Noticed a bump in your electricity AND gas bills recently? You’re not alone. Record wholesale prices across the majority of states has been passed to customers from the retailers thanks to a multi-directional range of issues spanning from government disinterest to international conflict. But how does this differ between the states? Let’s dive in to analyse how your state might be affected for better or for worse, and what you can do about it.
By comparison to the rest of the market, NSW and QLD have felt the pinch the most. Generally speaking, retail contracts in NSW have increased 177% over the last nine months, spelling significance especially for larger energy users, or those who feel powerless to bring their energy needs down. If you are coming out of your energy contract in 2022, expect to see a peak rate increase from around 8c to 20 - 25c.
What can be done? While we always recommend renegotiating a contract during a low market, some things cannot be helped, and a renegotiation may still keep you off of costly default rates. Having a chat with us about your next contract can soften the blow, and also introduce you to a range of energy optimisation tools that ensure you are doing your best to manage the peak.
For businesses keen to lessen their dependency on such a volatile market, now is an ideal time to talk (or return to a discussion) about commercial solar for your business. More affordable and cash flow positive than it has been in years, you may be pleasantly surprised by what a strategic system can save you in the long run, while also making your business greener.
VIC AND TAS
While not as dramatically hit as NSW or QLD, we have still seen an average of 176% increase in contracts over the last nine months. This buffer can be attributed to renewable generation across the two states picking up the demand and offering some surety as coal power stations continue to plan for closure. For context, if a business that entered a new contract in October 2021 waited to arrange their new contract now, they would need to spend an additional $105,000 for the same power.
Such is the power of strategic procurement: Reach out today for a no obligations conversation with our team for a comprehensive look at your energy management needs, and know you have an expert on your side to help you lock in the agreements that may make significant differences as the market continues to ebb and flow.
What came first, the high price of gas or the high price of electricity? As a gas dependent state, the recent shortages and redistribution have seen a flow on affect of higher electricity rates as the state shifts its demand between the two. As the third worst impacted state in the National Energy Market, some contracts expiring in 2022 are seeing increases as large as 280%, with the general average increase of 186% in the last 9 months. For those coming out of contract, this looks like a peak rate increase moving from 5c to over 19c.
We strongly encourage SA businesses to get in touch with a Choice Energy expert to offer not only options but also clarify this particularly nuanced increase. As our brokering team work with both gas and electricity, it is essential to consider how best to manage the pair and weather the current storm.
If flooding and crisis wasn’t enough, Queensland has seen a retail contract rate increase of around 231% in the last 9 months, taking out the top spot for most expensive market. Akin to NSW businesses, expect a peak rate jump from around 8 cents to 20 - 25c and beyond, depending on your area. For Ergon area businesses, your choice of retailer is of course limited, meaning it is even more essential to ensure you are as optimised as possible.
Our brokering team goes beyond simply negotiating rates, and will look at your business energy bills in a comprehensive way, taking into account your tariff and your daily energy use timing to ensure you are not being stung with unnecessary extra costs. Likewise, metering and monitoring ensures your business is paying what it should for energy - recent analysis has revealed 1 in 6 Choice Energy customers were paying more than they should have for energy, only picked up upon thanks to our vigilance.
Likewise, a lack of control encourages a market that can take things into their own hands. Strategic commercial solar with Choice Energy means designing a system designed to reduce your dependency on costly, unpredictable grid energy, and instead become your own source of clean energy. As our sunniest state, it makes sense to revisit or consider - reach out to our solar team here for a no obligations chat.
Ready to reach out for a no obligations conversation about your energy needs? Call us on 1300 304 448 or contact us directly here.