Thanks to a number of factors, from the supply-side to the demand-side, prices in the energy market have been on a steady downward trend since late last year. In fact, energy prices were at their lowest levels in four years this March.
When energy prices drop like this, we move our Power Active customers to better rates, if they have the Active Option added to their plan.
That’s how businesses that signed onto Power Active, and added the Active Option, last year have already saved between 5-14%* on their base energy rates** and could save more if prices fall again.
These savings will apply to contract periods across calendar and financial year deals from April 2020 through to December 2022.
Put simply, the Active Option helps businesses tackle the challenge of knowing when to sign a new energy deal to get the best price. It’s a simple mechanism that lets your base energy rates move down with the energy market if prices fall.
It’s also not the only tool Power Active customers can use to unlock value from their energy.
Small changes unlock more value
Most retailers will adjust their prices to how and when your business power. We do this too, through our Price Efficiency Adjustment (PEA).
The difference? Our customers can control their PEA and the rates they pay by making changes to how they use energy.
It can be as simple as shifting flexible operations, like chargers or heating and cooling, to run when energy prices are lowest.
Month to month, this means Power Active customers can influence the prices they pay by improving their PEA.
How to unlock value when contracting
Even if you’re locked into an energy contract, you can still make the most of the falling energy market.
Contracting in advance of your current contract ending can help you take advantage of drops in the energy market and set you up to get better rates in the future.
With prices in the wholesale spot and ASX Energy Futures markets at their lowest levels in four years, locking in a new energy contract for the future could help you stay ahead of the market.
If prices bounce back, you’ll have locked in a lower rate. If prices fall again, adding the Active Option will let you move down if the market drops again.
To stay up to date with the energy market, tune into our weekly live market updates, On The Spot.
* Savings apply to businesses that signed onto Power Active with the Active Option in 2019.
**Base energy rates do not include Flow Power’s margin, Price Efficiency Adjustment or network tariffs. Base energy rates are for calendar year and financial year contract periods between 04/20 and 12/22 across the National Energy Market, savings may vary state by state.