It’s no secret that the cost of electricity has been on the rise over the last few years, and we know that this is a real concern for our customers.
If you’re a Powershop customer in NSW, it’s likely that you’ve recently received an email from us letting you know that from 1 July 2016, the price of power is going up.
We know that this is hard news, so we wanted to let you know why this is occurring and give you some info on how you can help reduce your usage and keep your electricity bill affordable.
What’s happening in the NSW electricity market?
Two things are happening. Firstly, distributors are putting up their network charges. These are the daily fees charged as part of your unit price and are charged to cover the cost of the electricity distribution network. This includes things like the maintenance of the poles and wires that transfer electricity, metering and meter reads, outages and safety and more.
Secondly, the wholesale cost of electricity has gone up. This is a bit harder to explain so we’ve put together this handy graph to help.
As you can see, the price for which we purchase electricity from the National Electricity Market (NEM) has been steadily rising. The NEM is where retailers (like us) purchase the electricity that we sell to our customers.
A shift in market behaviour across the NEM – which you can see in the very squiggly line (particularly in the last 11 months) – has caused the Spot electricity price to be more volatile which translates to higher wholesale prices.
What is Powershop doing to help?
We want to remain a competitive retailer in NSW, bringing our customers the fairest price we can. We have an unwavering policy towards pricing fairness so all our NSW residential customers have access to the same discount rate (our Online Saver pack) – which we’re putting up to 18% to offset some of the cost of the electricity increase – because we don’t play favourites (you’re all our favourites).
Our rates are still competitive in the market, but so that we can keep operating as an innovative electricity company and ruffle a few feathers in the industry (and keep the other retailers honest), Powershop has had to increase the cost of electricity in line with the increase in wholesale prices and network charges.
What can you do to save more?
Other than simply using less electricity (which happens to be great for your pocket and the environment) here are a couple of ways you can save with Powershop.
For every mate you switch over to Powershop, you both score a $75 power credit once they’ve switched. We have some customers that haven’t paid for power for over a year!
If you haven’t already, don’t forget to download our free smartphone app (available for iOS and Android) to keep on top of your usage, plus it makes it easier to grab great discounts and our spot specials.
In NSW, electricity meters are read every three months, which means your bill is sometimes based on an estimate of your usage. But with Powershop, you can enter your own meter read in the Powershop app and online account, so your usage and what you pay for it is more accurate.
If you have any concerns or questions, please get in touch.