina simplify invoicing and emissions reporting for multisite businesses?

Termina simplifies invoicing by consolidating invoices from various suppliers into a single, easy-to-understand format. For emissions reporting, Termina provides clear and comprehensive reports, making it easier for businesses to track their emissions and comply with relevant regulations.

•What is energy bill validation and how does Termina ensure its accuracy?

Energy bill validation involves scrutinizing energy bills for errors and discrepancies to ensure businesses are only paying the correct amount. Termina's automated systems are used to catch billing errors and discrepancies, and the company handles disputes with suppliers on behalf of its clients to resolve any issues.

•How does Termina provide insights into equipment energy costs without requiring additional hardware?

Termina offers detailed insights into equipment energy costs by leveraging existing data and advanced analytics, eliminating the need for businesses to invest in and install extra hardware. This helps businesses track expenses, stay on budget, and identify opportunities for savings related to equipment energy usage.

•How does Termina assist businesses in evaluating the potential benefits of energy upgrades or electrification projects?

Termina can simulate the impact of energy upgrades or electrification projects, helping businesses understand the potential return on investment (ROI) before committing to these initiatives. This enables them to prioritize the most cost-effective and environmentally friendly options.

•What was the outcome of Termina's collaboration with the Pharmacy Collective?

Termina's collaboration with the Pharmacy Collective resulted in significant cost savings, amounting to over 15.7% on their annual energy costs. This was achieved through analyzing their energy usage and negotiating new contracts. Termina continues to review their energy contracts monthly to ensure they're always benefiting from the lowest rates available in the market. In addition, Termina handles all aspects of their energy needs, including billing accuracy and reporting usage anomalies.

FAQ

How does Termina help businesses compare electricity prices?

Termina simplifies business electricity price comparisons by analyzing energy usage patterns, sourcing quotes from multiple providers using group buying power and industry relationships, employing advanced comparison tools to account for price, fees, contract length, and tariff options, and offering ongoing monitoring and automatic switching to better deals. Termina also offers tailored solutions and expert support to ensure that each business gets the best plan for its needs.

What factors does Termina consider when finding the best electricity rates for my business?

Termina considers a business's location, energy usage patterns (when and how electricity is used), tariff configurations, and unique circumstances to recommend tailored solutions. This includes understanding equipment costs and the potential for electrification. Termina also factors in hidden fees, contract length, and tariff options when making comparisons.

What is the difference between fixed and variable electricity rates, and how do I choose the best option for my business?

Fixed-rate plans offer price stability for a set period, ideal for businesses prioritizing predictable costs. Variable-rate plans fluctuate with market conditions, potentially offering savings when prices fall but also carrying the risk of unexpected increases. The best option depends on a business's risk tolerance, cash flow needs, and ability to manage price fluctuations. Termina analyzes specific circumstances to recommend the most suitable plan and reviews rates monthly.

What happens after Termina helps me sign an electricity contract?

Termina's service doesn't end after a contract is signed. Termina continuously monitors the market for better deals and automatically switches rates when beneficial, ensuring businesses are always on the best available deal.

Why is it important to regularly compare business electricity rates?

Energy costs can be a significant business expense, and prices fluctuate. Regularly comparing rates ensures businesses avoid overpaying and can capitalize on better deals as they become available. Termina's automatic switching further simplifies this process.

What are the benefits of using Termina compared to other energy brokers?

Termina offers a comprehensive approach that goes beyond simple rate comparisons. This includes analyzing energy usage, leveraging group buying power to access exclusive rates, providing transparent cost overviews, offering ongoing monitoring and automatic switching, and delivering tailored solutions with expert support.

Is there a one-size-fits-all solution for business electricity plans?

No, Termina emphasizes that there isn't a one-size-fits-all solution. Even businesses with similar usage profiles may require different plans due to factors like distribution network and tariff configuration. Termina provides tailored solutions based on individual circumstances.

How can I get started with Termina to find better electricity rates for my business?

Businesses can request a quote from Termina to begin the process. Termina's team will then analyze their needs and start the process of finding the best electricity rates for their business.

Termina: Simplified Energy Procurement for Australian Businesses

What is Termina and how does it simplify energy procurement?

