Switchwise.com.au Blog

Archive for December, 2009

Jackgreen enters voluntary administration

Monday, December 21st, 2009

Jackgreen, Australia’s only dedicated GreenPower electricity retailer, today announced that it placed itself into voluntary administration. This action is a result of Integral Energy’s wind-up action on 8th December in respect of an unpaid bill of more than $800,000. Jackgreen reportedly spent the past fortnight trying to secure further funding of $3-$5 million but was unable to do so.

On Friday, 18 December the Australian Energy Market Operator suspended Jackgreen from trading in the National Energy Market. This means that from 19 December Jackgreen customers were automatically transferred to another electricity retailer according to the rules of their State’s Retailer of Last Resort Schemes:

Jackgreen customers need not worry – their electricity supply will continue uninterrupted. Customers will be advised in writing to which company they will be transferred, as well as the pricing and terms and conditions applicable to the contract with their new supplier. Customers are usually free to switch from their newly appointed retailer to another power supplier of their choice.

If you are a Jackgreen customer we strongly suggest you wait to receive a letter from the new electricity supplier to which you have been transferred and then use Switchwise to compare your new provider’s power prices against other offers available on the market and switch to a cheaper deal if one is available.

Jackgreen’s plans have been removed from the Switchwise website.

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AER approves electricity distribution price rises in SA

Tuesday, December 1st, 2009

Households and businesses in South Australia will see an increase in electricity network charges of 14 per cent next financial year followed by 6 per cent in the four years to 30 June 2015.

The Australian Energy Regulator (AER) yesterday released its draft determination on the costs that South Australian electricity distributor ETSA Utilities will be able to recover for the provision of electricity distribution services over the period from 1 July 2010 to 30 June 2015. Electricity distributors charge fees to your energy retailer to deliver electricity to your home or business premises – these fees are passed on to end consumers and businesses in the form of higher electricity supply charges and usage charges.

The AER states that network charges represent roughly 40 per cent of the power bills paid by consumers, meaning that the average residential customer in SA would see annual electricity bills rising by $77 (around 5 per cent) in 2010-11 and by around $40 (approx. 3 per cent) each year thereafter.

The reasons for the AER’s decision to approve such hefty increases relate to increased investment required to support both a growing population and increases in peak demand, as well as general increases in costs.

You can read the AER draft determination here. Interested parties are invited to provide written submissions on the AER’s draft determinations and the Queensland electricity distributors’ revised regulatory proposals by 16 February 2010. The AER will make its final decision by the end of April 2010.

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AER approves electricity network cost increases in Qld

Tuesday, December 1st, 2009

The Australian Energy Regulator (AER) yesterday released its draft determination on the costs that Queensland electricity distributors Energex and Ergon Energy will be able to recover for the provision of electricity distribution services over the period from 1 July 2010 to 30 June 2015. Electricity distributors charge fees to your energy retailer to deliver electricity to your home or business premises – these fees are passed on to end consumers and businesses in the form of higher electricity supply charges and usage charges.

Households and businesses in Ergon Energy’s network area (regional and rural Qld) will see an increase in network charges of 26 per cent in the first year followed by 4 per cent in the four years to 30 June 2015. Those living in Energex’s network area (South-east Queensland), will see increases of 21 per cent in 2010/11, followed by 6 per cent increases over the remaining four years.

The AER states that network charges represent roughly 40 per cent of the power bills paid by consumers, meaning that the average residential customer in Queensland would see annual electricity bills rising by $133 (around 9 per cent) in 2010-11 and by around $31 (approx. 2 per cent) each year thereafter.

The reasons for the AER’s decision to approve such hefty increases relate to increased investment required to support both a growing population and increases in peak demand. Apparently over the past 12 years Queensland’s population has swelled by 33 per cent whilst peak demand has exploded by 99 per cent.

You can read the AER draft determination here. Interested parties are invited to provide written submissions on the AER’s draft determinations and the Queensland electricity distributors’ revised regulatory proposals by 16 February 2010.

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