How does our pricing work? How is this different to other energy retailers?
As a Powershop customer, you’ll see the prices in your account are quoted as c/unit as opposed to c/kWh. This is because your unit price is all-inclusive – it’s a combination of your energy rate and daily charge, including GST.
We do this so our customers see the full picture of what their electricity is costing them, and it also means our discounts are off all charges, not just the energy rate. Many other retailers only apply your discount to your energy rates and not the rest of the charges that make up what you actually pay.
How do we calculate your unit price?
To accurately calculate your unit price, we spread your daily charge over your average usage (using a three month rolling average). So for example, if your energy rate is 20c/kWh, and your daily charge is 100c/day, and you use an average of 10 units per day, you will be charged 30c/unit (20c/kWh + (100/10)).
There is a breakdown of this for each of the packs available in your online account. You’ll find it under Usage – Your rates.
Why does it change?
You might’ve noticed your unit price fluctuate occasionally. This happens when your average usage changes and therefore the daily charge component of your unit price is adjusting (see ‘How do we calculate your unit price?’ for this formula).
So if your unit price goes down, it means you’re using more electricity, and if it goes up you’re using less. As a general rule, you’ll find you use more energy and might see a change in your unit price during winter and summer because you’re more likely to be using heating and air-conditioning. But unless we’ve told you otherwise, prices haven’t changed.
Rest assured that if your unit price goes up (because you’re using less), your actual costs remain lower. You see the full saving of your lower usage but we have to spread the daily charge across a smaller amount of units.
What is a pack? How do these work? How are they worked out?
At Powershop we don’t have plans or lock-in contracts. Instead, we offer a range of packs to suit all types of customers and their energy usage.
In your online account and your smartphone app, you’ll notice Special Packs, Top Up Packs and Future Packs. Here’s a rundown on how each works.
- Top Up Packs:
These packs represent your guaranteed discount. Unless you tell us otherwise, we automatically assign the cheapest Top Up Pack as your default pack. At Account Review time we’ll use this pack for any outstanding usage. However, you can set any of these Top Up Packs as your default (including GreenPower options), simply head to Settings – Account Preferences and you’ll see the options in the drop down box.
- Special Packs:
There are a few types of Special Packs. Firstly there are the ones that are always in your shop, like the Online Saver. The Online Saver provides you with the best possible discount that’s always available. To receive this discount, you need to log in to your online account or smartphone app and purchase your desired amount of units. This has to be done within the timeframe outlined in your Buy Now and Save More email to secure this discount in time for your Account Review. There is also an equivalent GreenPower pack available – the Green Online Saver.
The next type are ‘spot’ Specials. These are released every week or so, and are only available for a limited amount of time. They vary from 15% to 24% above the Standard Saver discount, however the discount is on a set amount of estimated usage. You’ll be notified when these come out via push notification from our smartphone app, Facebook or Twitter.
Sometimes they don’t look like much, but if you purchase them all, this works out to be a significant discount over the course of the year. This also includes GreenPower ‘spot’ Specials.
- Future Packs:
Future Packs secure a discount for a period of time in the future. The general rule is that the further out you are purchasing these, the bigger the discount. One primary difference with these compared to the other packs, is that the usage we use to calculate Future Pack prices is based on our estimate of usage during the period in which the pack will be used, not the three month rolling average that’s used in the other packs.
Also, sometimes these look more expensive than your current Special Packs (like the Online Saver). That’s because usage may vary in the period that these packs are covering. Future Packs are not for everyone and whether they will be worthwhile for you depends on your individual usage.
What happens if I purchase too much?
If you purchase too many units, we credit your account with the amount of any unused units once the pack expires. If you’ve purchased a lot of packs, here’s the order in which we use them:
- We use units set to expire first;
- if there is a clash, we then use units from a Special pack;
- if there’s still a clash, we then use the cheapest pack; and
- if there’s still a clash, we then use the pack that was bought first.
What happens if I want to refund my purchase?
If you’ve purchased units, and decide you want to refund them, you have 48 hours to do so – just head to Transactions in your online account and select ‘Refund’ under the relevant pack. If it’s outside of the 48 hours you’ll need to give the team a call.
If you need any more info about our pricing, comment below and we’ll be happy to help answer your questions.