Buzz in energy market

THE operators of Tasmania’s new power retailer say they have had a strong response from customers interested in switching from Aurora.

Victorian company 1st Energy yesterday became the first power retailer to enter the Tasmanian market after deregulation.

Executive director Adam Landry said he was pleased with the response.

“The story has generated a lot of interest and inbound calls, we are busily signing up every customer we can,” he said.

Mr Landry said the arrival of competition in the market had raised a lot of questions from consumers.

“There is no joining fee or charge for transferring supplier,” he said.

“We have a solar plan that gives customers an extra 5c on their feed-in tariff.

“And customers who receive government concessions will still receive exactly the same with 1st Energy.”

Energy minister Guy Barnett welcomed the company to the Tasmanian market.

“Retail competition provides benefits for Tasmanian consumers through greater choice,” he said. “Increased competition aligns with our Tasmania-First Energy Policy which is focused on delivering low prices for Tasmanian energy consumers and ensuring that Tasmania is self-reliant in meeting its energy needs through renewable energy.”

Principal Consultant at Goanna Energy Consulting Marc White said it was a good idea for people to do their due diligence when considering changing power providers.

“The number one question for anybody considering signing a contract is whether their rates can change and when and how it might happen,” he said.

A company spokesman said tariffs would be reviewed on July 1 each year in line with the Tasmanian Economic Regulator’s setting of the regulated price and the Australian Energy Regulator’s approval of TasNetworks pricing and cus- tomers would be notified in advance of any change.

Mr White said customers should also make sure they would retain their concessions and whether they could claim an early payment discount and the solar feed-in tariff bonus at the same time.

“For a small retired household of one or two people spending $1500 to 2000 a year on energy that $550 rebate is a big number,” he said.

The company said all concessions would be retained but the early payment discount and the feed-in tariff bonus could not be combined.

And he said customers should also check whether the tariff 41 heating and hot water tariff applied all day or just at certain times — 1st Energy said it was a 24-hour-a-day tariff.

Mr White said the total residential electricity market in Tasmania was around 220,000 consumers, with around 20,000 on PAYG meters ineligible to switch and around 80,000 on some form of concession.

“Our view is that Aurora is unlikely to be overly concerned about this offer in the marketplace because the even headline numbers appear to be very similar,” he said.