Electricity Choices
From the 1/1/02 you will be able to choose your electricity retailer. This is called Retail Contestability and it’s a result of electricity deregulation. Competitive pricing is being touted as a benefit to the consumer under this new system.
When you become a contestable customer you have 4 options:
1 Negotiate a contract with your existing retailer.
2 Negotiate a contract with a new retailer. This could include choosing a Greenpower product. By choosing a Greenpower product you choose the source of the electricity from a range which includes solar, wind, hydro or biomass.
3 Continue with your existing retailer under a deemed contract. This is the default option which details terms and conditions of the supply contract. If you take options 1 or 3 you will remain a Northpower customer.
How to negotiate a contract
1 Develop an energy strategy. What sort of electricity do you want? How and when do you use it? How much are you willing to pay?
2 Collect information on your historical energy usage. This is because the National Electricity Market works on half-hourly spot prices, and you’ll be charged according to the amount and the estimated time of day of electricity use (your load profile).
3 Find out which part of your bill is contestable.
4 Write your own specific "Request for Tender". Ask potential suppliers to provide information about how their electricity is generated and in which proportions. Insist suppliers reply in a standard format so you can compare apples with apples.
5 Evaluate the tenders, making sure that:
i amounts of energy in quotes are equal
ii load profiling is the same on all tenders
iii all other costs are included
iv all electricity sources and proportions are stated
6 Negotiate further with short-listed suppliers
7 Enter into a contract with your preferred retailer.
If you want to do something for the planet, take option 2 and buy a Greenpower product. Under Greenpower you pay extra to have renewable energy supplied to your home or business. Over 17 companies offer Greenpower products. Unfortunately, many of these products include biomass from sugar and forests. Currently, if you buy Greenpower, you are only buying it from Northpower. Northpower’s Greenpower product includes electricity from sugar mill biomass plants which will contribute to forest clearing and create greenhouse gases. Under the new contestability arrangements, you can choose your Greenpower supplier from a nation-wide list.
The next page shows a list of Greenpower products. You can check out who produces what, where it comes from, how much it costs, and contacts for future reference. This list will change towards 2002. Australian Inland Energy and Water seems to be the best so far, generating only from wind and solar.
Why is this an important choice?
Global warming looks likely to be a problem for everyone. 55% of Australia’s greenhouse gases come from power generation. Our per capita emissions are the highest in the world if land clearing is included. The Federal Government and the Australian public have done little to address the situation. The Renewable Energy Act had potential to help, but the inclusion of biomass as ‘renewable’ exacerbates the problem by encouraging wood-fired power stations and expansion of bagasse/wood cogeneration.
Choose carefully. Solar and wind are truly renewable and don’t create greenhouse gases. Be suspicious of biomass – it’s a greenhouse producer and a threat to forests. If you’re concerned about increased electricity costs from using Greenpower, a simple demand management strategy should result in electricity bills which are comparable to your current power expenditure while you get to do something good for the planet.