Retail electricity prices could soar by at least 35% in 2023. This is a warning by chief executive Jeff Dimery of Alinta Energy at the latest Australian Financial Review’s Energy & Climate Summit in October 2022.
The Australian Energy Market Operator remains of the view that renewables are the cheapest form of energy and getting more renewables in the system will mean lower prices, however, Andrew Richards, CEO of Energy Users Association of Australia, said at the Summit that making a transition from one energy source to another is a huge challenge and that “… its hard and expensive and likely to drive energybills [up] in the near term”.
During an interview by Sky News on 17 October 2022, Former Howard government minister Peter McGauran said that energy prices will never come down if Australia is relying on Renewable Sources.
“It will never bring Down Prices,” he said. “Baseload coal will, baseload gas will, but not Renewable Energy”.
“[in] The next Twenty Years – nothing is going to replace coal or gas, in terms of economies of scale.”
So, do you think energy prices will come down as we transition to renewable sources?
If energy prices are not going to come down in the immediate term, what can businesses do to immediately reduce their power price pain?
One of the ways Power Choice helps businesses save on energy costs with immediate effect is through our Blend & Extend strategy
If you locked in energy rates when the market was high, we may be able to negotiate with your retailer to allow you to review your current agreement and blend remaining terms with your next energy contract to achieve alower blended energy rate, immediately saving your business more!
Why Blend & Extend?
One of the most common reasons why businesses end up with an expensive energy contract is because they leave the mselves with little time to secure their next energy contract. Typically, they only shop around within weeks of their contract expiry date. This results in very limited choice and the only best choice is the best offer of the market at that time.
When the price of future consumption periodis lower than your current energy price, then you may want to consider Blend & Extend.
The concept is simple. The blended rate is the average of your higher priced energy rates and the lower priced future energy rates. The result will be immediate lower energy rates for your business, delivering immediate energy cost savings.
Time in the market and timing the market is key to securing favourable energy rates :
The energy market moves in cycles. Seizing the best buying opportunities in the market requires expert monitoring, strategic timing and action in the market. At Power Choice, our Electricity Plus Program is powered by Rate watch proprietary software. Our Ratewatch simulates the cost of your next energy contract giving you market insight, and the advantage of being able to make informed decisions as to when to lock in savings, or when to limit risks.
Contact us on 1300 16 50 20 and speak to one of our Energy Markets Expert to find out how our ElectricityPlus Program can Save your Business More!