Rate Change Image

Coming Clean about Victoria’s Energy Rate Change 2018

All electricity retailers review energy prices periodically and in Victoria, this usually occurs at the beginning of each year, together with the changes in network distribution charges. This often results in a rate change for customers.

As of the 1st of January 2018 our electricity rates have changed for our customers in Victoria. Rates will differ depending on the distribution area you live in.

The main influence of this rate change is that there has been considerable changes in the energy market recently, such as the closure of the Hazelwood Power Station, which have contributed to a significant increase in wholesale electricity retail costs.

Wholesale electricity costs reflect the cost of generating electricity and represent 30-40% of your bill in most jurisdictions. Network costs which are the cost and maintenance of the poles and wires required to get electricity to your building represent approximately 40–55% of your bill. These are the major cost components of an electricity bill. The retail or competitive component of your bill typically only represent 5-15 percent of your bill, with the balance covering costs of government environmental schemes (AEMC, Final Report 2017 Residential Electricity Price Trends).

The introduction of renewable energy generators such as wind and solar have generally resulted in lower wholesale prices in the short term. However, the closure of base load generators, such as Hazelwood Power Station, has put pressure on the supply and demand balance which has led to the large spike in wholesale prices seen over the past few months (See Fig.1)

Quarterly volume weighted average spot prices

(Fig 1 Source: AER Quarterly volume weighted average spot prices)

The good news is that according to the AEMC, energy prices are forecast to fall by 12% over the next two years when more generation such as solar and wind come online.

All major retailers will also have a rate change as a result of these events. While this affects most Victorians, keep in mind that OC Energy aims to minimise rate changes to our rates to keep them low and competitive.

As part of the building’s electricity embedded network, you continue to receive the benefits of our bulk buying power, with our usage rates being at least 16% better than the average of applicable standing tariffs available from the major electricity retailers in your area (AGL, Origin & Energy Australia).

Our easy to understand, single ‘anytime’ rate, comes without the confusing array of discounts offered by many other suppliers. In summary, features of our pricing include:

  • No confusing & conditional discounts, with a single anytime usage rate
  • No contract term or exit fees
  • No late payment fees
  • No account establishment fees
  • No metering fees

And of course, great customer service.

Our Australian based customer service team actually cares about you and want to help provide solutions to any enquiry. This is how we go above and beyond what other retailers offer in terms of support.

In fact, our exceptional customer service was recently recognised by the Australian Energy Regulator.  OC Energy was listed as one of the utilities company that received the least complaints from customers last year. Overall, our customers rather give us compliments over complaints with many customers praising our attentive team.

We have contacted all Victorian customers that will experience this rate change. If you are experiencing any difficulties in affording your next bill, please contact our Australian based customer service team. You can do this by calling 1300 49 40 80 or by sending a email to pricing@ocenergy.com.au to discuss what we can do to help you.

 

More News