Using Granular Data to Tackle Energy Price Volatility in Hotels
Taking Control of Complex Energy Costs
Managing operational costs is a constant priority for hotel operators, and energy expenditure sits high on that list. In today's world, however, simply focusing on reducing overall kilowatt-hour (kWh) consumption is often not enough. Increasing energy price volatility and the prevalence of complex utility tariffs, including Time-of-Use (TOU) rates, peak demand charges, and varying capacity costs, often with regional nuances, add significant layers of financial risk and complexity.
At Augos, we understand these challenges intimately. We provide not only the essential visibility into your energy use but also powerful tools designed specifically to help you navigate complex tariffs, ensure billing accuracy, and actively manage demand for maximum cost-efficiency.
The Challenge: Beyond kWh to Cost, Complexity, and Accuracy
Fluctuating wholesale energy prices and intricate tariff structures make accurate budgeting extremely difficult. High energy use during peak tariff periods, or exceeding specific demand thresholds even briefly, can lead to disproportionately large charges on your monthly bill.
Furthermore, the very complexity of these bills increases the potential for errors – are you always certain you're being charged correctly according to your contracted tariff and actual usage? Relying solely on the utility provider's bill without independent verification leaves potential savings and crucial cost control opportunities on the table.
Augos Solution Part 1: Unmatched Visibility into Consumption Patterns
Effective cost management starts with understanding precisely when and where energy is consumed. Augos delivers this foundational visibility:
- Granular Data: Our platform captures detailed, real-time consumption data, typically down to 15-minute intervals or less, creating a clear picture of your property's load profile 24/7.
- Peak Demand Identification: Easily pinpoint the times of day and the specific equipment or operations contributing most significantly to costly peak demand charges.
Augos Solution Part 2: Ensuring Billing Accuracy with Bill Verification
With complex tariffs applied to your detailed usage, how can you be sure your utility bill is accurate? Augos provides a crucial safeguard:
- Automated Reconciliation: Our integrated Bill Verification software allows you to input the details from your municipal or utility provider's bill. The system then automatically compares the billed amounts against the precise consumption data measured by Augos meters during the corresponding period.
- Discrepancy Flagging: The software highlights any discrepancies, whether in measured consumption, applied tariff rates, or calculation errors, providing a full reconciliation report. This empowers you to confidently query inaccuracies with your supplier, ensuring you only pay for what you verifiably used under the correct tariff conditions.
Augos Solution Part 3: Optimising Your Tariff Structure with Our Engine
Are you confident you're on the most cost-effective tariff available for your property's unique usage pattern? Augos helps answer this critical question:
- Data-Driven Analysis: Our powerful Tariff Optimisation Engine analyses your detailed historical consumption data (captured accurately by Augos) against our extensive, multi-year database of available regional utility tariffs.
- Cost-Effectiveness Comparison: The engine calculates what your energy costs would have been under different available tariff structures (considering TOU rates, demand charges, fixed costs, etc.). It then clearly identifies whether your current tariff is optimal or if switching to an alternative could yield significant annual savings based purely on your demonstrated usage profile.
Augos Solution Part 4: Enabling Smart Demand Management Strategies
Armed with unmatched visibility, verified billing, and an optimised tariff structure, Augos data enables proactive demand management:
- Informed Load Shifting: Identify energy-intensive but flexible operations (e.g. laundry cycles, pool heating schedules, electric vehicle charging banks) and confidently reschedule them to lower-cost off-peak tariff periods, guided by real consumption data.
- Peak Demand Control: Utilise Augos' real-time monitoring and Smart Triggers to set alerts notifying staff when consumption approaches expensive peak demand thresholds, allowing for timely manual or automated load shedding actions to avoid punitive charges.
- Optimised Plant Operation: Fine-tune the start-up and shutdown sequences of major plant (like chillers or boilers) to align precisely with changing tariff periods, minimising operation during high-cost times without impacting guest comfort.
Benefits: Taking Control of Energy Expenditure
This integrated approach delivers substantial advantages:
- Direct Cost Reduction: Achieved through selecting the optimal tariff, managing peak demand effectively, shifting load, and correcting billing errors.
- Improved Budget Accuracy & Predictability: Reduces the financial uncertainty caused by volatile prices and complex billing.
- Mitigated Financial Risk: Lowers exposure to price spikes and punitive charges within complex tariff structures.
- Empowered Cost Management: Shifts your team from passively paying bills to actively managing energy expenditure based on data and intelligence.
- Operational Efficiency Insights: Understanding detailed load profiles often reveals broader opportunities for energy efficiency improvements.
Conclusion: Intelligence is Power in Volatile Energy Markets
Successfully managing hotel energy costs today requires intelligence that goes far beyond simply tracking total kWh. It demands visibility into complex usage patterns, tools to ensure billing accuracy, strategies for tariff optimisation, and the ability to proactively manage demand.
Augos provides this comprehensive suite of capabilities, delivering not only the foundational granular data but also specialised software tools for Bill Verification and Tariff Optimisation. We empower you to move beyond reactive bill payment and take informed, proactive control of your energy expenditure in an increasingly complex and volatile market.
Contact Us
Ready to gain true control over your energy costs through data intelligence? Contact our team by email: info@augos.io or call: +27 87 093 6174 to learn more about our comprehensive energy management solutions.