Looking for Cheaper Electricity, Found a Provider Who Claim to Offer Wholesales Prices, Any Thoughts?

uk3000 on 12/09/2019 - 16:46
Last edited 13/09/2019 - 09:57

My recent electricity bill from Origin was for ~$1K for a 3 bedroom apartment (on a promotional tariff with pay-on-time discounts, I'm savvy). That got me looking for a better electricity deal, again.

Today I've stumbled upon Amber Electric, who claim to be passing wholesales electricity prices to consumers for a flat fee like $10/month.

This sounds too good to be true, almost like Robin Hood of the retail energy market. Any ozbargainers out there already using them? Can you share your experience? There must be a catch I suppose.

I know this may look like a promo post, but I'm not affiliated with them in any way. I've stumbled upon them in my Twitter stream as a promoted post, I suppose Twitter/Google/etc analytics AI is aware I'm looking to change my energy provider.

Updated, in their FAQ they claim they won't charge more than the Default Market Offer (DMO).This is how they claim to be protecting consumers from the wholesale energy price spikes. DMO is essentially a government-set safety net for consumers. For NSW, it's currently ~2K p.a. (source) I don't know how Amber Electric are going to deliver on that, but given that I'd willing to give a try if my meter is compatible.

Home & Garden

Comments

  • stratbargain on 12/09/2019 - 16:54
    +2

    There prices seem slightly higher than what I'm paying at Tango Energy for what it's worth.

    Which means they are probably good rates, but not the best out there… So make sure you shop around.

    EDIT: Also they haven't launched in VIC yet.

    • spackbace on 12/09/2019 - 16:57

      EDIT: Also they haven't launched in VIC yet.

      OP is in SA

      • stratbargain on 12/09/2019 - 16:59
        +1

        "We are launching in VIC, QLD, ACT, NSW and SA very soon."

      • uk3000 on 12/09/2019 - 17:00

        Actually, moved to Sydney in May and this is my first electricity bill here. FWIW, it's higher than any energy bill I had every received in SA.

  • spackbace on 12/09/2019 - 16:57

    Do you have a smart meter? Does say you'll need to get one

    • uk3000 on 12/09/2019 - 17:03

      Don't know yet. It's a rented apartment and as a tenant I don't have access to the electrical room. I'm gonna check with the strata manager.

    • uk3000 on 12/09/2019 - 21:27
      +1

      In their FAQ, they actually promise to install a smart meter if one doesn't have it. Not that it would apply to my case though.

      • spackbace on 12/09/2019 - 23:34

        Yeah but gets added to your bill

        • Tuttle on 24/09/2019 - 11:53

          Are you sure? I've sent an email off to them asking this, but I can't see anything saying they will charge extra for this?

  • wannagrababargain on 12/09/2019 - 17:20
    +12

    This is an interesting product but not for the faint of heart. It was only a matter of time that someone built a platform like this. You would be buying electricity directly from the wholesale market which but then you would be subject to the wildly varying wholesale pricing which can be anywhere from $0 per megawatt-hour to $12,000 per mega-watt hour ($12 / kWh). Usually these $12k spikes happen in the middle of summer on 42 degree day. Your electricialy retailer usually performs the financial speculation and off-setting of risk on your behalf so that you don't have to think about it and only pay a flat rate. You would have to be on the ball and be prepared to basically cut your electricity usage to zero if the price was to spike beyond what you think is acceptable. I prefer to just keep my aircon on and let my retailer take the hit…Sure the retailer builds the management of that risk and their own profit into the flat rate price that you pay year round even at times that they are paying nearly $0 wholesale for electricity. IMO it's easier to just compare who has the best flat rate price (ie which retailer is the most efficient biller/risk manager) and leave the market speculation to someone else.

    If you are currently on a TOU plan, and a extra savvy, this could be the next step you as you're adjusting your time of use.

    • uk3000 on 12/09/2019 - 17:30
      +2

      A great insight, thanks. This product would probably work best for people who operate their own batteries like those Powerwalls.

    • uk3000 on 12/09/2019 - 21:24
      +1

      @wannagrababargain, note this though (from their FAQ):

      What happens if the wholesale price spikes?

