Home / Our prices are changing in NSW, South East QLD and SA

Our prices are changing in NSW, South East QLD and SA

On this page you’ll find information about why our prices are changing, what makes up your energy prices, how we can support you if you’re struggling to pay your energy bills and more.

Graphic of a wind farm. Prices are changing in Victoria

Why are our prices changing?

There are a bunch of factors we take into account when setting the rate we charge you for your electricity. The two greatest impacts on electricity rates are wholesale and network costs. We have reviewed our rates including to reflect changes in the underlying costs of providing energy. We’ve worked hard to make these new rates competitive.

Are my prices going up or down?

Your individual usage, distribution network and other factors will have an impact on your actual energy bills.

To see your existing and new rates, log in to your Powershop account.

Why is my solar feed-in tariff changing?

One of the benefits of investing in solar panels for your property is that they’re helping to bring down your power bills.

There are a bunch of factors we take into account in setting the rate you receive for the solar you export to the grid. These include things like:

  • The wholesale energy price at the time of export – which has been particularly low recently, especially in the middle of the day when solar exports are likely to be at their peak. This puts downward pressure on solar feed-in rates.
  • Other costs like metering, retailing and GST, which don’t change whether energy comes from the grid or solar panels.
  • Providing competitive energy rates (usage, network and solar) for all our customers and for solar customers, rewarding them for investing in renewable energy on their home.

We’re continuing to focus on helping make your solar work better for you. If you’re not part of your states Premium Solar Benefit Scheme (which most customers aren’t), then a great way to help bring down your power bills is to consume the electricity you generate rather than exporting, so you avoid the cost of grid electricity and use the renewable energy you’re generating instead.

The Powershop app can help you figure out when your daily generation peaks so you can take advantage of this. Doing this can also help reduce demand on the grid at critical times.

We’re also working on how we keep innovating for the future. Currently that’s designing a Virtual Power Plant offer that supports customers with solar and batteries in minimising their bills and providing maximum benefit to the grid! Want to hear more about this? Sign up for updates here.

Are you having trouble paying your bills?

If you’re having trouble paying your Powershop energy bills – for any reason – please get in touch.

We understand that times can be tough which can make it hard to keep up with your bills. If you are facing financial difficulties, we are here to help so please give us a call as soon as possible.

Visit our Payment Help page on our website for more information on the support available.

What makes up energy prices?

The pricing we charge you in your electricity bill is impacted by all the different parts of the energy supply chain that work together to get power to your door. Below are some of the factors which make up the cost of an average energy bill:

This image is for illustrative purposes only and doesn’t represent a Powershop bill.

1. Wholesale costs
The costs of purchasing electricity from wholesale markets.

2. Network costs
The costs of managing and maintaining the network of poles and wires to transfer electricity to your property.

3. Environmental costs
The costs of complying with important environmental initiatives, such as meeting the Renewable Energy Target (RET) and developing small scale solar schemes.

4. Retailer costs
Our costs for looking after our customers, including managing customer data and billing services, developing tools like the Powershop app and running our award-winning Customer Care team.

5. Goods and services tax (GST)
Always included in the price.

How does electricity get to my property?

Here’s what it takes to get electricity to your power point.

1. Generation: electricity is generated by generators across the country from coal, gas, wind, water and the sun. Meridian Energy Limited (our parent company) generates renewable energy from two wind farms and three hydro stations and purchases renewable energy from an additional two wind farms under power purchase agreements.

2. Transformer: once generated, electricity is sent through transformers to increase the voltage so it can travel long distances across large transmission lines.

3. National Electricity Market: electricity is then sent across the National Electricity Market, which is made up of around 40,000km of transmission lines and cables.

4. Substation:the electricity then reaches a substation and the voltage is lowered so it can be sent to smaller power lines.

5. Distribution: electricity travels through this ‘network’ of distribution power lines managed by your distribution company, the voltage is lowered again, and the power arrives at your property.

6. Meter and house: after passing through your electricity meter so that your usage can be measured, the electricity travels through your property’s wiring to power your power points and appliances.

What is the Default Market Offer reference price?

The Default Market Offer – known as the reference price – is set by the independent energy regulator. It is a maximum annual price that can be charged by any retailer in NSW, South East QLD and SA for electricity standing offers.

While most of our market offers are more competitive than the reference price, what it does is provide a ‘like for like comparison’ for residential and small business customers to easily compare electricity market offers between retailers.

When browsing market offers in NSW, South East QLD or SA, you will see them compared against the reference price as a percentage (i.e. this offer is 10% lower than the reference price). This can provide peace of mind for energy consumers, as they have a benchmark when comparing different electricity offers.