Aurora Energy home page

Large business

Tranche 4 FAQs

What is contestability?
The Tasmanian Government has introduced competition into the energy market to align with development in the national market. Contestability gives you the opportunity to choose your electricity retailer.
back to top

What is the likely impact of contestability on electricity prices?
The introduction of contestability and choice represents a change for both the electricity industry and customers. Contestability is an opportunity to agree on a product with a retailer, rather than being on a tariff assigned to you. Historically, prices have varied after contestability in other states. Aurora is committed to establishing an optimum outcome for your business during this market change.
back to top

Who will provide electricity supply and ensure reliability after I become contestable?
Aurora's Network Division will remain responsible for the physical distribution and delivery of electricity from the high voltage transmission grid to sites that are both contestable and non contestable. In other words, Aurora Network will remain responsible for the ‘poles and wires’.
back to top

How do I know if I'm a 'contestable' Tranche 4 customer?
If you received correspondence from Aurora regarding these changes in the energy market then you have an installation that is deemed contestable. (Contestability is decided on electricity consumption at one location. If your business spends between $25,000 and $80,000 on electricity per year at one site then you are deemed contestable.) If you are unsure whether you are a Tranche 4 customer, please call Aurora on 1300 13 2045 and we can check for you.
back to top

Where will Aurora be sourcing its electricity following contestability?
Aurora can access a range of generation sources from the Australian Energy Market Operator (AEMO).
back to top

Who will be responsible for maintenance?
Aurora's Network Division, regardless of which retailer a customer is signed with, is responsible for maintenance, supply and quality of the network.
back to top

How will other retailers quote prices?
We don't know what other retailers are planning on doing with Tasmanian Tranche 4 customers. Make sure you fully understand all components of any market contract you're offered and ensure all charges and costs are quoted and transparent.
back to top

How do I choose an electricity retailer?
Choose a retailer with a product that best suits your business needs and can balance issues of consistency and experience, minimising search and time investments, expert retail knowledge – all the aspects that Aurora offers. Contestable customers can choose to stay with Aurora and enter a market contract. A negotiated contract will replace your regulated tariff.
back to top

Will I need a new meter?
All Tranche 4 sites in Tasmania will be fitted with a national code-compliant interval meter. An interval meter is capable of recording energy use in half hour blocks, and has a communications link to enable it to be remotely read for billing purposes.
back to top

What are the benefits of moving off a tariff and onto a contract for my electricity?
When you move to a contract you will be receiving a product customised for your business. This may include a price and contract offering for a period and under terms and conditions that suit your business.
back to top

Do I have to move 'off' tariff?
Yes. You have until 1 July 2010 to research your options and negotiate a contract that serves your business needs best. You may remain on regulated tariffs until this date.

Contestable customers must enter into a contract with a licensed electricity retailer or register with AEMO to participate in the National Electricity Market, or you will be placed on a Deemed Fallback Contract.

Once you enter a contract you will not be able to return to a tariff.
back to top

How long are the contract prices that are quoted to me valid for?
Aurora has contract prices available from week to week. When you are quoted a contract price ensure you check its validity date.
back to top

What happens if I have not signed a contract by the time the 12 month grace period has ended?
If, after the 12 month grace period, you have not entered into a market contract with a retailer, a Deemed Fallback Contract will come into effect. This can have a significant impact on your business as electricity prices can vary rapidly and may become very high. It is in your best interest to make sure you have electricity supply arrangements in place before the end of the grace period.

back to top

What are the conditions of a 'Deemed Fallback Contract'?
The contractual relationship will be between you and Aurora and a contract will be created, or deemed, by the Electricity Supply Industry (Contestable Customer Regulations 2005). Aurora's Deemed Fallback Contract has been approved by the Regulator (Office of the Tasmanian Economic Regulator). There is an obligation from Aurora to advise you that a Deemed Fallback Contract is in place and advise you of other contract options. A Fallback Contract is for a maximum of three months, after which time you may be disconnected if you have not made supply arrangements with a retailer.
back to top

How long will Aurora's electricity contract be?
Aurora offers one, two or three year contracts for Tranche 4 customers.
back to top

What if I sign a three year contract and the consumption of electricity goes down (or up) significantly?
Aurora accepts that because your demand for energy may be variable, a load variation of +20% of the Total Contracted Volume is allowed for the duration of the contract. There will be no penalty for consuming under the amount of electricity in your contract that your business consumed in the 12 month assessment period. If you consume more than 20% above the amount of electricity in your contract that your business consumed in the 12 month assessment period, additional charges will apply.
back to top

How will Aurora keep me informed of what's happening?
Aurora will stay in contact with you to keep you informed about contestability and contracts. You can also call us for more information on our dedicated business line: 1300 13 2045.
back to top

Is it possible to have a contract that covers all the sites in my organisation even if some of them are not deemed to be contestable?
No. Individual sites must be contestable to move from tariff to contract with retailers other than Aurora. Contestability is decided by the consumption of electricity at one location over a 12 month assessment period. Consumption at separate locations cannot be combined for the purposes of determining whether you are contestable.
back to top

Can I combine a contract for gas and electricity supply to the same site?
Yes. Aurora is both a gas and electricity retailer in Tasmania; we can provide you with the convenience of combining both these accounts.
back to top

Who do I contact at Aurora if I have questions about contestability?
Aurora has a dedicated business line with experienced operators to help you. Our business operators can be contacted on 1300 13 2045, Monday to Friday from 8am until 6pm.

Where can I go for more information?