Why are my energy rates changing?
Each year we need to adjust your energy rates in-line with network and wholesale costs. The earlier you joined us the more likely it is that you will have a price change. For example, if you joined in late 2016 you may not have had any price change for more than a year. Consequently, your new rates will likely be higher now because power prices have gone up. However; depending on where you live, your tariff, and the time you signed up, you may see lower rates.
Why did my energy rates go down?
Your energy bill is made up of a daily supply charge, and a usage charge which you pay a rate per kWh for the power you use. Although network charges have been climbing steadily over the last ten years, recently some networks have halted this trend, some have even reduced charges. Where possible we worked these savings into your new rates.
Why did my energy rates go up?
The wholesale price of power has increased significantly since we set our prices earlier this year. The wholesale market has also been more volatile which makes hedging more expensive. Hedging is necessary to protect against market volatility.
As stable forms of power generation like coal fire are being replaced with intermittent generation like wind and solar, the wholesale market becomes more volatile. The federal government are currently looking at ways to solve this market issue.
Why does my price increase seem so high?
The wholesale and hedging cost of power has gone up as much as 8 Cents per kWh depending on when you signed up. The earlier you signed up the more likely your rates will have risen. Price changes affect people differently, it can depend on how low your rates were to start with. For example an 8 cent per kWh increase may seem high if your original rate was only 10 cents.
Do all retailers change their prices at the same time each year?
It’s very common for energy retailers in Victoria to re-price around the same time each year, usually December or January. However, this can vary from company to company. Keep this in mind if you look to compare prices at this time of year, always check that you are comparing our new price with our competitor’s new price. Shopping around during December or January makes it difficult to compare apples to apples.
Will the percentage change be the same for all retailers?
Higher power prices are an Australia-wide issue at the moment. An increase on the wholesale market can make the price change seem bigger for the companies with the lowest rates. For example, if a retailer sells power for 30 cents per kWh, and GloBird’s rate is 20 cents for the same tariff. Let’s say both companies increased their rate by exactly 6 cents per kwh. The more expensive company will show a 20% increase, whereas the less expensive company will show a 30% increase. The important thing to look at is not the percentage change. What matters are the actual rates you pay.
How can I be sure the price rise is a true reflection of the actual cost of power?
GloBird doesn’t have lock in contracts, so we won’t just change your price unless we absolutely have to. It is simply not in our interests to do so. The higher price of power is an Australia-wide issue right now. Click here to listen to a recent audio interview between the Guardian Australia’s political editor Katharine Murphy as she talks to the chairman of the ACCC (Australian Competition and Consumer Commission) about what’s going on with Australian energy prices. We have also written a number of blog posts on the subject click here.
As always, GloBird will continue to be among the most competitive energy providers in the market when the dust settles and all Victorian energy providers release their new 2018 pricing. Please let us know if you have any questions. You can contact us on or CustomerService@GloBirdEnergy.com.au