For our customers who buy GreenPower, the change to our GreenPower pricing from 1 July 2016 is going to have an impact on your electricity bill.
We want you to know why this is happening, and whilst we know it’ll have an impact on your hip pocket, it’ll also have an impact on the Australian renewable industry.
The price of GreenPower at Powershop
Powershop is a big supporter of renewable energy. Our parent company Meridian Energy owns and operates two wind farms in Australia, and we voluntarily offset all the carbon emissions associated with our customers’ electricity usage at no extra cost to our customers. We want to help increase the development of renewable energy generation in Australia and around the world.
Last year, the Government agreed on a fixed RET of 33,000GWh by 2020 and since then, the price of LGCs has steadily increased. This is good news, because it means the energy produced by renewable projects in Australia is worth more.
When the price of LGCs goes up, the cost of GreenPower does too. When the RET was agreed, Powershop didn’t pass the increased cost of LGCs onto customers and our GreenPower premium remained at 6c/kWh (incl. GST).
From 1 July 2016, Powershop will be selling GreenPower at 8.8c/kWh (incl. GST). This may seem like a big jump, but we’re now making sure that the price of the GreenPower certificates we sell accurately reflects the true market cost.
If you purchase GreenPower packs, this affects you as the overall GreenPower premium has gone up. However, 100% of this cost flows through to help increase renewable generation in Australia – which you’ve chosen to support.
What exactly is GreenPower & why should I buy it?
GreenPower is a voluntary government accredited program that allows Australians to displace their standard electricity usage with certified renewable energy, which is added to the grid on their behalf. Check out our handy picture below for how it actually contributes to the renewable industry and read this blog for more on GreenPower.
What are LGCs?
LGC stands for Large Scale Generation Certificate. One LGC is equal to 1MWh of eligible renewable electricity generated above the power stations baseline (most power stations have a baseline of 0%). Essentially, LGCs are used as electronic ‘currency’ and are traded by eligible parties, such as Mt Mercer Wind Farm (a generator) and Powershop (a retailer), the price of which varies according to supply and demand in the market.
If you have any concerns or questions, please get in touch.