Power Shock. It's not average of 20-30% increase is much more

[Deactivated] on 13/07/2012 - 02:59
Last edited 13/07/2012 - 06:57

Shocked yet by your new electricity rates. I thought after all the talk about average rates I would be at least prepared. No such luck.

Got a message from Dodo (and these are the regulated tariffs NSW Truenergy)

Previous Rates

Daily service charge 51.7c
Usage Peak 40.04c
Usage Shoulder 14.85c
Usage Off Peak 8.8c

From Aug 1st

Daily service charge 73.39c
Usage Peak 52.547c
Usage Shoulder 21.34c
Usage Off Peak 13.09c

Increase percent

Daily service charge 56.1%
Usage Peak 31.2%
Usage Shoulder 43.7%
Usage Off Peak 48.75%

So considering my bill is mainly off Peak/Shoulder usage, which is what these bastards wanted, to so call save capacity building, I estimate this to be a 45% increase in my energy costs. And we are already using blankets instead of the heaters, so there is limited scope for power reduction.

AND they say they need the increase to assist with capacity in the peak periods. But the percentage increase in costs is lowest for the peak period!! and highest for the off peak.

Brace yourself

Home & Garden

Comments

  • hothed on 13/07/2012 - 09:50

    Go to http://onebigswitch.com/

    Cut my gas and electricity bills by around 10%.

  • srhardy on 13/07/2012 - 09:53

    Holy shit! That's an AVERAGE of 44% increase!!! How are they going to justify this and how long before wages have to skyrocket for consumers to be able to afford the basics of life? I live in QLD and being extremely conservative with electricity usage this last quarter my total bill was under $300 but in order to achieve this I had to, well not use it. Family tell me they are getting bills of $600-1000 a quarter and this isn't sustainable on current salarys.

    We need more power generators, competition and lower prices, what's wrong with cheap electricity as its built the nation thus far but what, no further? I love solar and I hope one day that I could go off grid but that's not going to happen anytime soon. Until them I see governments upping the daily service charge to keep ever growing income from ever increasing consumers trying to go off grid,or at least substantially reducing their dependence on government power providers.

    I made the mistake of trusting government, but both side of politics have abandoned us to their version of free markets that ar neither FREE nor a functioning market. Costs have to rise to cover not global warming or the cost of carbon (it's basically a free byproduct after all) but to shore up the government give away mentality of buying votes at each election.

    FREE health, but your dead before you get it
    FREE education, but you leave high school unable to count or spell
    FREE welfare, lifetime government support at working tax payers expense
    FREE prisons, where we will all lend up if things keep going the way they are!

    No wonder the US octo-mum wants to imagrate and the boat people would risk drowning to get here….

    • ozb-442 on 13/07/2012 - 10:08
      +6

      Calm down buddy…

  • coolhead on 13/07/2012 - 10:18

    I am with LUMO and they high daily rates & low usage rates… not sure which one will work better…
    This is what they sent me:
    From 1st July…
    Daily service charge: 0.90013
    Anytime usage: First 10.95kwh/day: 0.26543
    Anytime usage: Remaining usage per day: 0.28259

    So ur peak is very high 0.52, but DAILY IS less.. & i compared the rates.. these guys increased around 10-14%

  • ozzie13 on 13/07/2012 - 10:29
    +2

    Am I missing something or are NSW peak prices almost double those of Queensland? Qld regulated prices:

    http://www.deedi.qld.gov.au/energy/New%20electricity%20prici…

    $0.25 usage and $0.29 daily service fee.

    • maldrat on 13/07/2012 - 14:19
      +1

      You're correct, but the QLD tariff 11 does not have off peak/shoulder rates. Also, rates in regional Queensland (Ergon) are heavily subsidised by the state government.

  • [Deactivated] on 13/07/2012 - 10:41
    +1

    You have to be careful here. Energy prices are all over the place, depending on where you live.

    I cant check other suppliers at present as the rates they are quoting as of this morning do not include the new prices which are to come in effect on August 1st.

    Dodo does give a 15% rebate if paid on time. Other suppliers do the same.

    My point here is the lie we have been told about the % increase in our power bills, which is a combination of Carbon tax and Capacity upgrades.