Termina is a service designed to simplify energy procurement for businesses. It leverages real-time market analysis, a network of energy suppliers, and group buying power to secure the lowest possible energy rates. Termina automates price comparisons, streamlines accounts, and provides transparent reporting to minimize the administrative burden and costs associated with energy management.

What types of businesses can benefit from Termina's services?

Termina caters to businesses of all sizes, from single-location operations to those managing multiple sites across Australia. Their services cover electricity, gas, LPG, and embedded networks, making them suitable for a wide range of industries and energy needs.

How does Termina ensure that businesses get the best possible energy prices?

Termina constantly scans the energy market and automatically switches businesses to the lowest available prices. This real-time price comparison eliminates the need for businesses to manually contact multiple retailers, ensuring they always secure the most competitive rates.

What are the key benefits of using Termina for energy procurement?

The key benefits include real-time price comparisons, nationwide coverage, leveraging group buying power for lower prices, easy-to-understand reporting on energy usage and carbon emissions, and a significantly reduced administrative burden.

Does Termina support renewable energy procurement?

Yes, Termina is at the forefront of helping companies procure renewable energy while managing costs. They offer features for optimizing GreenPower plans, sourcing Power Purchase Agreements (PPAs), and tracking emissions.

How does Termina help businesses with renewable energy procurement?

Termina helps businesses with renewable energy procurement by automatically securing the most competitive GreenPower pricing, sourcing PPAs tailored to their specific needs, automatically ingesting bill data for instant usage and emission tracking, and providing carbon emission reporting tools. They also offer equipment cost modeling to simulate the costs associated with electrification.

What kind of reporting does Termina provide to businesses?

Termina provides transparent reporting on energy usage and carbon emissions. This reporting simplifies carbon accounting with automated reports and allows businesses to easily track their energy performance and meet sustainability goals.

How can a business get started with Termina?

Businesses can easily get started by requesting a free savings estimate. This estimate will provide insight into how much the business could save by using Termina's energy procurement services.

Termina: Energy Management Solutions for Business Cost Reduction

FAQ

1. Why is a business electricity price comparison important, especially now?

Energy costs significantly impact a company's profitability, particularly in industries like construction, hospitality, healthcare, and retail that use substantial electricity. With rising energy prices and a growing emphasis on sustainability, businesses need to actively manage their electricity costs to stay competitive and improve their bottom line.

2. How does Termina's approach to energy management differ from a simple price comparison platform?

Termina offers a holistic energy management solution, not just a price comparison. It leverages group buying power to secure below-market prices and provides ongoing insights into energy consumption. This helps businesses identify inefficiencies, optimize usage, avoid peak costs, and implement strategies for long-term cost reductions and streamlined operations.

3. Can you provide examples of how Termina has helped businesses reduce energy costs and emissions?

Yes. Duratec, a construction company, reduced energy usage by 14% and overall emissions by 20% by gaining detailed energy insights, comparing electricity prices, identifying inefficiencies, and choosing Greenpower options. Betty's Burgers saved an average of $2300 per location across over 50 locations, and 12 hours of admin per month, by streamlining account transfers through Termina's automated site management platform. Baker's Delight reduced energy costs and emissions by modeling oven replacements using Termina's tools. Coffee Club saved more than $100,000 with Termina as well.

4. How does Termina tailor its energy management solutions to different industries?

Termina understands that energy needs vary across industries. Its platform offers tailored solutions for construction (managing energy across multiple sites), hospitality (tracking energy use and reducing peak hour costs), healthcare (cost-effective and reliable energy plans), and retail (simplifying energy management across multiple locations). By offering industry-specific solutions, Termina ensures that each business's energy strategy is optimized for its unique requirements.

5. What is "group buying power" and how does Termina use it to benefit businesses?

Group buying power refers to the ability to negotiate better rates with energy providers by pooling together the energy demands of many different sites. Termina leverages this by combining hundreds of sites across Australia, allowing them to secure savings typically reserved for larger enterprises. This gives smaller and medium-sized businesses access to more competitive energy rates.

