How are your power prices set?
Ever wondered how the price you pay for power is set?
With power prices making up a chunk of household budgets, what do you get for what you pay?
Well, the answer is a bit complicated, so let us break it down.
Who sets the power price?
It might surprise you to know that Aurora doesn’t set the price that standing offer residential and small business customers pay for their power.
Because Aurora is a regulated energy retailer, that’s up to an independent body called the Tasmanian Economic Regulator. They decide on a fair and reasonable price for standing offer Aurora customers.
The Tasmanian Government has also played a role in determining this year’s price change as they have again capped electricity price rises at 2% for regulated customers. They did this to protect Tasmanians from ongoing increases in wholesale electricity costs.
So, what does all this mean for you?
This year, the Regulator approved an increase of 2%. So you’ll see a small rise in price of your power – in most cases less than a cent per kWh. If you receive a concession, you’ll see your concession rate also increase by 2%.
Now that the price has been set – it won’t change for another 12 months, so you can have peace of mind that the price of your power won’t change unexpectedly and that you’re getting some of the lowest regulated power prices in Australia for the fourth consecutive year.
Aurora is the only regulated electricity retailer in Tasmania, which means that our prices are subject to the scrutiny of an independent body each year.
Now that you know how the price is set, you might like to know where the money you pay actually goes.
So what are you paying for?
Power is an essential part of our lives and what you pay on your bill doesn’t just cover the power you use, there’s a lot that goes into bringing you power!
41.5% is for maintaining the network poles and wires which get the electricity to your home (to ensure you have reliable electricity)
35.2% of your bill goes to the cost of generating your power. In Tassie that’s mainly from the local hydro and also a little from the mainland.
12.4% is used to provide service and support to Aurora customers as well as the general running of Aurora Energy which includes our 200+ Tasmanian workforce.
2.8% is to maintain and read your electricity meters.
0.4% is for the fees everyone pays to be part of the National Electricity Market (NEM). (The NEM is one of the largest interconnected power systems in the world, its aim is to make sure electricity is available when it’s needed)
What about the profits?
Because Aurora is owned by Tasmanians, our profits go back to Tasmania.
When you’re a customer of Aurora Energy you support the Tasmanian community– just by paying your power bill.
We’re here to help
We’ll always do what we can to deliver you the best outcomes when comes to your power.
And whether you like to pay weekly, fortnightly or monthly or want to avoid your quarterly bill altogether we have a payment solution for you. We also understand that times can get tough, which is why we have an award winning hardship program (Your Energy Support Program) to support customers when they need it most.
View our Standing Offer prices for 2019-20 which come into effect on 1 July 2019 here.
View our current Standing Offer residential prices here
View our current Standing Offer business prices here