    If mine has risen so much just be aware your might as well.

    • Tetchy on 13/07/2012 - 13:16

      Speaking from a Victorian perspective I have also noticed a dramatic increase in off-peak rates. I believe that our coal-fired generators are not capable of a daily ramp up and down for fluctuating supply demands (but must be fired up continuously) the only savings being that at night excess steam used to drive the electricity generators can be condensed - thus saving water. This off-peak EXCESS capacity should rationally be available at a marginal cost. I only have rates going back to 2000 (perhaps add 1/3 for later CPI increases) when our already privatized distributor quoted 3.83c/kWh & 4.56c/kWh - excluding GST naturally. PROFITEERING ANYONE?

      Will NSW also be subject to a heavy de-sal impost? This global warming is certainly proving costly with increased electricity demand for cooling driving up prices, and extreme weather events bumping up insurance premiums.

      I understand that (over the last few years - decade?) the coal-fired generators have averaged just 3 to 4c/kWh: with the new carbon tax levy adding a further 3 to 3.5c/kWh. From memory, that home of capitalization US has residential supply & usage rates on AVERAGE less than half our OLD rates - google their govt website for current figures.

      A recent article quoted a NSW return on equity verging on 20% pa to the Govt. This is similar to our major banks - although this being an after tax rate needs to be scaled up. [30% reduces to 21% after the 30% corporate tax rate]. Personally I would be happy to pay tax on even half that rate of return ;-)

      Here in Victoria our regulated return on equity is under 10% (but from memory our privatized distributors are still profitable enough to trade at over twice asset/NTA value): but with NSW currently bankrupt - not your pollies though - I guess the State needs the dough!

      .

      • maldrat on 13/07/2012 - 14:17
        -1

        Re: generator prices/costs, keep in mind that this has very little to do with the final bundled electricity rate you pay. 90% of what you pay is for infrastructure maintenance costs, various regulated/environmental charges and the retailers' costs/profit margin.

        I've also observed the dramatic increase in Victorian residential off-peak rates and it's mostly due to the retailers' costs/profit margin, not network/energy/regulated charges. Shop around though, and you maybe able to find a better option.

        • Tetchy on 13/07/2012 - 17:53

          You appear to be a fellow Melbournite. I am on a flat rate, but at an average 2.5kWh/d (one kWh/d for each person & the fridge/freezer) it's not a problem - although with our last warmer summer the need for some air-conditioning did increase this to 2.76kWh/d.

          With an aging population, and the majority of households now only containing just one or two people (although I believe the latest census may show that inflated rents etc. are leading children to return to the family home - anticipated by "Packed to the Rafters"); I imagine there is an increasing argument for smaller, more energy efficient homes.

          From memory a recent (late June?) Age report commented that over one-quarter (26.5%?) of the average Victorian residential electricity account was attributable to a middle-man Retailers markup. This would seem to make the our new 3.5c/kWh levy & PV etc. loadings pale into insignificance - although this might explain our very high churn rates and the army of door-knockers about. Of interest Bundl suggest only around 10% as a Retailer markup - but as a broker I wonder whether they have some vested interest?

          I would be interested in your views; in particular on the costs & value of our Retailers?

        • Tetchy on 14/07/2012 - 12:09

          As you are an energy insider (consultant/broker?) might I point out that a senior energy executive has said that only UP TO half a customer's bill may be attributable to network (transmission/distribution) costs http://www.brisbanetimes.com.au/queensland/newman-wages-war-…

          You may also be interested in these official US figures which show that in the last month, or so, average residential usage prices are verging on 12c/kWh. http://www.eia.gov/energyexplained/index.cfm?page=electricit…

          You have correctly highlighted the [intended] complexity of residential energy offers; but as a consumer I am wary of comments from vested interests. In particular I find what is NOT said can be the most important.

          Shades of Rummy? 8<)

        • maldrat on 17/07/2012 - 08:12

          My understanding is that the net profit margin in Victoria atm is quite minimal due to high competition/customer costs. A significant cost we pay is due to the rent seeking agents/marketing companies. With the high churn rates they experience, retailers are forced to spend a significant amount of money to retain/acquire customers. This is then passed on to the consumers. I think this is an inherent failure of an imperfect market. My estimate is that it costs between $100-$200 for a retailer to acquire/retain a customer. If this cost is reduced, the savings could be passed on to the consumer.

