Energy Rates Query

LSaturdaysr4thedealz on 07/05/2024 - 21:42
Last edited 08/05/2024 - 08:09 by 1 other user

HI there,

Had a question on electricity, I'm currently with Mercury (Formerly with Trustpower).

My energy bill is around $60-100 dollars a month. I use LPG bottled gas.

My rates are $0.30 cents per day and $0.2582 cents per kWh.

I am constantly tempted by the join now and get $200 dollar credit, $300 or $400 credit, however I am reluctant because I see the daily rate is $1.00+ and the per kWh is around the average $0.20-0.28 cents.

I'm using most of my energy during 7-9am and 4-8pm, work from home most of the time. There's no much stuff i can really shift except for washing stuff, so i cant imagine saving much with Contact Good Nights energy plan or the weekend. We use our heat pump but doesn't add much to the bill. 3.5 people in a 4 bedder in Auckland.

My question is, is it worth switching to a plan that gives me $200-$400 credit?
My daily charge will go from $9 a month to $30 a month. $21 dollars diff, so if I got a $200 credit it will mean my plan won't change for 10 months. and $400 wont change for 20 months. Should I just stick with $0.30 a month or will govt/energy company increase the daily rate?

General Discussion Electricity

Comments

  • Alan6984 on 07/05/2024 - 23:17

    I would download your energy usage for the last 12 months from your current provider (or get them to email it to you), and then run the potential plan against that, and see if you would have paid more or less.

    Mine came in 30 minute 'buckets' - I can only guess that is standard. Across 365 / 366 days, it was about 17,500 rows of data, so you can compare plans in a spreadsheet with some simple maths.

    That approach does not take into account any changes in behaviour you would implement on a differing plan of course :-)

  • nzmax on 08/05/2024 - 04:11
    +1

    How are you getting that low daily rate, as all power companies seem to be increasing the daily rate by 30 + cents a year for the next 5 years. ? Mercury's daily rate for low power on 1 year contract seems to be over $1 a day, and $1.30 + on open term.

    • Wakrak on 08/05/2024 - 08:08

      My current rates with Mercury + charge for last bill (just me and a 1yr old for half the week)

      CHARGE TYPE
      Anytime 75 kWh x 25.64 cents $19.23
      Controlled 175 kWh x 20.02 cents $35.04
      Daily Fixed Charge 31 Days x 90.00 cents $27.90
      Subtotal $82.17
    • ace310 on 08/05/2024 - 09:23

      I haven't seen 30c daily rate with any provider since last year. It might be that OP had rates locked in before that, maybe a 24 months contract might explain that.

      • Saturdaysr4thedealz on 08/05/2024 - 10:07

        My term actually has ended with Trustpower and I guess I am on an open term but I guess as long as I don't touch my plan I will remain with the 30cents?
        I started my fixed term in 2021 and havent moved since. I keep getting tempted to leave with the credits but I know the fixed prices will keep rising.

        • ace310 on 08/05/2024 - 10:33
          +2

          That explains it. Yes, if you make any changes, you will lose that 30c. Again, as you are on open plan, Trustpower can change those rates anytime if they want.

        • nzmax on 08/05/2024 - 15:05

          I wouldn't be surprised if they change it very soon for you. IMO it was a stupid move from the government to allow the low power user rate to be removed over time, as it no longer encourages power conservation. It potentially allows energy providers to increase their margins, as they are supposed to also drop the unit rate when they do this. But my provider increased both the daily and unit rate.

        • kyogui on 09/05/2024 - 14:45

          Your daily charge will go up as the labour government agreed to phase out low user daily charges. But i would wait until that happens then switch.

          • nzmax on 09/05/2024 - 18:25

            @kyogui: The unit rate was also supposed to drop to compensate for that. But I don't think that has occurred much, and they will likely just use the argument that they didn't increase the unit rate as much as they normally would have. But power companies seem to be making record profits. IMO it was a crazy move to increase the daily rates to over $2 over 5 years, as it provides no incentive to use less power. Where as if you are on a low daily rate, you get charged a higher unit rate, which means you have an incentive to use less power, than you would if you were on a standard rate..

  • wildeny on 08/05/2024 - 06:42

    https://www.mbie.govt.nz/building-and-energy/energy-and-natu…
    "The Low Fixed Charge Tariff regulations are currently being phased-out over a 5-year period that started on 1 April 2022. Removing these regulations will create a fairer, more equitable system. "

    https://ask.mercury.co.nz/app/answers/detail/a_id/4974/~/cha…

    5 year-phase out Maximum daily fixed charge for a low user (excluding GST)
    Prior to 1 April 2022 $0.30 a day
    1 April 2022 $0.60 a day (start of regulations phasing out)
    1 April 2023 $0.90 a day
    1 April 2024 $1.20 a day
    1 April 2025 $1.50 a day
    1 April 2026 $1.80 a day
    1 April 2027 Regulations removed

    I switched to Contact from Flick this April, because Flick charges $1.20+GST vs Contact $0.90+GST.
    Even though the power rate in Contact is slightly higher than in Flick, but overall Contact is still cheaper for me (based on my monthly usage).

