Wholesale Electricity Providers - Anyone Caught by Price Spikes? upto $21/kWh

Lsntc on 09/05/2024 - 20:44
Last edited 10/05/2024 - 20:58

Basically, my friend got shocked when he saw 118$ for yesterday electricity usage versus other days of $5 to $15 per day. $118 for a day because of price spike.

He recently upgraded to smart meter as well.

Australian Energy Regulator admits to serious concerns over time-of-use tariffs

https://www.abc.net.au/news/2024-04-20/aer-admits-to-serious…

He checks his wholesale price changes frequently.
Always on his toes you could say.

He will be moving electricity very soon before he can enjoy 6 months promo of no fees.

Price spikes are rare events that occur when the wholesale price temporarily climbs up to a maximum of ~$19/kWh (inc. GST) in most states, and up to $21/kWh in SA (inc. GST).

https://help.amber.com.au/hc/en-us/articles/360050667951-Wha…

Update:
Did some more digging after more advice from the comments; basically amber and alike industry needs to send this below info/link to new customers during their cooling off period in good faith or even during sign up:

Is my household a good fit for wholesale pricing?
https://help.amber.com.au/hc/en-us/articles/360045271232-Is-…

Poll Options

  • 3
    Yes
  • 0
    No
  • 21
    Not falling for them; too much hassle.
General Discussion Electricity

Related Stores

Amber Electric
Amber Electric

Comments

  • nocure on 09/05/2024 - 21:12
    -5

    He recently upgraded to smart meter as well

    There's ya problem

    • sntc on 09/05/2024 - 22:00
      -2

      I recently opted out when was given the option to upgrade to a smart meter after my research. Most of our electricity usage is during evening when peak rates are high. Paying 3 months at a time is better than 1 month. Fear companies won't provide single rate once you have smart meter; not 100% sure but looks like single rate options will be very few.

      • soan papdi on 09/05/2024 - 22:11
        +3

        Fear companies won't provide single rate once you have smart meter

        Not true in my experience, been on a single rate for 8+ years with a smart meter

  • askbargain on 09/05/2024 - 21:27

    does he have a battery

    • sntc on 09/05/2024 - 21:45

      nope

      • askbargain on 09/05/2024 - 21:51
        +10

        then he shouldn't be on amber

  • AndyC1 on 09/05/2024 - 21:37
    -1

    Post sounds not right as wholesale prices are for businesses, not retail customers.

    Wait till the monthly bill comes in for the business due to the "peak" 15 minute load/spike crap…..

    Amber looks like a retail supplier.

  • SBOB on 09/05/2024 - 22:40
    +9

    my friend got shocked when he saw 118$ for yesterday electricity usage

    then your friend shouldnt have joined amber.
    Amber, with their wholesale rates, is aimed at someone very very focused on their energy usage, with the ability to offset their demand during demand times (or reduce it) and 'play' the game of elec usage in their favour.

    Anyone who just signs up for amber and uses power 'as usual' is likely going to end up learning an expensive lesson

    • ragrum on 09/05/2024 - 23:41

      expensive lesson

      Amber is at least built with protections so the $10k+ power bills from Texas can't happen, but it seems like it could be about 50% more expensive than normal retailers for people who don't optimise or when wholesale prices are unusually high. Doesn't seem worth the mental load to me to be monitoring power prices constantly.

  • MS Paint on 09/05/2024 - 22:49
    +1

    Lol. Get a new friend.

  • Wiadro on 09/05/2024 - 22:52
    +1

    lol no my power bill is free for like 4 months

    • sntc on 10/05/2024 - 13:27

      I had free for like 4.5 months free
      - was away for 2 months so usage was low
      - low usage household anyway with all devices upgraded over time with low consumption as a priority
      - promo credit was just enough to cover
      - still had 0.12 cents credit at my departure

  • payless69 on 10/05/2024 - 03:47
    -7

    Ergon energy uses contractors (blame shifting) to forcefully trespass and swap near perfect meters with their almost unreadable smart meters.
    So I never asked for that change but now new meter charges have put a new strain on our household budget.

    I guess OP refers to dynamic demand vs supply pricing.
    QLD taxi drivers go to jail if they try to gain 1 cent extra past antiquated meters. Uber on the other hand can use dynamic charging because the Iranian immigrant who chairs uber does not live in Australia.

    Not my problem Albo muffles, striking power workers deserve a fair pay! Back to smoking weed!

