Victoria Prices 2022
Why have my energy rates changed on August 1?
Each year the network distributors (who own and manage the electricity infrastructure) obtain Government approval from the AER (Australian Energy Regulator) to re-set their annual distribution charges.
Energy law states that price increases in Victoria must occur on a fixed day – one month after the network’s re-price. In Victoria the electricity networks reprice on 1 July each year and retailers like GloBird therefore reprice specifically on the 1 August.
As a result, most Victorian electricity customers will likely see their annual price change on the 1st of August 2022. The good news is that this means you shouldn’t see any more changes to your electricity price until August 2023. The recent wholesale cost of electricity has changed. To learn more about this visit our blog.
Why have my rates gone up?
We adjust your energy rates in line with network and wholesale costs. If these costs are higher, we must pass on the cost. The recent wholesale cost of energy has changed significantly. As reported by the ABC on the 29th April 2022 “Australia’s wholesale energy prices rise by 141% adding to cost of living pressures”.
Although GloBird have absorbed as much of this price increase as we can, we cannot avoid passing on the cost to consumers. To learn more about this visit our blog.
The good news is that this means you shouldn’t see any more changes to your electricity price until August 2023.
How do wholesale prices impact my bill?
Before GloBird customers get their energy we must buy it from the wholesale market, and this energy is transmitted using the infrastructure owned and managed by your local network. The networks are responsible for the grid infrastructure and for distributing power across the network and the wholesale price of energy is out of our control.
It is both these wholesale costs, and the networks charges that make up the vast majority of your energy bill. The below graphic was taken from the ACCC’s “Inquiry into the National Electricity Market report” available for download from the ACCC website. It shows the breakdown of costs based on a typical residential bill.
The yellow bar indicates retailer margin. The majority of the bill is made up of wholesale and network costs.
Recent local and world events have caused wholesale power prices in Australia to more than double compared to last year. To get a better understanding about what has happened, you can read more here, here, and here.
Is GloBird still the best provider for me?
GloBird proudly won Mozo’s consumers choice awards four years running – in 2017, 2018, 2019 and again in 2020. Better still, we won the 2021 Canstar award for “Outstanding Value” for Vic, NSW, and SA and the Most Satisfied Customers Award (National) in 2022. In fact, a few weeks ago we also received another Mozo award.
If you’re with GloBird, you are with an independent, award winning, and local energy provider. We don’t have lock-in contracts or exit fees, instead we offer competitive rates to keep our valued customers loyal.
With so many offers on the market, we can’t make the claim that we are always the cheapest, but our rates have commonly and consistently been among the best rates on the market. To do this, we concentrate on the costs we can control, we keep our operating costs to a minimum, and our margins are razor thin. However, we can’t control the underlying cost of energy. When the wholesale cost of energy increases, it impacts the entire sector across the board.
What can I do to save more?
Ultimately, the best way to control your energy costs is to manage your usage. A list of energy saving tips is available below.
Electricity How Can We Save Energy In Our Homes?
We always want to make sure you’re on the most cost-effective plan, you can contact us at any time to check your plan. Email CS@GloBirdEnergy.com.au.