You may have seen recent media coverage about changes in electricity prices.
At least once every twelve months, electricity retailers review and update their prices as the costs of providing electricity change. According to the Australian Competition and Consumer Commission’s (ACCC) market report 2023, the average Australian household electricity bill is made up of:
The Essential Services Commission (ESC) in Victoria recently announced price decreases to the Victorian Default Offer (VDO) from 1st July 2024. The Australian Energy Regulator (AER) has also released the latest Default Market Offer (DMO) which is the maximum price retailers can charge customers on standing offers in New South Wales, Queensland and South Australia from the 1st July 2024.
It’s important to understand that the Victorian Default Offer and Default Market Offer decisions are independent of retailers’ decisions to set their market offer prices.
We set our prices and feed in rates based on the wider market, ensuring that we are competitive and have only one set of prices for our customers with and without solar – we believe this is the fairest way to operate as a retailer, with a single plan for all customers.
Yes, we do source more electricity from renewables than our customers consume.
There are many factors that impact the price we buy electricity at, including the timing of supply and contract structures. These factors are all influenced by the broader wholesale electricity prices.
With the Australian energy generation mix still heavily dependent on fossil fuels and the penetration of renewables still relatively low, our wholesale electricity prices continue to be influenced by global fossil fuel trends.
As per CSIRO and AEMO’s GenCost 2023-24 report, the best way to put downward pressure on energy prices for households and businesses is to help ramp up investment in renewables.
The wholesale electricity price during the middle of the day is often very low and sometimes negative due to excess electricity being available. This low wholesale electricity price in the middle of the day reduces the value of excess solar electricity spilled to the grid from solar systems of homes and businesses.
Each year the ESC in Victoria also sets a minimum feed-in tariff that retailers must pay which is reduced this year to 3.3 cents/kWh.
We are aware of some electricity offers that may provide higher feed in credits. In some cases, the high feed in credits may be subsidised by higher grid electricity rates. Whilst the higher feed in rates may seem impressive, we encourage customers to review the whole offer, including grid electricity rates and discounts.
Our customers with solar receive the same grid electricity rates and discounts as those that don’t have solar.
We believe that the best way customers can get the most value from their solar systems is to use as much electricity from the solar system as possible, rather than paying a premium for grid electricity.
We have a range of tips to help customers understand their usage in order to save energy and save on their bills.
Customers can also set up regular instalment payments to pay ahead with bill smoothing and payment plans.
For customers that need assistance with payment, we have tailored support available. We strongly encourage anyone in need to contact us so we can help.
