FREQUENTLY
ASKED QUESTIONS

The Price Efficiency Adjustment (PEA) is a monthly update to your electricity rate. It goes up or down depending on when you use power and what the wholesale price is at those times. The PEA helps you save by using electricity at the smartest times. 

If you shift your energy usage to cheaper, greener times – like the middle of the day when renewables are abundant, you can lower your overall rate through a negative PEA.  

But if you consistently use power during expensive periods, like the early evenings – you may see an additional charge as your PEA. 

There are a few factors that we use to calculate your monthly PEA, and you can dive into more detail about this calculation here. 

At a high level however, we calculate your PEA against: 

• How your energy use compares to the average Flow Power customer (the ‘benchmark PEA’) 

• The times of day you use electricity 

• The wholesale electricity prices at those times 

• Your network tariffs 

We compare your electricity price to what the average customer in your area is paying, so you can see how you stack up. 

Right now, the average is about 1.7 cents per kilowatt-hour (1.7c/kWh). That’s what most of our customers are paying compared to the market. 

We check this average regularly and update it about once a year. 

If you do better than that average during your billing period, you’ll pay less than  your base rate. The better you do, the more you save. 

You’ll also get tips in the Flow Power app to help you use energy more efficiently. This page takes you through how you can set and enable price notifications in the Flow Power app. 

Energy efficiency
This means using less power overall. You do this by getting  more energy -efficient appliances, light bulbs, or making your home keep heat/cool  better. Basically, it’s about cutting down how much electricity you actually need. 

Price efficiency
This means using power at the cheapest times. Electricity costs more when lots of people are using it (like mornings and evenings), and it costs less when fewer people are using it (like late at night or midday when there’s lots of solar). So, you save money by shifting things like laundry or charging devices to those cheaper times. 

Using electricity when it’s cheaper helps lower your bill and often means you’re using cleaner energy. That’s because power prices are usually lower in the middle of the day, when more renewable energy (like solar) is available and less fossil fuel is needed. 

By shifting your energy use to these times, you not only save money but also support Australia’s move towards cleaner, cheaper energy. It’s a win for your wallet and the planet. 

You can save money by using more of your power when electricity is cheapest. Prices are usually lower when there’s lots of renewable energy (like solar or wind), when the grid isn’t too busy, or when supply is higher than demand. Running appliances or charging devices during these times helps you get the best value. 

The price of electricity changes throughout the day. In the National Electricity Market (where retailers like Flow Power buy electricity), wholesale prices shift every five minutes based on how much energy people are using and how much is available. Prices are usually lowest in the middle of the day, when there’s plenty of renewable energy in the grid. 

With Flow Home, your pricing is linked to the wholesale market, so when you use power at cheaper times, you see the savings. 

Your network tariff is what your local distributor (the company that owns the poles and wires) charges to deliver electricity to your home. This is built into your  pricing. 

• Single rate (flat) tariff: Prices stay the same all day, so your PEA is only based on the wholesale price at the time you use electricity each month. 

• Time-of-use tariff: Prices change depending on “peak” and “off-peak” times. Base rates are usually a bit lower than single rate tariffs. Using more electricity in off-peak times lowers your PEA, while using more in peak times raises it. 

• Demand charges: If your network tariff includes demand charges, these are billed separately and don’t affect your PEA calculation. 

For a detailed breakdown by tariff type, see our full guide here. 

No. We don’t factor demand charges into your PEA.

We bill these as a separate charge on your account.

A standing offer is a basic energy contract with terms set by the government. Every energy retailer must provide one. It makes sure you’ll keep getting electricity if: 

• You cancel a contract during the cooling-off period but still use energy. 

• You start using electricity at a new property without signing a contract. 

• Your contract ends and you don’t sign up for a new one (you “default” into it). 

• You specifically ask for a standing offer. 

You can learn more about standing offers on the Essential Services Commission’s and Australian Energy Regulator’s  website. 

The Default Market Offer is a price cap set by energy regulators. It’s the maximum amount an energy retailer can charge for a standing offer. It also acts as a benchmark, making it easier to compare energy plans. 

Since 1 July 2019, energy retailers in SA, NSW and south-east QLD must offer a DMO for homes and small businesses. 

The DMO applies to: 

• Residential customers – flat and/or controlled load rates, time-of-use (with or without controlled load), and customers with or without solar. 

• Business customers – flat rates, with or without solar.

You can view our DMO prices here. 

Electricity prices are generally reviewed each year to reflect the costs of supplying energy to customers. Any changes usually happen once per financial year. 

Note: this is separate from your Price Efficiency Adjustment (PEA), which updates your base price every month. 

We will give you at least five days’ advance notice of any changes to your electricity price.

We’ll contact you via the primary email address nominated on your account.

Your electricity price is made up of several key components. If any of these change, the overall price may increase or decrease: 

1. Wholesale energy – The cost for retailers to purchase electricity from the market. 

1. Network costs – Charges from distributors for building and maintaining the poles, wires and meters that deliver electricity to your home. 

1. Retailer costs – The operating costs of your retailer, including business expenses and customer service. 

1. Other costs – Additional charges, such as government programs that support renewable energy. 

Together, these components make up the electricity rate you see on your bill.
You can read more in detail here. 

If your electricity bill extends over a period before and after the rate change, your bill will be split.

Say you are billed on 11 July and a price change comes into effect on 1 July. In this case, we’d charge you the old rate for the electricity consumed in your billing period prior to July 1, and charge you the new rate for the electricity you consumed from 1-11 July.

We’re here to help.

Flow Power’s Hardship Policy means we can help you stagger out your payments through a payment plan or get government support with your payments, among other options. You can read the policy here.

For more information or support, please contact us on 1800 359 797.