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Aussies urged to switch electricity supplier NOW

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Australians urge to switch electricity supplier NOW amid a 285 per cent rise in energy prices – as a company is forced to turn down new customers

  • Simply Energy has canceled offers for new customers as energy prices rise sharply
  • Energy supplier to focus on existing 730,000 customers and prevent them from leaving
  • Homeowners forced to spend more on utility bills as prices have risen

One of the largest energy retailers has cut offers for new customers amid fears it won’t be able to offer low rates without losing money as energy prices rise.

Simply Energy will instead focus on trying to keep its 730,000 customers in an effort to discourage customers from switching providers.

“Our current focus is on helping our existing customers understand their energy costs and manage short-term rate hikes, while taking steps to keep our business strong in a changing energy market,” said a spokesperson.

Some energy suppliers have increased energy rates for an average three- to four-person household by as much as 285 percent per year, costing homeowners an additional $1,200.

The price hike prompted energy company ReAmped Energy to urge its 80,000 customers to find another retailer and save hundreds of dollars.

One of the largest energy retailers has removed offers for new customers for fear they cannot offer affordable prices with rising energy rates

Some energy suppliers have increased energy use for an average household of three to four people by as much as 285 percent per year, costing homeowners an additional $1,200.

Some energy suppliers have increased energy use for an average household of three to four people by as much as 285 percent per year, costing homeowners an additional $1,200.

A spokesman for the Australian Energy Council said energy suppliers would lose money if they didn’t raise their rates.

“If a retailer were to acquire customers today without (price) hedge coverage, it is unlikely that the DMO price would allow them to recoup their costs,” he said.

Simply Energy is one of 19 energy suppliers that have stopped offering deals to new customers.

Power pricing expert Joel Gibson said affordable rates were getting harder and harder to come by.

“Cheap fixed-rate subscriptions (disappearing) by the day,” he told Daily Telegram

Luke Blincoe, CEO of ReAmped Energy, said external factors, such as the Russian invasion of Ukraine and the exposure of Australian domestic gas prices to the global gas market, are responsible for the rising price of electricity.

“The Australian gas price is now effectively linked to the global gas commodity price, so we’ve seen a really steep slope,” he told the Today Show.

‘It has really faded away in the last seven days. The reason we have to take action is because the wholesale price is higher than the retail price.’

The CEO issued the same warning in a video uploaded to Facebook.

“With the state of the Australian electricity market, it is best to leave ReAmped Energy and find another retailer,” said Mr Blincoe.

A spokesman for the Australian Energy Council said energy suppliers would lose money if they didn't raise their rates (stock image)

A spokesman for the Australian Energy Council said energy suppliers would lose money if they didn’t raise their rates (stock image)

Luke Blincoe, CEO of ReAmped Energy, said external factors, such as the Russian invasion of Ukraine and the exposure of Australian domestic gas prices to the global gas market, are responsible for the rising price of electricity.

Luke Blincoe, CEO of ReAmped Energy, said external factors, such as the Russian invasion of Ukraine and the exposure of Australian domestic gas prices to the global gas market, are responsible for the rising price of electricity.

“Prices are going up, and they’re going to keep going up, and we just don’t want to pass those costs on to our customers.”

His astonishing confession comes in response to the rising cost of wholesale electricity, which usually accounts for a third of household bills.

The CEO said ReAmped Energy had worked “very hard” over the past few years to save Australian families millions, but at this point it was impossible.

The retailer has warned customers that their prices could rise by 100 percent and said the best advice it could give was to ‘switch now’.

Mr Blincoe told the Daily Telegraph that until recently, wholesale power could be bought for around 5 cents per kilowatt hour.

The CEO said prices are now closer to 30c/kWh, a worrying sign for his competition, which he revealed were “quickly” exiting the market.

He predicts that the only retailers that could survive the rise in wholesale electricity costs were those who “were also making margins in the wholesale market.”

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