Q1. WHEN CAN I CHOOSE MY TASMANIAN ELECTRICITY SUPPLIER?
On the 1st July 2014 Tasmania introduced Full Retail Competition. Whilst competition for business customers has been active for over a decade, 2024 saw the arrival of Solstice Energy to compete with Aurora Energy for Tasmanian households. Other energy retailers active in the Tasmanian residential market include, 1st Energy, Energy Locals and CovaU.
Our focus is to help your business to save money and you can do this by downloading a copy of your energy bill at our Compare page.
Q2. CAN BUSINESSES BAND TOGETHER TO FORM A BUYING GROUP?
Yes. Over the past 15 years we have run over 200 successful Tasmanian Energy Buying Groups. These have included Agri-Businesses, Councils, Private Schools, Tasmanian Small Business Council (TSBC) members and currently the Tasmanian Minerals, Manufacturing and Energy Council (TMEC) members. We can assist you to join an existing energy buying collective or to form a new one. To find out more e-mail us at bestprice@tasenergybrokers.com.au
Q3. IS THE WHOLE ELECTRICITY BILL CONTESTABLE, OR JUST PART OF IT?
The "contestable" or competitive elements of the electricity bill, include Peak Energy, Off Peak Energy, Mandatory Renewable Energy Certificates and metering services. These components make up over half of the total cost of delivered electricity and it is these cost components which are negotiable. Tasmanian Energy Brokers exists to help customers make the most of these negotiable opportunities and to avoid the pitfalls. Simply scan the detailed consumption section of your current business electricity account into PDF and submit it online at our Compare page.
Q4. WHAT ABOUT MY RELIABILITY OF SUPPLY, WHO WILL LOOK AFTER THE POLES AND WIRES?
Almost half of the cost of delivered electricity is made up of "Network Use of System" (NUoS) or transport charges. These energy transport costs remain regulated monopoly costs. TasNetworks continues to own, operate and maintain the local poles and wires and restore faults, irrespective of which Retailer you choose.
Q5. IF THE NETWORK COSTS ARE STILL A REGULATED MONOPOLY, IS THERE ANYWAY I CAN SAVE MONEY ON THEM?
Whilst the TasNetworks transport charges are regulated, contestable users have a choice of several Network tariffs. These include Flat Rate, Time of Use and new Maximum Demand (MD) tariffs. Some of the Network tariffs may require the installation and possibly additional cost of a different meter or a "Smart Meter". Tasmanian Energy Brokers can help advise you on your choice of Network Tariff options. Choice of network tariff, particularly for Large Offer Customers (>150MWh pa around $40,000 pa or more) is independent of your choice of Retail energy supplier. Large Offer Customers (LOC's) can elect to change their network tariff irrespective of when their retail energy contract ends.
Q6. WHEN WILL MY NEW CONTRACT START?
New Retail contracts can be negotiated at any time, even well before your old contract ends. In fact we reccommend you negotiate your new contract well before your old contract ends. However supply under a new contract cannot commence until expriry of your old contract (if you have one) and your new retailer confirms you have a suitable meter, or they arrange installation of one for you. These days most business sites have already had this new meter fitted, but your new Retailer is responsible to ensure a code compliant meter is installed and they will inform you if an upgraded meter is required. In some cases supply under a new Small Offer Contract may not commence until a meter reading has been conducted.
Q7. I HEARD SOME CUSTOMERS WERE FORCED ONTO MARKET CONTRACTS? WHAT HAPPENS IF I DON'T WANT TO SIGN ANYTHING?
Small Offer Customers (SOC's who consume less than 150MWh pa, less than ~$40,000 pa) always retain access to the regulated "Standing Offer Contract", which you can remain on indefinitely and may even return to once your market contract ends. Whilst you are free to seek out competitive offers if you want to, there is no obligation for Small Customers to sign up to a new market contract, so don't be bullied into this and report any abuse to The Energy Ombudsman Tasmania. Remember Retailers may not be under any obligation to save you money over the Tariff. We can help your business save money at our Compare page.
Only Large Business Customer sites/NMI's (>150MWh pa ~>$40,000 pa) do not retain access to the Standing Offer Contracts (previously known as Tariffs). Sites classified by TasNetworks as Large, should ensure that they always have a valid contract in place. Allowing a Large market contract to lapse without a replacement will most likely expose the business to the uncertain cost outcomes of a "Default Rate".
Q8. SO IF I DON'T HAVE TO DO ANYTHING, WHY WOULD I BOTHER AT ALL?
With a Standing Offer Contract available to Small Offer Customers (SOC's), the main reason to enter into a contestable market contract is to make savings over your current Tariff or Standing Offer. The amount of savings available (if any) through a negotiated contract, will depend on many factors, including the prevailing electricity market conditions, your consumption profile between peak times and off peak times and increasingly your motivation and willingness to make changes to the way you think about and use energy. Tasmanian Energy Brokers are able to help you with these calculations and decisions, but first you need to know you need help, you have to want help and you need about 5 minutes of your time to scan and enter your bill details onto the Compare Tab of our website!
Q9. ISN'T RETAIL CONTESTABILITY ALL ABOUT PRICE?
Finally and most importantly, it's not just about price. Energy users should also be aware that the terms and conditions of competitive market contracts are likely to be different to the Standing Offer Contract. Energy users should therefore familiarize themselves with the contracts on offer and how these suit your business circumstances and feel comfortable seeking independent legal advice as you would for any other transaction of this value. Most importantly competition is a two way street. You can choose your retailer but they can also choose how, and sometimes if, they want to deal with you. Your payment history and credit ratings are likely to be key factors when retailers are considering making your business an offer.
If you have any other questions, please email us at bestprice@tasenergybrokers.com.au the only reason we are here is to help you!