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 increase. For example if you joined in late 2016 you may not have had any price increases for more than a year and your new rates will likely be higher now because power prices have gone up. However; depending on where you live, your tariff type, 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 fixed daily charge (sometimes called the supply charge) and a usage charge which you pay 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 increase has mainly been driven by a jump in the wholesale price of energy. And an increase in market volatility which has pushed financial instruments to become more expensive. Financial instruments (like options) are used by retailers to protect against volatile market fluctuations. 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 price change will be high. 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 you had a 10 cent rate to start with.
Do all retailers change their prices at the same time each year?
It’s very common for energy retailers to re-price around the same time each year, usually around 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 competitors 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. 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 don’t have lock in contracts, so we won’t just change your price unless we absolutely have to. 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. Thankfully the federal government are currently looking at solving the issue. Please let us know if you have any questions. You can contact us on 1300 456 247 or CustomerService@GloBirdEnergy.com.au