6. How does Termina's business model differ from traditional energy brokers?

Termina operates on a commission-free model, meaning their only incentive is to lower your costs. Traditional brokers may prioritize their own commissions when recommending energy plans. Termina is committed to the business’s long-term success, demonstrated through comprehensive energy insights and ongoing optimization tools, further differentiating itself from traditional brokers.

7. What types of insights into energy data are available to businesses on Termina's platform?

The Termina platform provides detailed energy insights that enable businesses to compare electricity prices, identify inefficiencies, automate energy data capture, and make better energy decisions. It also automates account administration, like opening and closing sites, saving significant time and resources. The platform offers visibility into energy usage, enabling businesses to monitor and optimize consumption.

Business Energy Plan Optimization: A Termina Guide

1. Why is it important for businesses to carefully choose their energy plan?

Choosing the right energy plan can significantly impact a business's bottom line. Tailoring the plan to a company's specific consumption patterns and operational needs can lead to substantial savings and prevent unexpected cost spikes, allowing businesses to focus on their core operations.

2. What are the key factors a business should consider when selecting an energy plan?

Businesses should consider rate types (fixed vs. variable), contract terms and flexibility (including early termination fees), and opportunities for green energy initiatives. The best choice will depend on the business's energy consumption patterns, risk tolerance, and sustainability goals.

3. How does Termina's approach to energy management differ from traditional energy brokers?

Unlike traditional brokers who may prioritize commissions, Termina focuses on keeping clients on the lowest possible prices every month, based on their usage profile. Termina uses a savings split model and compares every offer on the market, not just those from a limited number of retailers.

4. What is the difference between fixed and variable energy rates, and how do businesses decide which is best for them?

Fixed rates offer budget stability, while variable rates fluctuate based on market conditions. The best choice depends on a business's risk tolerance and energy consumption patterns. If a business values predictable costs, a fixed rate might be preferred. If a business can adjust consumption during peak hours, a variable rate might offer savings.

5. How can a business incorporate sustainability into its energy plan, and what are the cost implications?

Businesses can opt for Greenpower plans to prioritize sustainability and meet ESG targets. While green energy plans are sometimes more expensive, savings achieved through Termina's model can be reinvested in Greenpower with no net increase in energy costs. Businesses may also reinvest savings in energy efficiency projects.

6. What are the steps involved in switching business energy providers, and how does Termina simplify this process?

Switching energy providers involves reviewing current contracts, negotiating new rates, and managing the logistical transition. Termina automates these steps, ensuring businesses avoid price increases and stay on top of market fluctuations.

7. What are the main benefits of partnering with Termina for business energy management?

Partnering with Termina offers benefits such as no commissions (aligning their success with client savings), data-driven insights for optimizing energy usage, and reduced administrative burden through a centralized management platform. This can save businesses time and money, allowing them to focus on their core operations.

8. How does Termina leverage group buying power to secure better energy rates for businesses?

Termina aggregates the energy usage of thousands of locations, negotiating better-than-market prices in many regions. This group buying power allows businesses to access lower prices than they might achieve individually.

Frequently Asked Questions: Gas and Electricity Tariffs

•What is an electricity tariff, and what are its main components?

An electricity tariff is a pricing structure determining how much you are charged for consuming electricity. The main components include: Fixed Rate Tariffs (a flat fee per unit), Time-of-Use Tariffs (variable rates based on peak, off-peak, and shoulder periods), Demand Tariffs (charges based on peak electricity demand), a Supply Charge (daily fee for grid connection), and a Metering Charge (fee for meter maintenance).

•How do Time-of-Use tariffs work, and who can benefit from them?

Time-of-Use (ToU) tariffs vary electricity prices depending on the time of day. Peak periods (daytime/evening) have higher rates, while off-peak times (overnight) are cheaper, with a shoulder rate in between. Businesses that can shift energy-intensive activities to off-peak hours can significantly reduce costs using ToU tariffs. Examples of Time-of-Use tariffs include T12, T33, or T31.

•What is a Controlled Load Tariff, and what type of appliances is it suited for?

