Energy costs have become a growing concern for Australia’s businesses everywhere, but especially for packaging and processing manufacturers. With rising wholesale prices and unpredictable market conditions, controlling operational expenses is now more important than ever.
One strategic way businesses are getting ahead is through forward contracting — a smart, proactive approach to managing energy costs.
What is forward contracting?
Forward contracting means locking in your next electricity or gas contract before your current one expires. By securing future energy rates in advance — often six to 18 months ahead — businesses can avoid being caught out by sudden market spikes and gain greater price certainty.
The important thing to note is that it doesn’t affect your current contract, the new contract will only begin once the old contract expires. This avoids having to pay any penalties.
A smarter way to stay competitive
Manufacturing and processing operations are energy-intensive. Any increase in electricity or gas prices can directly impact operational costs by the thousands.
With the current energy climate, we can see extreme volatility in energy prices, often making energy one of the highest expenses.
Secure today’s prices, protect tomorrow’s profits — forward contracting gives your business the stability it needs to plan ahead.
Forward contracting helps mitigate that risk by:
- Locking in competitive rates before market prices rise
- Providing cost certainty for better budgeting and forecasting
- Reducing exposure to unpredictable wholesale fluctuations
- Supporting long-term stability in an increasingly volatile market
Timing is key
The best opportunities often come when market prices temporarily dip. By keeping an eye on these movements, businesses can lock in their next contract at a more favourable rate. Even a few cents per kilowatt-hour can translate into thousands in savings over the life of a contract.
We typically see dips during off-peak periods, such as Spring or Autumn.
How Choice Energy supports APPMA members
As an APPMA partner, Choice Energy offers free energy assessments. These assessments will also include helping members navigate the complex energy market.
Our specialists monitor market trends daily and identify the best windows to forward contract — ensuring your business locks in the most competitive rates possible.
We believe manufacturers should focus on production, not price shocks — and forward contracting is one of the best tools to make that happen.
Send a copy of your recent energy bill into APPMA or directly to sudha.kandarpa@choiceenergy.com.au or call 0483 910 840 to access this APPMA member deal.
