New power company reports strong interest from consumers

THE operators of Tasmania’s new power retailer say they have had a strong response from customers interested in switching from Aurora.

THE operators of Tasmania’s new power retailer say they have had a strong response from customers interested in switching from Aurora. But there a few questions potential customers should ask before signing up.

Victorian company 1stEnergy yesterday became the first power retailer to enter the Tasmanian market after deregulation.

Principal Consultant at Goanna Energy Consulting Marc White said it was a good idea for people to do their due diligence when considering changing power providers.

“The number one question for anybody considering signing a contract is whether their rates can change and when and how it might happen,” he said.

He said customers should also make sure they would retain their concessions and whether they could claim an early payment discount and the solar feed-in tariff bonus at the same time.
“For a small retired household of one or two people spending $1500 to 2000 a year on energy that $550 rebate is a big number.

And he said customers should also check whether the tariff 41 heating and hot water tariff applied all day or just at certain times.

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Executive director of 1stEnergy Adam Landry said he was pleased with the response.

“The story has generated a lot of interest and inbound calls, we are busily signing up every customer we can,” he said.

Mr Landry said the arrival of competition in the market had raised a lot of questions from consumers.

“There is no joining fee or charge for transferring supplier,” he said.

“We have a solar plan that gives customers an extra 5c on their feed-in tariff.

“And customers

who receive government concessions will still receive exactly the same with 1stEnergy.”

Energy minister Guy Barnett welcomed the company to the Tasmanian market.

“The Government welcomes 1st Energy to the state of Tasmania as retail competition provides benefits for Tasmanian consumers through greater choice,” he said.

“Increased competition aligns with our Tasmania-First Energy Policy which is focused on delivering low prices for Tasmanian energy consumers and ensuring that Tasmania is self-reliant in meeting its energy needs through renewable energy”.

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Mr White said the total residential electricity market in Tasmania was around 220,000 consumers, with around 20,000 on PAYG meters ineligible to switch and around 80,000 on some form of concession.

“We would think that the rest of the market is about 120,000 — customers who aren’t on PAYG or on a concession.  

“Our view is that Aurora is unlikely to be overly concerned about this offer in the marketplace because the even headline numbers appear to be very similar,” he aid.

“We would expect a couple of per cent ‘grudge churn’. Actual price-motivated churn we’d think around one per cent per annum.

“Our headline is that this is good for Tasmania, because the market has been fully deregulated for over four years and nobody else has come.

“Finally someone else has come along and what we see is the myth that Aurora is making a motza out of mums and dads has finally been dispelled because the rates are very similar.”