Insights from Choice Energy's Work with the Australian Steel Institute
In recent years, energy costs have become a major operational pressure for Australian manufacturers. For businesses in the steel sector — many of which are highly energy-dependent — rising prices can significantly impact competitiveness and profitability. Recognising this, the Australian Steel Institute (ASI) has partnered with Choice Energy to provide its members with practical strategies to better manage their energy use and reduce costs.
Through this partnership, Choice Energy has worked with more than 25 ASI members, helping them collectively save over $1 million on their energy bills. These outcomes have been achieved through a mix of tailored energy procurement support and commercial solar installations designed to match each business’s needs.
One Australian Steel Institute member—an established national player in the steel industry with operations across South Australia, Victoria, New South Wales, and Queensland—has seen significant benefits from Choice Energy’s strategic, site-specific approach.
With multiple locations and complex operational needs, managing energy costs effectively was critical to the business’s bottom line. Choice Energy conducted a comprehensive energy assessment across several sites, including the company’s Wacol facility in Queensland.
The assessment revealed the site was eligible to transition from a small to a large market energy contract. By switching to an unbundled agreement, the business is now saving approximately $48,000 annually over a three-year period.
In late 2024, Choice Energy further supported the customer by negotiating competitive rates for their remaining eight large market sites. Several smaller sites were also reviewed, revealing projected annual savings of $40,000, ensuring competitive rates are now secured across the entire network.
Australia’s Changing Energy Landscape
Australia’s energy landscape has undergone major changes in recent years. Wholesale electricity and gas prices surged between 2021 and 2023, driven by global disruptions, supply constraints, and domestic infrastructure issues. Although some temporary price relief has occurred since, the market remains unstable.
Choice Energy’s July 2025 Energy Market Update noted that wholesale electricity prices in southern states had eased slightly due to improved generation availability. However, in the northern regions, prices have begun climbing again, driven by network congestion and gas market tightness.
In parallel, the July 2025 Large Market Gas Update highlighted the challenges still affecting the gas sector, including high export demand and slow progress in bringing new domestic supply online.
For steel manufacturers and associated industries, this means that energy prices remain an ongoing risk. Waiting for markets to return to pre-2020 conditions is not a viable strategy, instead, taking proactive steps to manage contracts, reduce grid exposure, and lock in known costs has become essential.
The work that Choice Energy has done with ASI members focuses on precisely that. Whether it’s conducting an energy audit, benchmarking rates, or designing commercial solar systems, the aim is to help members make informed decisions based on data and market conditions — not guesswork.
Each site and business is different. That’s why solutions are tailored. Some businesses benefit most from improved procurement outcomes, others from on-site generation, and many from a combination of both. Meaningful savings and improved energy predictability can be achieved when strategy and technology are aligned.
Looking ahead, market signals suggest that volatility will continue. Factors such as delayed transmission projects, global energy uncertainty, and ongoing gas constraints are likely to keep upward pressure on prices. Manufacturers that have taken steps to secure more stable and sustainable energy arrangements will be in a stronger position, not just financially, but operationally.
For ASI members, understanding what options are available and how others in similar sectors have responded is an important starting point. While each business has unique requirements, the results seen so far including more than $1 million in total savings across ASI members — highlight what’s possible when energy is approached strategically.
To unlock opportunities or to simply see what current position you are in contact Choice Energy’s Head of Partnerships Alex Townsend on 0435 080 646 or email him at alex.townsend@choiceenergy.com.au