          Your rates comprise raw energy charges+energy losses+network charges+environmental charges+other regulated charges+operational costs+profit margin. Each network tariff type (eg: C1R Citipower flat rate residential in metro Melb) has a set of network charges published by the local distributor. Network charges are generally about 25%-50% of the final rate.

          http://www.citipower.com.au/docs/pdf/Electricity%20Networks/…

          If you pay 17.17 c/kWh for C1R, 5.24 c/kWh is for the network charges. Another interesting point is that the existing environmental charges (SRES/LRET/VEET) are almost as high as the carbon tax, but most people are unaware of their impact.

          Imo the only way to address this is to make it easier for customers to compare and switch retailers. In the near term, the likely introduction of more complex time/demand based residential tariffs once the AMI roll-out is complete will make this even more difficult. On the other hand, smart meters may make it easier for customers to switch a lot quicker than waiting for several months. Perhaps the state government should look into a feature on Yourchoice.vic.gov.au where the customer's interval meter data could be used automatically to calculate the best retailer for their load profile.

          Another suggestion is to break-down all the different rates and charges on the electricity bill (as they do for large commercial customers). This will make it extremely easy for customer's compare rates as they only need to look at the peak/off peak raw energy rates and the service charge. The retailers can advertise the same raw energy rates for the whole state, and perhaps even fix them for the contract term. The downside with this is that while the customers may easily find the cheapest retailer, they may not understand the other charges on their bill and won't know how to adjust their usage to reduce costs.

          Ultimately it is the consumer's responsibility to ensure that they hold energy retailers to account by being well informed and voting with their feet if they are being ripped off. Given that power is a homogenous product/service, I simply can't understand why most residential customers choose a more expensive option.

          Btw, I've worked in the industry for several years and I consult for industrial users. I've got no vested interest in the residential electricity market.

  • Cobalt_ on 13/07/2012 - 10:42

    And this is only just the start. Can't wait to see how much prices will be up in 6 months time. Wonder if my employer will be willing to do salary reviews quarterly instead of annually. Doubt that will happen =(

  • bluedufflecoat on 13/07/2012 - 12:26

    Mine looks like it's going up 10%. Also with Dodo, but in VIC. Also get a 20% discount for paying-on-time, in our case, direct debit a fixed amount each month before the actual bill is issued, say every 3 months or so.

    Plan: E3JNR-MAT1 Old Rates New Rates New Rate after PoTD#
    Units Ex Gst Inc Gst Ex Gst Inc Gst Inc Gst
    Daily Service Charge c/Day 61.99 68.189 61.99 68.189 Not applicable
    Usage - Anytime c/kWh 21.945 24.14 24.16 26.576 21.261

    Our daily service charge is not increasing, only our usage charge. There is no differentiation between peak / offpeak rates.

  • maldrat on 13/07/2012 - 12:39

    Dodo's new rates you've quoted are inc. GST and match the new Powersmart TOU Home rates set by IPART (For Ausgrid/EA/TRU distribution area).

    The previous rates you've quoted are however considerably less than last year's default rates. Dodo were either charging you less than the standard rates last year or the rates you've quoted do not include GST.

    Following are FY 2011/12 rates for your tariff type (incl. GST).

    Daily service charge 64.90
    Usage Peak 44.66
    Usage Shoulder 18.04
    Usage Off Peak 10.56

    The real increases are therefore (for people who were on the standard rates last FY)
    Daily service charge 13.08%
    Usage Peak 17.66%
    Usage Shoulder 18.29%
    Usage Off Peak 23.95%

    The carbon tax probably accounts for approximately 10% of the overall increase and CPI about 3%.

    I haven't looked into the network charge increases, but I wouldn't be surprised if the retailers in urban NSW start offering discounts higher than 15%.

    • [Deactivated] on 13/07/2012 - 13:45

      Thank you Maldrat

      I guess Dodo was offering lower rates last year.

      The prices I quoted were GST inclusive.

