How does the Ceiling work?

Every quarter, a base Ceiling is calculated at 120% of the market fixed rate (we link this to the ASX Energy Futures price at the time) – you’ll be notified of what it is 10 business days before the start of the quarter. We set the Ceiling each quarter to ensure it always follows market trends and you’re getting a fair Ceiling price.

Over the quarter, you’ll continue running your business, while the Ceiling keeps working for you. At the start of the new quarter, you’ll get a new Ceiling based on what the market is doing.

Wholesale electricity prices vary throughout the year, with demand often increasing in summer months as the weather heats up. The Ceiling protects you from these major fluctuations by setting a maximum quarterly price. Rather than buying electricity at a fixed rate, your cost is calculated by multiplying your usage by the market price every half hour. This is called your load weighted average, and is the figure you see in your bill at the end of the month.

Typically, at the end of most quarters, wholesale prices won’t hit your Ceiling – but if your average price for the quarter does exceed the Ceiling, we’ll look at how your business compares to the market, and apply your Price Efficiency Adjustment, which is calculated by comparing your average spend with the market average. This means the Ceiling adjusts to your business’ specific operation times. We’re transparent about fees, so there’ll be nothing unexpected on your bills.

Here are a few you’ll come across:

• Mark-up on market prices, applied to your load weighted average price across the agreement.
• 1.50c/kWh Ceiling Premium, giving you access to the Ceiling.
• Regulated losses costs – this is standard procedure for retailers.
• Daily service charge, covering the cost of billing and other operating costs.