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Reduce energy costs with 'future proofing'

Supplier News

EXIMO is using new technology to provide major power cost savings and increase productivity for clients purely through clever ducting engineering.

Eximo recently revamped its retail distribution and technical partner arrangement.

The company has identified electricity prices as the first hurdle to combat.

Eximo Sales and Marketing Manager (Asia-Pacific) Morris Short says the move is a new initiative they expect will save its client base considerably in operating costs.

"Ducting is a necessary conduit by which dusts, fumes and other matter is controlled and transported safely within the industrial workplace, yet planning and installation has never quite taken into account the vast sums of energy required to make it all work," said Mr Short.

"With electricity playing a large part in ducting's energy supply chain, we closely examined the market and uncovered that over the best part of a decade, electricity costs have slowly been rising - particularly on the eastern seaboard.

"This has been made clear by the National Electricity market Management Company (NEMMCO) in its VIC/SA Summer outlook.

"As a good representation of what business on the eastern seaboard can expect over the next 12 months, the NEMMCO outlook forecasts a steady rise at least until August 2006,” said Mr Short.

"It shows peak demand between November 2005 and March 2006 and a simultaneous reserve shortfall, a period where prices will be at their greatest.

"The clear message is that electricity, like commercial real estate, will never go down in price, yet industrial usage requirements will be on the increase."

The establishment of a Participant Advisory Committee (PAC) represents the formal process by which stakeholders can play a part in NEMMCO Board's decision-making processes.

The PAC provides the Board with assistance, feedback and information on the operation of the wholesale National Electricity Market (NEM).

The Committee consists of up to 15 members appointed from the nominations received by the Board. Nominations are at the level of Chief Executive Officer or Managing Director.

All industry sectors - generators, network service providers, market customers and retail customers - are represented on the Committee. Others with relevant experience in the electricity supply industry are also encouraged to register their interest.

"Just as importantly, the Electricity Supply Association of Australia (ESAA) document, Electricity Prices in Australia 2003/2004, projects that electricity prices in every state of Australia will gradually increase between 5%-10% by 2006/2007," commented Mr Short.

"With all this taken into consideration, we are working more closely with technical partners to better configure ducting solutions, implement the right components, and integrate these to see it all operate with optimised electricity consumption.

"We expect the gains to be significant across the entire industry spectrum - from food processing, agricultural and printing through to waste management, education, engineering and woodworking."

Apart from forecasting a significant increase in electricity prices in the coming years, the ESAA document also revealed the following:

* The doubling of electricity prices per kW hour in eastern seaboard states since 1997.

* Electricity prices are relatively low in regions where hydro and low cost coal resources are abundant and electricity networks are well connected, but prices are higher in areas where interconnected systems are relatively small and access to low cost fuel is limited (such as WA and Northern Territory and to an extent, SA).

* Wholesale electricity prices resulting from the trading of electricity in the national electricity market vary significantly over time.

"One thing is clear: an overriding factor for Eximo stepping up and taking responsibility to provide energy-efficient planning for customers," said Mr Short.

"By 'future proofing' a ducting system arrangement so that energy consumption is sensible, a major cost factor is bypassed and a leaner operation initiated.

"And to ensure total viability of our approach, the closer arrangement between Eximo, its technical partners and retail distributors streamlines the entire operation."

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