I would switch to try it out, but i’m dual fuel and as part of package with Nova get free electric daily charges so unlikely to be worthwhile.

Hmm the 7-8c would usually incorporate TP charges as they are just a pass through. But taking yours and my numbers 4 for energy + 7 for lines + 2 for transmission that leaves 6c or 30% for extras and margin based on current prices! That’s quite a lot for utility businesses in a competitive market I’d have thought. Would be interesting to model what their charges might have been if they had launched in 08 to see what their risk is.

The point is, they smooth prices and are not reflecting the true costs at the time, even though they are selling for very short terms and prices are very low at the moment – under $25 average yesterday and under $10 in the SI today – yet charging over 20ckwh for weekly power packs.

That means their risk exposure is much lower because it’s unlikely prices are going to move unexpectedly strongly in that time and they can lock in risk as you prepay. So the deals they are offering may look good but might also involve some very healthy margins.

That said their rates look very competitive. If I weren’t on a fixed contract I’d definitely consider it, especially if they had sharper rates for off peak or low season power.

What this raises for me is why aren’t others doing similar, why are margins so high, and why isn’t the competitive market delivering lower prices than currently (or perhaps this is proof it is). Perhaps the Comcom report out soon will start to ask those questions.

Dismal Soyanz :
Being the lazy consumer that I am, I let inertia do its thing. Actually I’ve just changed power supplier and have other things to occupy my time with in the interim so changing supplier again is not on the agenda. However, I would be quite interested in a) what you estimate your savings will be over a year (maybe a %age figure?) and b) what your actual savings are in a year’s time. Put it in your calendar to revisit this!

It’s difficult for me to form a counter-factual, as I live with varying numbers of people with varying consumption habits (whether they’re home during the day or not, for example). The way I can tell I’m making savings is if I’m paying less than 21.6 c/kWh (which doesn’t take into account the daily charge by other retailers either). And I definitely haven’t had to pay near that amount yet (although winter will be the telling period, I’m sure).

Question for Ari – I’m a dual fuel user…but I can’t get gas on powershop so am unlikely to switch…anything being done about this?
thanks