      Would look like my previous great deal has ended with a bang

      Can you post the link to the new Powersmart rates you quoted.. Thanks

  • Tetchy on 13/07/2012 - 13:51

    There are certainly state differences. Going back to my 2000 figures (and needing to add ~1/3 for 12 years of 2 to 3% pa inflation) my Melbourne supply charge (again net of GST :-)) WAS $34.65/q; but as this had been doubled to fatten up profits for privatization the State clawed back $60/y in excess profits, giving a net daily supply charge of just 22c to go with 12.11c/kWh.

    For Sydney I was advised that the corresponding 2000 figures were 16c/d & 10.15c/kWh.

    Does anyone also have records going back in time?

    • Tetchy on 13/07/2012 - 14:10

      Updating 'my' Sydney figures from 2000 to allow for inflation (~34%?), plus the 10% GST and the new Carbon Tax levy (~3c/kWh) gives 1/7/2012 gross figures of 24c/d & 18c/kWh.

  • Postulative on 14/07/2012 - 11:04

    Yep, privatising electricity suppliers is clearly a great way to help consumers and ensure decent prices.

    Or you could live in the ACT, where we haven't yet bought into this "competition" mantra and we pay decent prices.

    • [Deactivated] on 15/07/2012 - 07:17

      You make a very big assumption here.

      That being it's the privatisation that has added to the prices.

      Which you might want to provide some evidence.

      Based on media reports much of the costs we bear in NSW, if for infastructure upgrading, which would indicate the previous owners, yep the STATE government has been neglecting this cost for years, so now we pay.

      Then add the costs for subsidizing solar energy, you know the stuff we were lead to believe was coming from Green funds, out of general tax revenue, which the politicians were expousing, was from their great management. In fact it was coming from the energy suppliers who just past the cost on to other users.

      And yes I would have put solar panels all over my house at those subsidised rates, except my place is shaded by those GREEN trees, thinking stupidly that this was environmentally friendly.

      BTW where in the ACT is there a major power generating plant to supply that cheap electricity that you talk about. Most of it comes from the National Grid, which is awash with cheaper power as there is excess capacity.

      As admitted here in NSW the costs are the mostly due to infastructure costs, not the power (excepting the Carbon tax component). And the ACT does better with that funding than the States.

      So maybe we all move to Canberra, then we'll see how great it is there!! LOL

      • Tetchy on 15/07/2012 - 11:37

        Throwing caution to the wind, might I interrupt the laughter of our [Sydney shock-jock] moderator.

        Some information on the actual machinations of the electricity market are exposed in the following WP thread
        http://forums.whirlpool.net.au/forum-replies.cfm?t=1947547
        where comments by [another] industry insider, with vested interests (like maldrat in this thread?) has provoked some particularly educated responses.

        As a mod Pete, you might contribute more to this community by personally doing a little independent schooling on an increasingly important issue.

        For example: What profit was returned to the NSW Govt at over double the VIC regulated return? (An excess of $1B might cost 3M NSW families around a dollar a day).

        NB It seems that in particular one needs to differentiate between Govt 'standing' rates; and the shonky privatized Retailer Contracts - Bait & Switch?

        Pardon my grumpiness Pete, but at my age I have little time for clowns 8<)

        • [Deactivated] on 16/07/2012 - 14:06
          +1

          Tetchy.

          1. I was posting this as a private individual here. Note the absence of moderator tag on my post. So "shock jock mod" tag is incorrect. if you must persist with the tag, then at least delete the mod part.
          2. I dont know what part you are referring to about being shocking. And just pointing to a thread, which its hard to read and link YOUR thoughts compared to what my comments were, its laying it on a bit thick. My guess is most wouldn't bother with your link.
          3. Again rather than obscure references, why not spelt it out if you are so concerned about this "increasingly important issue"
            Given your comment to postulative below, frankly I dont know if you think privatisation is a good idea, good but poorly implemented, or bad?

          Thanks

      • Postulative on 15/07/2012 - 13:12
        +3

        You're correct, I am making an assumption. The assumption is based by observational evidence in every world market where electricity has been privatised.

        In California, not only did prices go through the roof but the private operators failed to invest in infrastructure, leading to electricity brownouts in one of the richest states in the richest country on earth.

