How does it work?
Every quarter, a base Ceiling is calculated at 120% of the market fixed rate – you’ll be notified of what it is 10 business days before the start of the quarter. We set both a peak and off-peak Ceiling to make sure you get the best rate possible.
Over the quarter, you’ll continue running your business, letting the Ceiling work its magic. At the start of the new quarter, you’ll get a new Ceiling based on what the market is doing.
What will you pay?
Prices vary throughout the year, with demand increasing in summer. The Ceiling protects you from these major fluctuations by setting a peak price. Rather than 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 adjust it based on your Price Efficiency Factor, which is calculated by comparing your average spend with the market average. This means the Ceiling is customisable for your business’ specific needs. 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.
- 0.6c/kWh peak and 0.4c/kWh off-peak fee, 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.