  • NovaAlpha on 08/05/2024 - 13:49
    +1

    I'm with Octopus Energy, average about 180~200 kWh per month. No gas. I pay around $47~$60. All my heating, cooking etc just purely just power.

    Open term, no daily charge, but have variable rates depending on the hours. If you use most of your power during off-peak hours or on weekends, then you may potentially save a lot more.

    https://imgur.com/D3WoV9G

    • dunnersdealer on 08/05/2024 - 15:15

      I’m also a big Octopus Energy fan. I hope they continue with not charging the fixed daily rates that everyone else had implemented, but time will tell.

      I’m on similar rates as yourself but my fixed term contract is up in June.

      • NovaAlpha on 08/05/2024 - 15:16

        They have a fixed term contract? First time I've heard of it. Out of curiosity, what are your rates and how much do you pay? Like, $ amount and usage consumption.

        • dunnersdealer on 08/05/2024 - 23:08

          Yes I’m on their OctopusFixed low user plan which locks in rates for 12months. Unsure how I ended up on that but I’ve been with them a couple of years now.

          Here are my rates:
          Night kWh $0.17
          Off-peak kWh $0.28
          Peak kWh $0.34

          We average around 300kWh p/m, paying approx. $80-$90.

          • LupinS on 09/05/2024 - 08:21

            @dunnersdealer: Those "off peak" (8c higher than some all day plans) and Peak (14c higher!) rates are likely killing any "savings" you are getting by not paying a daily rate (which also comes with a cheaper kWh rate for those paying it).

            I saved $30+ a month by changing to a company that charges me $1 a day, and also now get to charge my car, wash my dishes, and do whatever whenever.

          • ace310 on 09/05/2024 - 09:17

            @dunnersdealer: That seems expensive. I paid $155 last month for 708kwh usage with Contact. As others said, not paying daily rate doesn't necessarily mean cheaper.

            • dunnersdealer on 09/05/2024 - 11:16

              @ace310: Thanks for the feedback guys! I’ll take a deeper dive into comparing rates now that you mention it.

          • NovaAlpha on 09/05/2024 - 16:47
            +1

            @dunnersdealer: Just contacted them and what do you know, I'm apparently also on the same plan as you, just different rates and it's also not a fixed term contract.

            Here's their reply for anyone interested:

            Thanks for getting in touch.

            You are currently on the Low User OctopusFixed rate plan already. It's a plan that we are no longer offering, which is why you can't find it anywhere online. This plan is in place until the 6th of September 2024, after which you'll rollover to a new set of rates. Your current rates are (GST Incl):

            Daily charge - $0.00 /day

            Peak - $0.38571 /kWh

            Off-peak - $0.30659 /kWh

            Night - $0.19297 /kWh

            The actual prices you end up with are determined on your electricity network's pricing. There are 27 different electricity networks within New Zealand, they are otherwise known as Lines Companies, and they all have different pricing. Imagine them as different "suburbs" across Aotearoa, all with their own prices for using electricity. Those prices are passed onto us, and all other electricity providers (like Powershop or Flick etc.), to pass onto the customer.

            You likely have different pricing from whoever commented those rates online because you are in a different electricity Network. You may also have a different set of rollover rates, given to loyal customers who signed up with us early on in 2022.

      • nzmax on 09/05/2024 - 00:33
        +1

        They are now charging $1.38 per day for low users according to their website, which is more than Frank energy charges, which is $0.69. $1.38 sounds too high.

    • Joshyss on 09/05/2024 - 11:21
      +1

      I just tried to lookup for my address but that plan shows $1.38/day charge. I guess they charge now.

    • kyogui on 09/05/2024 - 14:47
      +1

      Your must joined them early, at the moment Octopus isn't worth switching.

      • nzmax on 09/05/2024 - 18:25

        Yes, I don't know why anyone would switch to them ATM.

  • Joshyss on 14/05/2024 - 17:26

    Just had a guy from mercury trying to sell me power and broardband. He was offering 12 month fixed broardband unlimited 300mb $51/month including static Power 90c/day low user, 24c+gst flat rate power. Anyone with experience with mercury?

    • Alan6984 on 14/05/2024 - 18:16

      You could argue that bits and electrons are the very definition of a commodity product - the only differences between providers are service and price.

      Personally, I have not required any 'customer service' from my power or internet providers in as long as I can remember (years at least).

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