How Les Mills Slashed Energy Penalties and Regained Control
If you’ve ever been surprised by a massive energy bill, chances are you’ve fallen victim to network demand charges. These costly penalties based not on how much energy you use, but when you use it.
For many facilities, especially gyms, data centres, schools, and commercial buildings, the real problem isn’t energy use itself, it’s how HVAC systems are programmed. Poor scheduling, simultaneous equipment starts, and lack of demand awareness can trigger peak usage periods that send costs soaring.
That’s exactly what was happening at Les Mills, until they brought in IES Automation.
In this article, we break down how smart HVAC reprogramming and energy analytics helped Les Mills cut penalties, reduce peak demand, and reclaim control of their energy costs, and how your building can do the same.
What’s Causing These Penalty Charges?
You might assume your energy bill reflects how much electricity your facility uses, but for many commercial sites, a large portion of the cost actually comes from when you use it. This is where network demand charges come in.
These charges are based on your highest 15–30-minute electricity usage window during a billing period, not your total energy use.
This means one even badly timed equipment start-up (like multiple HVAC systems turning on simultaneously) can trigger a months-long penalty. For many facilities, HVAC systems are the biggest culprit, often accounting for 30–50% of peak demand (Deng & Wang, Applied Energy, 2020).
Common causes include:
- All HVAC zones starting at once each morning
- No coordination between large systems (e.g. chillers, AHUs, fans)
- Legacy or standalone control systems not accounting for variable occupancy
- Set-and-forget programming that ignores actual load profiles
Without proper analytics and load forecasting, you’re flying blind, and the utility company isn’t forgiving.
This Is More Common Than You Think
According to a 2023 report by the Australian Energy Regulator, demand charges can make up 30–60% of the electricity bill for large commercial consumers in some states. Yet many facility managers don’t realise their HVAC scheduling is at the heart of the issue.
How Les Mills Turned Energy Penalties into Cost Savings
These kinds of demand-related costs aren’t just theoretical, they’re real, recurring, and costly for many commercial buildings. Les Mills, a globally recognised fitness brand, found this out the hard way when their Christchurch facility began incurring significant penalty charges due to high energy demand during network-controlled periods.
At first, the issue seemed like an unavoidable byproduct of running a large, active facility. But under the surface, two core inefficiencies were driving unnecessary costs:
The Problem: Hidden Energy Drains and Poor HVAC Control
According to Facility Manager Ben Keys, two challenges were putting pressure on operations:
1. High Power Usage and Demand Spikes
- Demand peaks during controlled periods triggered substantial penalty charges from the network supplier.
- Simultaneous operation of rooftop units, air curtains, fans, and sauna systems created large, short-term demand surges.
- Poor load distribution made the facility highly reactive — not responsive — to energy signals.
2. HVAC Programming Inefficiencies
- Ineffective scheduling led to HVAC systems running when they weren’t needed.
- Systems lacked integration and automation, leading to inconsistent climate control and wasted energy.
- Manual programming made it hard to adapt operations based on real-time usage patterns.
This led to increased operating costs, poor energy visibility, and missed opportunities for optimisation, all while trying to uphold a high-performance environment for clients and staff.
The Solution: Smart Automation with Real-Time Load Control
To tackle both challenges, IES Automation designed a tailored smart building strategy that aligned perfectly with Les Mills’ sustainability goals:
Installed a Load Management Receiver
This allowed the BMS to receive live signals from the energy provider, dynamically adjusting equipment like rooftop units and saunas during control periods.
Implemented a Load Shedding Routine
Instead of everything turning on at once, systems were staggered intelligently to reduce peak loads while maintaining comfort.
Reprogrammed the HVAC Logic
BMS schedules were restructured for real occupancy patterns, ensuring systems weren’t running unnecessarily — especially during low-traffic hours.
The Results: Quantified Savings and Carbon Reductions
The impact was immediate and measurable:
- Peak Demand Dropped from ~135 kVA to ~97 kVA (Winter 2024 vs Winter 2023)
- A 28% reduction during control periods, significantly lowering penalty risk.
- 21% Reduction in Overall Electrical Consumption
- $4,000 Saved in Annual Penalty Charges
- Lower Carbon Footprint
By consuming less energy during peak times, Les Mills not only reduced costs but also decreased strain on the grid — a win for sustainability.
- Member Experience Maintained
Comfort and indoor air quality remained consistent, proving that efficiency doesn’t require compromise.
projected year on year savings: 21%
To anyone considering IES, have a look and compare to your existing systems. We made the cost of the new system back within a 2-3 months just from gaining full control of our system. My experience working with IES was great. They will go the extra mile, often in the HVAC industry you either get a mechanical expert or a BMS expert. IES are my go to trouble shoot any faults as they have the knowledge of the entire system.
– Ben Keys, Facility Manager, Les Mills Christchurch
A Story of Partnership
What made this project successful wasn’t just the technology, it was the partnership.
From day one, Les Mills’ team was actively involved in the process. Facility Manager Ben Keys brought clear goals and insight into the site’s operational challenges, while IES Automation brought the tools and expertise to solve them. Together, we aligned on a shared vision: reduce costs, optimise comfort, and deliver on sustainability.
That alignment made all the difference, and turned a complex energy challenge into a long-term success story.
What This Means for Other Buildings
Les Mills isn’t an outlier. If your facility uses large HVAC systems, operates on tight schedules, or hasn’t reviewed its BMS recently, you could be paying thousands in avoidable energy penalties — just like they were.
You may be at risk if:
- HVAC starts all at once
- You get surprise demand charges
- BMS programming hasn’t been updated in years
- Systems don’t respond to occupancy or load signals
And the fix? It’s not about replacing equipment, it’s about smarter control.
Studies show smart load management can reduce peak demand by up to 30% (Applied Energy, 2020).
Final Takeaway
IES helped Les Mills cut demand by 28%, reduce energy use by 21%, and save $4,000 a year — all through smart programming and automation.
If you’re facing similar challenges, we can help you do the same.
Reach out for a building performance check — and stop paying for wasted energy.