        The evidence is consistent - economists with their mantra of "private sector good public sector bad" have been lying. The concept of "less regulation good" has been proven to be utter rubbish, most recently by banks. So what do we do? We continue to refuse to tax adequately, and instead sell off taxpayer assets (like Telstra) at mates' rates. We then discover that the private sector charges more (that pesky "profit motive" demands 20%), and deliver less.

        You may want to take care which "media reports" you listen to, as well. You are right that the NSW government could and should have spent more on infrastructure - just don't believe that the situation's being rectified by selling it off.

        • Tetchy on 15/07/2012 - 16:07

          From the official US website Californian Residential electricity rates are now 15c/kWh; a little above the overall US average of 12c/kWh. Commercial & Industrial rates are somewhat lower again - possibly with having the clout to cut out some middleman fat!

          A good case for a winter taxpayer funded trip to sunny California; for our pollies to learn how initial privatization problems can be overcome? ;-)

  • mrshorty on 14/07/2012 - 13:28

    quite alarming how elec prices are going up

    Luckily got solar panels installed a while back which buffers some of these prices hikes

  • huntress_love on 16/07/2012 - 14:41

    I didn't notice the rates as they are quoted in cents and didn't seem like a huge difference.

    I'm with dodo also in melbourne with 20% discount.
    rates as follows (for comparison) gst inc:

    no change to daily serivce 58.245
    old rates 20.975 now 23.309 (first 11.2kw per day)
    old rates 23.371 now 25.971 (rest of the day)

    new rate after discount now 18.647 & 20.777
    so about 11% increase.

    I'm waiting for all the new rates to come out so can do a compare on variuos switch website and see which is better! I know lumo has a 'we'll match it' kind of policy hopefully dodo will also.

  • bargdebarg on 16/07/2012 - 20:08

    Ozpete:

    "So considering my bill is mainly off Peak/Shoulder usage, which is what these bastards wanted, to so call save capacity building, I estimate this to be a 45% increase in my energy costs"

    Not sure if you're aware of this, but your tariff is not set by DODO. Your tariff is determined by your metering configuration which is set by your network (AusGrid, previously known as Energy Australia).

    As you pointed out, in NSW the rates are regulated. Most customers would have received the price change from 1 July 2012, which is when it came in. The prices you're paying are the same as everyone else in your network with your metering setup.

    However, I'm in Victoria and on a flat 24/7 peak rate of 25c/kWh. Your peak rate is so high - it's nuts. I believe that NSW rates are a taste for what is to come for all other states.

    Load up on off-peak, it's the only way.

    • [Deactivated] on 17/07/2012 - 06:22

      Thanks for the supportive comments and ideas.

      Given many of the others here are from Vic, some dont seem to understand the costs we in NSW are facing. The Dodo offer which I took up last year was cheaper than my previous supplier - Energy Australia, so now they are just matching the regulated rates with the 15% discount.

      Our rates are based on time of use.
      Off peak 10pm to 7am
      Shoulder 7am to 2pm and 8pm to 10pm
      Peak 2pm to 8pm
      Plus Hotwater on Off peak 2
      We have no access to TownGas - use LPG for Stove

      And since switching to this versus the old standard tariffs did save about 30% off my bill.

      The problem is now that there is very little I can do to switch power usage to the off/peak shoulder rates (which also increased higher in percentage terms) as I only use <10% of power in peak, and the cold is not just the physical, its the glares from the wife, if the heat drops too low…

      As for other states, I really hope you dont go through what we are going through. We have had I guess a lot more years of neglect in this sector.

  • joannatan on 16/07/2012 - 21:57

    either you like it or not, it is still the effect of carbon tax, if carbon tax won't effect to our life, so why the government still need to hand out some money to low middle income earner?
    tax on fuel, it is like snow ball effect, from the supplier till the consumer.
    farmer taxed on carbont -> delivered by courier (taxed on carbon as well) -> distributor (taxed on carbon as well) -> supermarket (taxed on carbon as well) -> consumer (feel the pain as they have to absorb all this carbon s* tax)
    please checked your chip, is it 200 grams or 175 grams, please check your milk what is the permeate contains before and after carbon tax (they won't disclose to you).

    check how much government help the cost, and have you included all other cost associate with your living cost?

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