Victorian households supplied by Alinta Energy will get a shock Christmas present this year, with the retailer announcing an electricity price reduction, while most others are increasing costs by up to 25%.
Significantly reducing daily supply charges on its Fair Deal 43 plan in Victoria, the change means that typical five-person households in Melbourne will save in the region of $80 a year – a price drop of around 4%. The changes take effect from January 12, 2018.
The price reduction has been revealed in the same month that Alinta Energy completed the $1.2 billion purchase of the coal-fired Loy Yang B power station from Engie. The 1,000 megawatt plant in the Latrobe Valley in Victoria is said to provide 17% of the state’s energy needs.
At a time when other retailers are increasing electricity prices, the rate change will be welcome news for Alinta Energy customers, as well as any households in the market for a better deal. You won’t necessarily need to switch to Alinta to benefit. It could provide a good opportunity to discuss an improved deal with your existing retailer.
Compare Electricity Plans
Alinta promises to drive down prices
Alinta Energy MD & CEO Jeff Dimery said: “Their prices are going up, but our prices are going down, and this is just the start. Customers will see us continue to take steps to drive energy prices down. We will also use the investment in baseload power generation, via Loy Yang B in the Latrobe Valley, to deliver more affordable energy for our Victorian customers.”
“Other retailers are passing on increases in wholesale costs to their customers – we’re not. We know that customers have a choice, and we work hard to meet their needs. So we are saying to energy users, if you feel your retailer isn’t doing everything they can to lower prices for you, then you can switch to Alinta Energy.”
Alinta Energy says the average 2.8% reduction in residential tariffs, together with its Fair Deal 43 electricity plan – offering a 43% discount off electricity usage charges when bills are paid on time and in full – is going to deliver more affordable electricity to Victorians. Indeed, Canstar Blue’s electricity database suggests it should be one of the cheapest deals on the market come late January after other retailers have adjusted prices.
“We want to do things differently. We know customers can tell if their energy company is working to deliver them a better deal, or not,” added Mr Dimery. “We also know customers feel they’re paying too much for electricity, so our ongoing approach is to look for opportunities to pass savings to customers wherever we can.
“Ensuring reliable and affordable energy is essential for Victorians and Alinta is here to stay. We are going to play a key role in Victoria as a responsible and growing energy company. We’re making a promise to do all that we can to drive electricity prices down. If your current retailer can’t promise you the same – flick them and switch today!”
Is this a good deal?
Alinta Energy’s Fair Deal 43 product is already one of the most competitive on our database for Victoria. However, it should be noted that it is made such by its huge conditional discount. This discount is only available when customers pay their bills in full and on time – failure to do so will result in significantly higher bills. Therefore customers who often struggle to pay their bills on time may be better-suited to a plan with a direct debit discount, or simply a plan with lower base rates.
Our reference to savings in this article are based on the Citipower network in Melbourne. Be sure to use our energy comparison tool above to search for the latest offers in your area.