    • soan papdi on 10/05/2024 - 07:38
      +1

      So I never asked for that change but now new meter charges have put a new strain on our household budget.

      The meter does not change how much power you consume. It’s just being measured in real time. Your distributor will be able to give you your usage in 30 minute blocks. You can put that in a spreadsheet and find out when your heavy usage is.

      • richadam on 10/05/2024 - 08:38
        +1

        Yep! With the data available with a smart meter, I have more understanding on my usage and have actually saved money. Seems like it's just the boomers scared of technology who are against them.

        • payless69 on 10/05/2024 - 11:32
          -1

          I am NEVER scared of technology. But now I am forced to pay high meter amortisation costs so Ergon can look up my arse every 30 minutes but refuse to give me access to this breach of privacy I have never agreed to! Comrade Tim calls this work creation as any true comrade would!

        • sntc on 10/05/2024 - 11:33
          -2

          In my opinion, there is bit learning curve / technology upgrade you need to do before you can really get benefit from it.

          If everybody got smart, then the on/off peak rate would likely be the same.

          Most users just come home in the evening from work and that's when the electricity usage happens and they get you with smart rates.

          If they didn't have smart meters, this could have been avoided.

          Australian Energy Regulator admits to serious concerns over time-of-use tariffs

          https://www.abc.net.au/news/2024-04-20/aer-admits-to-serious…

          Most people would just be better with flat rate if they had a choice and avoid all the mental fatigue.

          The industry needs to do better with efficiency than as usual dump it to the users who just want live a life but now having to micro manage everything or pay premium.

          • soan papdi on 10/05/2024 - 11:44

            @sntc:

            Most people would just be better with flat rate if they had a choice and avoid all the mental fatigue.

            Is your "friend" saying there are no flat rate plans for their property? If they were so intent on avoiding fatigue, why go with a retailer that changes rates every 30 mins? Its like they want the benefit of low wholesale prices without the headache.

            • sntc on 10/05/2024 - 12:13

              @soan papdi: not 100% sure but mostly on/ff peak options

              true that's what he fell for: good advertisement in Facebook likely

              and now just learning new things about what he signed up for

              they did confirm to him that they will review quarterly upon my inquiry

      • payless69 on 10/05/2024 - 11:38
        +1

        OP question was: Did you get trapped with something you signed for but not understood before signing?

        Legitimate question and HIGHLY illegal under federal laws!

        I do still have brain cells to turn off not needed stuff but idiot comrades like to dumb down their slaves in order to create new un-needed jobs!

        Long live communism let the dumbos rule the world!!

        • sntc on 10/05/2024 - 12:18

          true that's what he fell for: good advertisement in Facebook likely

          and now just learning new things about what he signed up for

          they did confirm to him that they will review quarterly upon my inquiry

  • pegaxs on 10/05/2024 - 08:48
    +2

    Fffffffffarking how much per kWh? $21? Is that really a thing? Are you sure it isn’t $0.21 or $2.10?

    Imagine plugging your EV in and the power spiking to $21/kWh and your car sucks down 20 of these bad boys while you go have some lunch for an hour.

    At that rate, from empty, it would cost me $1,260 to fill my EV during “peak” usage times…

    • netjock on 10/05/2024 - 09:08
      +1

      Yeah during peaks. Lot of people get caught out.

    • Zephyrus on 10/05/2024 - 09:09
      +1

      It's wholesale energy pricing, you have to go out of your way to get charged that much.

      The idea is you should have a big battery or something like that then you charge the battery when it's cheap and discharge it when it's $21. Borderline impossible for a home user so it's basically a risk free scam from the perspective of the retailer.

  • netjock on 10/05/2024 - 09:12
    +2

    Amber is a funny proposition.

    Years ago when they were cheap fees ($10 a month) plus access charges. So basically the sum of the two adds up to the normal daily supply charge. Then you might get cheap electricity depending on time of day (like 12 - 2pm on a sunny day they might end up paying you to soak up as much energy as you can or you end up paying them with the solar you are generating).

    You actually need to invest a lot into your system (solar + battery + monitoring) to make it work. Say for example. If you use 7kwh per day at home throughout the day. Have a 10kwh battery + 6kwh solar. Use the battery all day, soak up the cheap rates from 12 - 2pm then again after midnight. That is assuming everyday is mild and sunny. You get extreme days where you'll be caught out, when you get caught out so does everyone else therefore prices per kilowatt is way up. You could do energy arbitrage and say load up at 8c Kwh and then try to sell it at $1 during peak hours between 5 - 7pm but you need to have a very large battery and they cost money.

