GloBird Energy

Energy

WHOLESAVE FAQS

FAQ Wholesave

The nitty gritty – how WHOLESAVE works, examples and more

What are the costs involved in WHOLESAVE?

The below table lists the main charge types that make up the WHOLESAVE energy plan and will appear on your invoice.

Wholesale Usage This represents the price you paid to purchase electricity from the wholesale energy market, calculated based on your usage in each 5-minute interval after the effect of any Wholesale Caps you have purchased.
Peak + Offpeak These charges are the combination of other usage-based costs required to deliver electricity to your premises, including but not limited to:

  • Network Charges: fees that paid to cover the cost of delivering electricity to your premise via “poles and wires” infrastructure etc.
  • Market Charges: associated costs to participate in the market and supply electricity to customers. These charges cover the costs of operating the electricity market, including generation, transmission, and distribution.
  • Environmental Charges: related to various government environmental schemes like the Renewable Energy Target and state-based energy efficiency programs.
Daily Charge These charges are the combination of other supply-based costs required to deliver electricity to your premises
Wholesale Cap Charge The Wholesale Cap Charge is a combination of the Wholesale Cap Demand (you have chosen), the Wholesale Cap Fee and the Number of days on the bill.
Membership Fee The wholesale plan has a monthly membership fee. The fee is calculated as a daily rate for billing purposes.

What’s the upside?

WHOLESAVE is ideal for households that either:

  • Can shift when they use electricity.
  • Have a home battery or energy management system.
  • Want access to raw wholesale prices, even if they fluctuate.

What’s the downside?

Price volatility. Unlike traditional fixed-rate retail plans, wholesale prices change every five minutes and can spike dramatically. In extreme cases, they can go above $17 per kWh, whereas a standard retail plan might have a fixed rate of $0.30 per kWh.

Can the risk be that bad?

Yes. Here’s an example:
If you use a basic 2000-watt vacuum cleaner for an hour, you’ll consume 2 kWh of electricity.

Vacuum Graphic 1

  • To keep this example simple, imagine a standard fixed-rate plan has a usage rate of say, $0.30 per kWh, this would cost $0.60 (2 kWh × $0.30).
  • If the wholesale price was $17.50 per kWh, that same 2 kWh would cost $35.00.

That example is just one hour. Remember there are over 600 hours in a monthly billing period. While such extreme prices are rare, wholesale prices are unpredictable. Wholesale linked plans are only suitable for customers comfortable with the associated risks.

This energy plan is for sophisticated investors comfortable with the associated risk.

How can I manage risk?

One way to manage risk is buying a suitable Wholesale Cap. This allows you to limit the amount of your electricity usage (during each 5-minute interval) that is price capped. This means a portion of your usage is shielded from wholesale prices above the $2/kWh. In the graphic below, the customer selects a “Wholesale Cap” (the green line) at a level that suits their risk tolerance and usage profile. If spot prices spike above $2/kWh (blue line) this customer only pays $2kW for usage below their chosen cap demand. The remaining usage is charged at the spot price.

How does feed-in work?

The feed-in rate you’ll receive on the WHOLESAVE plan depends on where you are located, and the energy laws that are applicable in your area. As a general guide – the main differences are below:

In Victoria:
In Victoria the feed-in rate is $0.00/kWh

All other states:
When wholesale prices are above zero, you receive 90% of that price. When prices are negative, you pay the wholesale rate plus 10%..

To see specific rates for your meter – check our online signup page for a quote.

How does billing work?

Billing is based on the actual 5-minute usage data from your smart meter. On your invoice, the Wholesale Usage rate will show the weighted average price you paid for electricity based on the wholesale price and after the effect of any Wholesale Caps you have purchased.

WHOLESAVE customers can also see a detailed 5-minute breakdown of the Wholesale Usage charges via an export from the MyAccount self-service portal.

Am I Eligible?

This plan is not for everyone. To be eligible for the WHOLESAVE energy plan you must be:

  • a Business Customer with a valid ABN and the network tariff applicable to you or the Premises must be a business tariff; or
  • a Residential Customer who is a Sophisticated Investor: or
  • a Residential Customer who:
    • is not a retiree or pensioner.
    • is not a concession card holder nor otherwise entitled to any Centrelink, Veteran’s Affairs or other agency’s concession, rebate or service; and
    • has an equivalent annual gross income of more than $100,000 excluding any superannuation benefits at the Acceptance Date;
    • the meter at the Premises must be a smart meter with a reading interval of 30 minutes or less, and capable of being remotely read.
    • you must not have received any payment difficulties assistance, and have not been on any payment plan, in connection with any of your energy services in the 12 months preceding the Acceptance Date;
    • you must have agreed to receive communications from us electronically and in particular to us sending our bills to you by email (see further clause 1 of the Agreement Details and paragraph 19 below);
    • If you are a residential customer, you must have agreed to pay our bills by direct debit from your credit card which is identified on our website as acceptable for these purposes (see further paragraph 19 below)
    • there must be no person living or intending to live at the Premises who requires life support equipment (see further clause 3 of the Agreement Details and clause 25 of the Market Retail Contract Terms & Conditions).