March 2020 – AEMO RERT charges

To make sure the lights stayed on this summer, AEMO worked with retailers and energy users to set up the RERT. Many Flow Power customers were involved in the program that paid users to reduce their demand on the grid during peak times.

AEMO called on energy users across the National Energy Market to power down in line with market events this summer.  You can read our recap of this summer here. A number of Flow Power customers reduced their demand on the grid to help to manage their costs and support the system.

Those customers who participated will  receive a RERT payment from AEMO, which will show as credit line item on your monthly invoice.

The AEMO RERT program is paid for by all energy users and customers will see a line item amounting to your portion of the RERT cost on your invoice this month.

March 2020 – FCAS and Direction charges (SA&VIC only)

On January 31, extreme weather saw a tornado down high-voltage transmission lines in Victoria, disconnecting the main interconnector between South Australia and Victoria.

This effectively islanded South Australia from the rest of the National Energy Market. While energy prices in the wholesale market were low, being islanded from the grid limited South Australia’s capacity for Frequency Control Ancillary Services (FCAS).

In South Australia, FCAS can only be supplied by gas generators and the Hornsdale Power Reserve. As gas units don’t usually run, when they do it’s more expensive. This pushed FCAS prices much higher than normal. Typically, FCAS charges are only a small portion of your electricity bill. However, during this event FCAS prices were much higher than normal; they breached the Cumulative Price Threshold requiring AEMO to step in and cap  the price at $300/MWh.

Additionally, AEMO issued directions to specific generators requesting them to run when they normally wouldn’t, in both South Australia and Victoria. This also adds cost that must be recovered from the market.

You will see a charge to cover your share of FCAS and Direction charges passed through by AEMO.

February 2020 – Environmental certificates

This year (CY20), the surrender percentage of STC and LGC will increase provisionally by 2.5%. The LGC and STC rates on your bill will be reflective of this

If you’re in Victoria, you’ll also notice an increase in your VEEC (Victorian Energy Efficiency Certificate) charges. This is due to changes made in the Victoria Energy Upgrades programme which will result in less VEEC creation and higher spot prices.

March 2019 – AEMO RERT

To make sure the lights stayed on this summer, AEMO worked with retailers and energy users to set up the RERT. Many Flow Power customers were involved in the program that paid users to reduce their demand on the grid during peak times.

AEMO called on users in SA and Victoria on January 24 and 25 to power down in line with a market event. For the second year running, Flow Power customers reduced their pressure on the grid by 50% – helping to manage their costs and support the system. Those customers who participated will also receive a RERT payment from AEMO, which will show as credit line item on your monthly invoice.

The AEMO RERT program is paid for by all users and customers will see a line item amounting to your portion of the RERT cost on your invoice this month.

February 2019 – Update on Powercor distribution charges

Are you based in Western Victoria? If so, you’re probably in Powercor’s distribution network.
This month, you might see an adjustment line item on your bill. Let us breakdown what this is.

On November 23, 2018 Powercor changed the way it charged for losses on parts of its network, adopting a lower-cost losses code. The lower cost was applied retrospectively from September 24, 2018 onwards.

While we passed the lower price onto impacted customers, you wouldn’t have noticed a credit on your previous bills, as the credits were held by AEMO.

On February 19, 2019, Powercor reverted back to its previous losses code, re-applying the higher changes retrospectively from September 24, 2018 onwards – again. Under its rules of operation, this is possible.
So, what does this mean for you?
Between November 23, 2018 and February 10, 2019, we billed impacted customers at the lower rate for network losses. Based on the latest changes by Powercor, we now need to re-calculate and charge the difference as an adjustment to impacted customers on their February bills.
(Please note, Flow Power passes through network charges at cost).

July 2018 – Updates to AEMO Pool Fees

Who thought the government would ever remove a tax? Well they have. As of 1 July 2018, AEMO Pool Fees no longer attract GST. This will be reflected in all Flow Power bills

April 2018 – Updates to AEMO Emergency Reserve Trader charges (SA & VIC only)

To make sure the lights stayed on this summer, AEMO worked with retailers and energy users to set up the RERT. Many Flow Power customers were involved in the program that paid users to reduce their demand on the grid during peak times.

AEMO called on users in SA and Victoria on January 19 to power down in line with a market event. Flow Power customers reduced their load on the grid by 50% – helping to manage their costs and support the system. Those customers who participated will also receive a payment from AEMO, which will show as a new invoice credit line item on the bill.

All customers will see a new line item that is your portion of the RERT cost on your invoice this month.

We are working with AEMO to understand the best way to manage these costs for you.

Got any questions? Call us today on 1300 08 06 08

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