  • apple2016 on 10/05/2024 - 10:07
    +1

    my friend got shocked when he saw 118$

    Should be covered via their bill grantee although its quarterly!
    https://help.amber.com.au/hc/en-us/articles/360037454851-Doe…

    • sntc on 10/05/2024 - 10:38

      And as credit in next month if you stick.
      But my friend mentioned they just replied that yes you will have to pay. Have sent him this link, thanks.

    • sntc on 10/05/2024 - 12:15

      Update
      they did confirm to him that they will review quarterly upon my inquiry

  • DJR9000 on 10/05/2024 - 10:51
    +1

    got caught out here - tried to cut off appliances etc but still got an $85 charge for wednesday. before that it has been a lot cheaper per month than the plan i was on though. I'll be waiting to see if i hit the bill guarantee amount and get a credit. Hopefully the generation outages causing the volatility resolve

    • sntc on 10/05/2024 - 11:10

      checking @apple2016 provided link above

      " This year our Bill Guarantee rates that are set quarterly will be the same, no matter how much power you use (in FY23 residential customers had a higher guarantee rate for usage over 21.9kWh/day on average). "

      https://help.amber.com.au/hc/en-us/articles/360037454851-Doe…

      So basically, the price hikes will just use your savings you made during cheap rates time period during the quarter. And if over the guarantee rate for the whole quarter average, you will get credit in next quarter.

      That guarantee rate for FY23 looks pretty cheap though - 21.9kWh/day; if that is the truth and you can't be bothered switching every quarter for promo credit.

  • heretisj on 10/05/2024 - 17:08
    +1

    I am an amber customer and had average usage of between $1 - $3 per day (prior to spike), however this Wed it was $64 .Amber advised they have a bill guarantee that ensures you wont pay more over the quarter than that specified for your network provider (e.g Ausgrid = 38.21c/kwH (including GST)) and if you do they refund you the difference which i'm looking forward to as i switched providers yesterday after Wednesdays spike.

    https://help.amber.com.au/hc/en-us/articles/26579833687693-A….

    Hope that helps

    • sntc on 10/05/2024 - 17:19

      @heretisj Since your average usage is so low (how if you don't mind), your average quarterly usage will for sure be less than say 38.21c/kwH including GST
      So, there will be no credit for you?
      If average was guaranteed for the day, than you would receive credit but it looks like quarterly.

      "We guarantee that over the course of each quarter you'll never pay more than your applicable Bill Guarantee rate on average for your usage, or we will credit you the difference"

      It's as if the distributor on purpose has calculated this price spike in their advantage and is benefitting by passing huge cost to retailers like Amber who has no option but to pass it to their consumers.

      Their guarantee would have been better to charge you later if above average quaterly use due to price spikes; not charge you first and then credit you later in next quarter invoice; so have to stick for some more time to get invoice for next quarter for the credit to be applied. Hopefully, they will apply credit to people who leave or refund them to their back account accordingly later without any hassle.

  • heretisj on 10/05/2024 - 17:36
    +1

    Hey sntc
    The first 2 months our avg usage was below the cap you are correct, but with this Wed spike for the month (and small kwH usage) will push my avg usage cents per KwH well above that limit for quarter overall hence a refund (estimating ~600kwh qtr paying ~$300 so ~50c KwH) . I agree with you wholeheartedly, they should still apply a credit to those that choose to leave after the spikes - at the end of the day they can simply refund to bank account the same way they direct debit
    Thanks

  • 12woo12 on 29/06/2024 - 11:38

    Dodo is my current electricity provider in Brisbane, Qld and they are upping the charges on 1 July 2024. I want to switch but no provider is telling me their rates from 1 July 2024. Can anyone share what other companies will be offering; Ovo, AGL, origin etc? I want to take advantage of sign on bonus's in the next day.
    Dodo will now have a daily charge of 156.91c/day with 27.52c/day usage.

    • sntc on 29/06/2024 - 15:30

      I recently signed up to Energy Australia with $200 sign up bonus and 100$ cashback from cashrewards for NSW.

      At the moment, I don't care much about rates with my ~ 600kw usage per quarter as the bonus covers it.

      I haven't received any rate increase notice which they are required to notify before increase.

      If your daily charge has gone up by 50%, that means
      additional $45 per quarter. Your kWh usage is pretty cheap compared to NSW. So, any sign up bonus should do you good.

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