Alinta Energy has announced a modest price reduction for customers in south east Queensland, at the same time that the retailer receives credit for driving down electricity costs and saving households in the region as much as $1 a day.
In a report published by consultancy firm Deloitte – commissioned by Alinta Energy – the company was found to have helped put a downward pressure on power costs for all customers in the Sunshine State since entering the market in 2017, translating to household savings of up to $365 a year.
The report found that compared to the market’s median offer on Energy Made Easy, and depending on the household size, estimated bills for Alinta Energy’s Home Saver Plus 25 single rate offer were 13 to 16 per cent lower.
That equates to between $20 and $40 million dollars in savings across Alinta’s more than 125,000 Queensland customers, the retailer says.
The report also showed that since Alinta entered the market in August 2017, other retailers have responded by almost doubling their discounts – from an average of approximately 8 per cent, to the current level of over 15 per cent.
In addition, the number of households switching providers has doubled from 10 per to 20 per cent.
Alinta Energy entered the Queensland electricity market in partnership with the State Government-owned CS Energy, in a move designed to help improve competition in the market post deregulation a year earlier.
A year on, Alinta has now announced it will reduce its weighted average tariffs in Queensland by 1.6 per cent from 2 August, following several other providers in passing on savings from wholesale costs.
While the Deloitte report was based on Alinta’s Home Saver Plus 25 plan, the pay on time discount with the product has since been increased to 28 per cent for two years. Unlike in most cases, the increased discount was automatically passed on to existing customers.
However, it should be noted that Alinta has received some criticism from solar power customers in south east Queensland over the conditions of its discount on usage charges, which does not apply if the home exports enough electricity to cover its usage costs.
Alinta Energy Managing Director and CEO, Jeff Dimery, said he was “proud” that the retailer has been able to improve the affordability of electricity for its Queensland customers.
“Affordability is our customers’ number one issue, which means it’s our first priority,” he said. “Today’s report shows we’ve already made good progress in driving prices down in Queensland, and the further reduction of 1.6 per cent should lighten the load even more for our customers.
“People all over the country are exercising their right to move to better energy deals, which is why this month we’ve also welcomed our millionth customer.”
— Nine News Queensland (@9NewsQueensland) July 22, 2018
July Price Changes for Queensland
Alinta Energy is one of the last electricity companies to announce its annual price changes for south east Queensland. The news has been largely good for Queenslanders, with several retailers cutting their rates.
AGL, Origin, Red Energy, EnergyAustralia, Simply Energy, Powershop and Click Energy are among the retailers to cut their electricity rates in July, but some changes have resulted in greater savings than others.
While Queenslanders have seen price drops of up to 8.6%, the news has not been so positive in New South Wales and South Australia, where most retailers have either frozen rates or only passed on modest savings of less than 2%. A handful of companies may even have increased costs for customers.
That’s why it’s important to regularly compare electricity prices to make sure you’re still getting a good deal.