Controlled Load Tariffs, like T31, apply to specific appliances, such as water heaters or pool pumps, that operate during off-peak hours. Energy consumed by these appliances is charged at a lower rate, allowing businesses and homes to reduce costs by scheduling their use during low-demand times.

•What is a Demand Tariff, and why would a business choose this type of tariff?

A Demand Tariff, commonly listed as T20, charges businesses based on their highest power demand during a billing period, in addition to their regular electricity usage. Businesses with large or variable power needs, such as factories or large offices, often use this tariff to monitor and manage peak energy demand to lower costs.

•How do electricity tariffs typically appear on an electricity bill?

An electricity bill typically shows a breakdown including a daily Supply Charge (a fixed fee), Usage Charges categorised by time of use (peak, off-peak, or shoulder rates), and potentially solar export credits. The bill will also specify the period the charges cover, the price per unit (kWh), and the total amount due for each component. Government relief credits may also be listed.

•How does a gas tariff work, and what is the difference between seasonal and non-seasonal gas rates?

A gas tariff determines how much you pay for the gas you consume, typically measured in megajoules (MJ). Seasonal gas rates are higher during winter due to increased heating demand. Non-seasonal rates remain consistent throughout the year, which can benefit businesses with steady gas usage.

•How do gas tariffs typically appear on a gas bill?

A gas bill usually includes a daily Supply Charge for connection and Usage Charges based on peak (winter) and off-peak (non-winter) consumption. The bill breaks down the charges by period, price per MJ, quantity consumed, and the total amount due, often separating charges into "steps" to account for varying rates after certain thresholds are met.

•How can Termina help businesses optimise their energy tariffs?

Termina offers automated monitoring and proactive tariff recommendations. They analyse a business's energy usage data to identify savings opportunities and facilitate tariff changes. This simplifies the tariff selection process, ensuring businesses obtain the most cost-effective energy plan.

Here is an 8-question FAQ based on the provided source:

FAQ: Impact of Gas and Electricity Price Changes on Small Businesses

•What are the key findings of the Energy Consumers Australia SME Retail Tariff Tracker?
The tracker reveals rising energy costs for small businesses. Electricity bills for those consuming 20,000 kWh increased by an average of $520 (8%) between April 2023 and April 2024, while gas bills rose by 7%. Fixed supply charges, particularly in Western Australia, have also increased.

•How do rising energy costs affect small businesses?
Rising energy costs negatively impact profitability, particularly when there are significant price spikes. Increased fixed supply charges add further financial pressure, making effective cost-saving strategies essential.

•What strategies can small businesses employ to manage rising energy costs and improve efficiency?
Businesses can adopt energy-efficient practices such as optimising equipment, using smart monitoring tools, and reducing overall energy consumption. A centralised platform to manage energy accounts can also help identify efficiency opportunities.

•What is Termina and how does it help small businesses deal with fluctuating energy prices?
Termina is a company that helps small businesses manage rising energy costs by automatically keeping them on the lowest prices available in the market. It leverages buying power across multiple locations to negotiate better-than-market rates, providing significant savings and financial stability. Termina also offers a centralised platform for managing energy accounts and provides dedicated account managers.

•How does Termina help businesses secure lower energy rates?
Termina negotiates better-than-market rates by leveraging the combined buying power of over 2,500 locations. This allows them to secure exclusive rates that are below standard market prices, providing financial relief to small businesses.

•How does Termina help businesses identify and implement energy efficiency measures?
Termina provides a centralised platform to manage all energy accounts, supported by a dedicated account manager. This helps businesses identify opportunities for energy efficiency and ensures they benefit from the lowest available prices.

•What are the benefits of using a centralised platform for energy account management, as offered by Termina?
A centralised platform streamlines energy account management, ensuring smooth and efficient operations. It helps businesses stay in control of their energy expenses, identify efficiency opportunities, and provides access to dedicated account managers.

•What is the overall conclusion regarding energy prices and small businesses in 2024?
Fluctuating gas and electricity prices pose challenges for small businesses, but solutions like Termina offer a way to regain control of energy costs, improve operational efficiency, and secure long-term sustainability in a competitive market. Businesses can turn energy challenges into opportunities by implementing proactive and technology-driven solutions.