Electricity customers in NSW who are on standard contracts are getting ready for cheaper electricity as government control on prices is being lifted. About 40% of the state’s customers, which comes to more than a million customers, will benefit from this decision. As a provider of electrical services on Sydney’s North Shore and Northern Beaches, the team here at Everest Electrical are watching how these developments will impact our customers.
The current situation
At present, the electricity customers on standard contract are billed according to prices set by the Independent Pricing and Regulatory Tribunal. As this regulation is removed, these customers will enter a transitional pricing arrangement from July 1, and households are likely to get a 1.5% price cut. Customers currently on market-based contracts will not experience price changes.
The regulatory pricing was originally intended to stop energy retailers from overcharging customers. But in the current highly competitive market, this regulation is proving to be unnecessary, according to a 2013 report by the Australian Energy Market Commission. The report stated that switching to a market-based contract could save households up to $400 a year in electricity charges.
The future
Other states, including South Australia, have deregulated tariffs and their consumers have experienced lower power prices – Adelaide’s reduced by an average of 1.8%. By the middle of the next year, the prices for NSW customers on the standard contract will be as per the customer price index. In the following years, a ‘default tariff’ will be offered to those customers still on the same contract and not wanting to switch to market-based contracts.
This deregulation is expected to allow for healthy competition, resulting in dropping of prices and better deals for consumers. Retailers will be forced to come up with more services and offers to attract and keep their customers. This could also see more retailers, coming into NSW – joining the big players – Energy Australia, Origin Energy and AGL.
Being aware of your options and the deals offered will help you in making an informed choice. Numerous websites allow you to compare the various rates and plans offered. Remember that you can choose either a standard retail contract or a market retail contract.
- In a standard retail contract, the prices will be set by the retailer – and can be changed once in 6 months – but there are no exit fees so that you can switch contracts any time.
- In a market retail contract, you will be charged market prices for electricity and the contract is negotiated between you and the retailer. Such contracts are of different fixed durations and exit fees might apply if you leave early.
Market contracts often cost less, and if you know how to shop around, you can often find special discounts.
Be proactive in lowering your energy bills
While the market prices or the prices offered by your energy provider are not in your control, as an informed customer, you can seek advice from our team here at Everest Electrical to proactively lower your electricity bills, including by switching to smarter lighting options and energy-efficient appliances.
As well, doing an energy audit and tracking the energy consumed by each appliance will help you in identifying the areas where you can reduce consumption. Usually, heating and cooling systems are the biggest culprits – and as the weather is getting colder, it might be the right time for a complete safety and energy efficiency inspection.
Here at Everest Electrical Services, our team is committed to helping you reduce your energy bills by offering you tips and advice on switching to more efficient lighting and appliances. We will also help you identify possible areas of improvement, repair any faulty power-wasting fixtures and replace inefficient appliances.
We do all electrical installation works including dimmer switches, LED and halogen down lights as well as upgrades and maintenance works.
We welcome your call on 0410 229 139 to discuss all of your electrical services needs.