Where do you shop for your home/small business electricity?

You can buy peak electricity for 38 cents per kWh (before GST):

 

 

 

 

or 48 cents per kWh:

 

 

 

 

 

There is also pay on time discounts that can be 0%, 13%, 17% or 18% – this could be worth $110 (or nothing at all if you pay late) for this example.

Case study:

Let’s consider a typical family of four (John and Jane with two kids Jack and Jill) with an old-fashioned water electric storage heater (300L) and no solar on the roof.

Jane checks the bill and including GST it’s for 1165 kWh peak electricity at 41.8 cents, 563 kWh for controlled load (hot water heating at night in Jane’s case) at 24.2 cents and a daily supply charge (91 days) at 91.3 cents a day. The bill is $700 for the quarter and with the 12% pay on time discount it comes down to $616. Jane rings the retailer and asks for a better discount. The retailer immediately offers 18% which would bring the bill down to $574. Jane says she’ll think about it.

Jane checks the energymadeeasy.gov.au website and then rings another retailer for a quote.

The second retailer offers a 17% discount. “Discount on what?” says Jane.

This second retailer advertises a low tariff basic plan with no pay on time discount. It is 35.4 cents for the first 11kWh peak electricity a day and 39 cents peak for the remaining usage, the controlled load is 17.27 cents and the daily supply charge is 82.5 cents a day. Jane knows that her family used 1165 kWh over 91 days peak electricity – an average of 13kWh per day – so 11 kWh would be charged at 35.4 cents per kWh and the remaining 2kWh would be charged at  39 cents. So over the 91 day quarter 1000 kWh is charged at 35.4 cents ($354) and 165 kWh is charged at 39 cents ($64.35) – a total of $418.35 for peak electricity. The controlled load would be 563 kWh at 17.27 cents costing $97 and the supply charge works out to be 91 days times 82.5 cents – $75. The total is $606 with no discount.

The same retailer also has a different plan with higher tariffs but with a 17% pay on time discount. It is 41.5 cents for the first 1000 kWh peak electricity per quarter, 46.3 cents for the remaining, 21.34 cents for the controlled load and 94.4 cents for the supply charge. The electricity costs more but with the 17% pay on time discount it works out to be $579.

So ringing around Jane saved $42 off the quarterly electricity bill ($616 down to $574) – but only if she pays on time. Jane sets up a direct debit to pay $95 a fortnight to the retailer to ensure the $126 pay on time discount.

Next month Jane gets solar on the roof.

The Australian Government has a website energymadeeasy.gov.au that compares the prices that retailers charge you for electricity for residents and small business.

The website provides a guide only and does not recommend a particular offer. You should make your own enquiries with retailers on any offers that interest you.

Note that the company People Energy is not taking on any new SA Customers at the moment.

 

 

 

 

 

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