      We guarantee you will never pay more than the Government's Default Market Offer over a 12 month period even if the prices spike. If you can reduce your usage during price spikes you can save even more money with Amber.

      I've never heard about "Default Market Offer" before, so googled it. E.g., from here:

      The Default Market Offer is the annual maximum total bill amount (called a reference price) energy companies can charge for the ‘standing offer’ prices based on a set average usage amount. It’s a reference price designed to make it easier for customers to compare energy plans across different providers.

      Energy retailers are free to set supply and usage charges as long as the total bill is equal or less than the Default Market Offer reference price.

      The Default Market Offer can be offered to eligible residential and small business customers in New South Wales, South Australia and south east Queensland from 1 July 2019.

      The Default Market Offer will affect everyone differently. If you’re on a Basic Home electricity plan with a flat or controlled load rate or on a Basic Business electricity plan with a flat rate, your rates will have been changed to reflect the Default Market Offer rates for your area from 1 July 2019.

      What are your thoughts on this? Ta!

      • wannagrababargain on 16/09/2019 - 16:42
        +1

        I must admit I didn't read the FAQs. It is true that being a customer facing retailer they would still have to comply with that new "Default Market Offer" rule so, as an end consumer, it looks like you do still have protection from the raw minute-to-minute wholesale spikes. The key here is "over a 12 month period." You still have the responsibility for best time of use to get maximum benefit, continually. It's no good saving a bunch in winter then forgetting about it in summer because it can get averaged out the whole year. Yes, someone with a Powerwall, EV car or a pool would be the perfect candidate to get the maximum benefit by being able to re-allocate large amounts of electricity usage to arbitrary time of use.

        The reference price / default offer is basically a cap on prices. IMO it will have the effect of narrowing the price gaps in the market. The 'overpriced' retailers will no longer be able to get away with charging too much but on the other hand it will restrict those super low 'incentive' offers from coming around as often since the savvy/cheap users are probably subsidised by the lazy/overpriced users.

  • Meho2026 on 13/09/2019 - 05:13

    How come your bill was $1000, thats massive. Is it an actual meter read or estimate?

    • uk3000 on 13/09/2019 - 05:35

      I know, right! That's the actual meter read. And without pay-on-time discount the bill would be $1.3K. I blame the A/C which is used for heating all the time (wife has cold intolerance). There're a lot of other power-hungry appliances in constant use in this apartment, which are not energy efficient. I would replace them if it wasn't a rental.

  • pistachio1 on 13/09/2019 - 07:01
    +1

    Is this $1300 for a quarter bill? That's extremely high for a 3-bed apartment with, I'm assuming, only you and your wife.

    I live in 6-person household, and I have a home office so I'm at home all day every day during the week running air con and/or heaters, and my bill for last quarter was $715 before any pay-on-time discounts.

    So are you sure your $1.3k bill is accurate? It might be worthwhile at least getting it double checked.

    • ihbh on 13/09/2019 - 07:49
      +1

      How do you manage on $715 with (full?) aircon/heating - how big is your home?

      • uk3000 on 13/09/2019 - 09:46

        I wonder that too. Do you have solar/batteries @moneymoo?

        • pistachio1 on 13/09/2019 - 11:55
          +1

          No, it's just basic electricity. I thought $715 was a lot of money per quarter but after your and the above comments, maybe it's not after all, ha!

      • pistachio1 on 13/09/2019 - 11:55
        +1

        Sorry, no, it's not full aircon and heating. There's two LG P09AWN-14 C2.5kW H3.2kW Reverse Cycle units that are almost always switched on either AC or heating. And then we've got smaller actual fan heaters that get used in the living room in the evening.

        It's a small home, but I actually thought $715 a quarter was a lot of money. Maybe it's not after all?

    • uk3000 on 13/09/2019 - 09:44

      Yes, it's a quarter bill. It's just me, wife and our 4yo in a 3 bedroom apartment of less than 100sqm. But then there's a 14.0kW ducted A/C system, which I think is an overkill for this dwelling, and a very inefficient vented laundry dryer, which is frequently in use. I see if I can get it replaced.

      Still, the bill is very high indeed. I'm going to double check with Strata.

