A Landlord's Win: How a Property Owner Secured R85,000 Savings for Their Tenant
This commercial landlord energy management case study shows how property owner, Sidewinder, is projected to save their tenant R85,000 annually. Our expert analysis of the tenanted tyre retail business identified that their Notified Maximum Demand (NMD) was oversized and their tariff was sub-optimal, allowing the landlord to provide significant value.
The Challenge: An Inefficient Tenant Billing Structure
As a proactive property owner, Sidewinder needed to ensure the utility account for their tenanted facility was managed efficiently. Their tenant, a tyre retail business, was operating on a Miniflex tariff with a declared NMD of 140 kVA.
The landlord suspected this structure was not cost-effective, leading to unnecessarily high electricity costs being passed on to the tenant.
The Augos Solution: An Integrated Analysis for the Landlord
The Augos team conducted an integrated NMD and Tariff analysis service on behalf of the property owner. This dual approach is critical for tenanted properties, as both components are intrinsically linked.
NMD Analysis
Our experts analysed the tenant's historical demand data within the Augos platform. The data clearly showed that their actual peak demand never approached the 140 kVA contractual limit, meaning the account was consistently being billed for inflated fixed charges.
Tariff Comparison
Simultaneously, our team used the platform's Tariff Comparison Tool to model the tenant's consumption profile against alternative tariff structures, comparing their current Miniflex plan to the "Business" tariff.
The Result: R85,000 Annual Savings for the Tenant
The data-driven analysis provided a clear path forward. Our team provided the landlord with a two-part recommendation for their tenant's account, which included restating the NMD from 140 kVA down to 100 kVA and switching to the more cost-effective Business tariff.
By implementing both recommendations, Sidewinder was able to pass on R85,000 in projected annual savings to their tenant. This case perfectly illustrates how proactive energy management by a landlord can create significant value, making their property more attractive and strengthening the landlord-tenant relationship.
Landlord & Tenant Savings
For property owner Sidewinder, our expert analysis of their tenant's usage identified an oversized NMD and sub-optimal tariff, delivering R85,000 in annual savings for the tenant.
Key Takeaways
Integrated NMD and tariff analysis maximizes savings for tenanted properties
Proactive landlords can create significant value through energy management
Lower energy costs strengthen landlord-tenant relationships