Why do retail electricity rates change?
There are three major components of a typical energy bill: energy costs (for electricity generation), network costs (for delivery of energy via power lines) and retail costs (for procuring energy, providing service, billing etc). Energy bills also include components for Australian and state and territory government-based environmental programs such as those aimed at increasing renewable electricity generation.
To meet customer demand, energy retailers, like us, buy electricity from the wholesale market where prices for electricity can fluctuate. From time to time, we alter our retail energy charges to reflect changes in wholesale electricity costs. Your network distributor may alter the costs they pass on to us annually, and we adjust your network energy charges to reflect those changes.
Market charges incurred by us are for government mandated environmental schemes and fees for Australia’s independent energy market operator, AEMO. We seek to align your market charges to the costs we incur.
We are continually seeking opportunities to reduce our costs and achieve operational efficiency and excellence. Lowering our costs enables us to pass on cost benefits to our customers.
What happened on 1 January 2020?
The prices under the Victorian Default Offer (VDO) were reset from 1 January 2020. The VDO prices have increased, with two major factors being an increase in wholesale electricity prices and increased network costs. Around 95 per cent of the increase in the VDO has been due to rising forecast wholesale prices and network costs. On average, annual prices for households and small businesses are expected to rise by $110 and $465 respectively.
We have provided you with written notice of these changes to your rates. If you have any questions or need any clarifications, call us on 1300 599 888 or email at firstname.lastname@example.org
Ref: Essential Services Commission 2019, Victorian Default Offer to apply from I January 2020: Final decision, 18 November 2019
With our rates, what you see is what you get.
Small, medium and large sized businesses across Victoria, New South Wales, South Australia and South East Queensland benefit from Blue NRG’s competitive and transparent rates.
We don’t offer huge discounts applied to inflated prices and other confusing trickery. In keeping with our simple approach and transparency, most of our small and medium business customers are not bound by fixed terms or exit fees.
Our customers stay with us for the no-nonsense customer service experience they receive. Clear and accurate billing, the My Account portal, and our Melbourne-based Customer Experience Team that answers 96% of calls within 30 seconds are all good reasons to switch to Blue NRG.
Electricity pricing is a complicated business. Every region nationally has its own tariffs and tariff structures, set by the distributors who are responsible for delivery of the electricity to your business.
For this reason, the easiest way to determine Blue NRG’s rates for your business electricity is contact us directly and speak with our brilliant staff members.
With Blue NRG you receive:
- Great electricity rates
- No merchant fees on credit card payments made under a direct debit arrangement
- No lock in contract*
- Monthly e-Billing
- Access to the My Account portal
- Smart Bills - consolidated billing for multiple accounts
*for customers who use less than: 40MWh in Vic, 100MWh in NSW and QLD, and 160MWh SA
How we reduce your electricity costs
- By giving you competitive rates
- By keeping our own costs low, whilst still investing in features and customer service
- By avoiding expensive marketing campaigns
- By getting things right the first time, so you don’t need to waste hours on the phone with us
- By striving to keep the customers we recruit with excellent value and service
- By analysing your data to identify ways to reduce usage
What is the Default Market Offer and the Victorian Default Offer?
From 1 July 2019, the Australian Energy Regulator (AER) mandated all energy retailers to make a Default Market Offer (DMO) available to households and small business customers in New South Wales, South Australia and south east Queensland. In Victoria, the Victorian Default Offer (VDO), set by the Essential Services Commission (ESC), was similarly designed to re-regulate electricity pricing to ensure that more Victorian households and small businesses can access a fair price for their electricity service.
Victorian Default Offer (VDO)
The VDO is part of the Victorian Government’s Energy Fairness Plan to ensure a fair price for more Victorian households and small businesses for their electricity usage. Victorian households and small businesses (with the exception of embedded network customers) can ask a retailer for the VDO or can use the VDO rates to compare against offers to ensure they’re getting value for money on electricity.
If you are on a flexible tariff market offer (usually indicated with peak / off peak rates on your invoice), a new regulated price has been introduced from 1 January 2020, so you may wish to review what that means for you now.
Default Market Offer (DMO)
The DMO is the annual maximum total bill amount energy retailers can charge for the standing offer prices based on a set average usage amount. It was also designed as a reference price to make it easier for customers to compare energy plans.
Regulated price or market offer – which is better?
According to both the AER and the ESC, the DMO and the VDO do not necessarily reflect the best offers available to customers. The Australian Energy Council has advised customers to stay on or switch to a market deal with your retailer rather than rely on the regulated pricing because it will save you money.
Call us on 1300 599 888 today to see if a Blue NRG offer is right for you.
Solar Feed-in Tariffs
|New South Wales||6.2 c/kWh|
|South Australia||6.8 c/kWh|
|South East Queensland||8 c/kWh|