  • BobD on 13/09/2019 - 07:41
    +1

    If your bill has a meter number on it then ask your strata manager if you can check the meter reading. Your reading and date of reading should be shown on the bill. Even meter readers are (somewhat) human and they may have read the wrong meter. If it's (for example) a month since the meter read then the meter reading will have moved on a bit from what's on the bill.

    • Love a bargain on 13/09/2019 - 15:10
      +1

      This. I don't trust the meter readers. I've seen meter reading (not estimate) shown on a bill that's higher than what the reading was when I got the bill.

      • uk3000 on 13/09/2019 - 15:31

        I don't have access to the electrical room with all the meters but I requested a photo of my meter from strata.

  • uk3000 on 13/09/2019 - 10:01

    Bump, updated the post with the relevant Default Market Offer (DMO) info, which I didn't even know is a thing.

  • outlander on 13/09/2019 - 16:17
    +2

    Sounds pretty cool to me. I'd give it a try, but when they do bring it to VIC I imagine they'll exclude solar uses >:[

    To make full use of it, you'd want some significant non-time-dependant loads, and some sort of automatic switch-off for when the power cost gets crazy high.

    • Tuttle on 24/09/2019 - 11:51
      +1

      Pretty sure they'll allow anyone to sign up. Solar and/or batteries would be an ideal setup for this product!

      Outside or heating and cooling (and TV), I reckon almost all my other loads are fully time shift able - especially if it can capitalise on crazy low wholesale prices, and potentially even negative prices??

  • MrHyde on 11/04/2020 - 16:54

    Anyone gone with Amber and can provide update on how it has been?

    • bargainbuyer11 on 17/05/2020 - 10:08

      bargainbuyer11 1 sec ago new
      I am with AMber electric and so far it has been great.
      Our average electricity bill with Alinta Energy for the quarter was $590 and after disc it would come down to $460.

      Looking at our last month's bill, with similar usage, we paid $115 for the month all-inclusive.
      This for the quarter would work out to $345 - $360.
      So Amber is still saving us $100/quarter.

      We do plan to get 12.5KW solar panels for our new house so asper my estimate Amber will soon owe us money.

  • tinx on 22/04/2020 - 16:53

    same question as above :)

  • bargainbuyer11 on 17/05/2020 - 10:08

    I am with AMber electric and so far it has been great.
    Our average electricity bill with Alinta Energy for the quarter was $590 and after disc it would come down to $460.

    Looking at our last month's bill, with similar usage, we paid $115 for the month all-inclusive.
    This for the quarter would work out to $345 - $360.
    So Amber is still saving us $100/quarter.

    We do plan to get 12.5KW solar panels for our new house so asper my estimate Amber will soon owe us money.

  • JakeyJooJoo on 17/05/2020 - 21:45
    +1

    I found it confusing when trying to compare elctricity companies… What do you specifically look for / what is good?

    • MikeKulls on 25/06/2020 - 21:55

      They intentionally make it confusing so it's difficult to compare. I would think most OzBargainers are with Tango as they have a super simple plan. I have a flat rate all day every day of 19c, hot water unit is 13c and solar feed in is 12.something cents. Then $1.10 charge a day for being connected.

  • coinz on 29/05/2020 - 08:03

    Just joined Amber. It is great but mainly suited to houses with a battery or to houses which can otherwise automate closing down loads during price spikes.

    • BigLeviathan on 09/06/2020 - 21:51

      just got the invite from Amber to join (I'm in VIC); what do you mean by automate closing down loads during price spikes?

      • MikeKulls on 25/06/2020 - 21:56

        You need something to connect to amber, get the current price and then turn off loads automatically if the price is crazy.

    • Tuttle on 02/07/2020 - 17:59

      Home Assistant can now do that if you’re that way inclined - Amber we’re open with providing the API so the devs could integrate it into HA.
      Have just started to implement it myself - if anyone is looking to join Amber and try it, let me know (as I’ve found a way to skip the wait queue). The more testers the better!

      • someguycalledpaul on 27/04/2021 - 14:34

        A post risen from the dead. This is an interesting idea - do you have any code base I can take a squizz at?
        I'll PM you.

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