Energy Locals has reassured its customers that the Melbourne-based retailer is not going anywhere despite global and domestic events sending shockwaves across the industry.
Not only did the provider give a summary of what’s driving up power prices, it also had a dig at other smaller utilities that have recently told their customers to leave amid an unstable wholesale market.
On its Facebook page, Energy Locals stated:
“We want to assure you that we’re not going anywhere and we’re certainly not going to ask our customers to leave us (which bizarrely several others have done).”
We've always taken a prudent approach to pricing so be assured we won't be going anywhere and we won't be asking our members to find another retailer.
Our explanation on rising wholesale energy prices and how we're different to impacted retailers – https://t.co/HCmYK3V4mw…
— Energy Locals (@energylocals) June 2, 2022
Adrian Merrick, Energy Locals Founder and CEO, said electricity prices are out of control.
“It’s so extreme that in my 20-plus years in the industry I have never seen anything like this,” he said in a statement. “Why? Because global and domestic events has seen wholesale energy prices skyrocket to more than double what they were this time last year.”
Mr Merrick blamed exorbitant coal and gas prices bumped up by power generators on the back of the Russia-Ukraine conflict, while also questioning the efficiency of fossil fuel stations, some of which have been hit by unplanned outages.
So, what does it all mean for consumers and is there any relief in sight?
“Sadly, there’s not an easy answer for when prices may settle again, so they may remain high for a while yet,” Mr Merrick said. “However, bear in mind that wholesale power makes up about one-third of your total energy bill, depending on your region and amount of usage, not the whole bill.”
A typical residential electricity bill comprises five components; network costs (45%), wholesale prices (32%), retail costs (10%), environmental schemes (10%) and retail margins (3%), according to the Australian Competition & Consumer Commission (ACCC).
Energy Locals noted it resets its prices every July and advised prices will be going up to reflect market conditions.
The retailer also stressed it will not be urging customers to leave like ReAmped Energy did recently, assuring its ‘prices will remain fair and stable, thanks to a cautious approach to buying power’.
Energy Locals Prices
Here are the Energy Locals plans on our database for NSW. These are products from a referral partner†. These costs are based on the Ausgrid network in Sydney but prices may vary depending on your circumstances. This comparison assumes general energy usage of 3911kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.
Here are the Energy Locals plans on our database for Victoria. These are products from a referral partner†. These costs are based on the Citipower network in Melbourne but prices may vary depending on your circumstances. This comparison assumes general energy usage of 4000kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.
Here are the Energy Locals plans on our database for SE QLD. These are products from a referral partner†. These costs are based on the Energex network in Brisbane but prices may vary depending on your circumstances. This comparison assumes general energy usage of 4613kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.
Here is the cheapest published deal from Energy Locals currently on our database for Tasmania. This is a product from a referral partner†. These costs are based on a household with an annual electricity usage of 2,947kWh/year for a residential customer on a single rate tariff at a selected postcode in Tasmania, but prices will vary depending on your circumstances. Please use our comparison tool for a specific comparison in your area. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.
Image credit: fizkes/Shutterstock.com
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