Let us breakdown how we calculated the savings because transparency is what we do best. If you have questions, just call us.
Flow Power is a licensed wholesale electricity retailer. We’re reshaping how Australian businesses experience energy, so they can have real power when it comes to their electricity. This means the power to understand the impact of the market, to find savings and make challenging decisions that spark real opportunities.
The Power Ahead plan
In 2017, we launched our corporate renewable Power Purchase Agreement (PPA) product, the Virtual Generation Agreement (VGA) to let more businesses tap into low-cost long-term renewable power from large-scale wind and solar farms.
The businesses that sign onto these deals can lock in renewable power, from multiple sources for periods between five and twelve years.
Since 2018, businesses that put themselves on the List to buy wind and solar through Flow Power saved $15.4 million collectively.
- The savings were delivered to businesses across the National Energy Market (NEM). Specifically, businesses in NSW, ACT, VIC and SA
- Those businesses saved $15.4 million collectively since their PPA contracts began 1 January 2018 until the end of April 2019. The savings accrued so far are based on the start of the contract period of each VGA customer.
- The $15.4 million was determined by comparing what customers would have paid through a traditional fixed-rate contract for the same period.
- To benchmark fixed-rate prices, we used publicly available actual pricing for each quarter of the 2018 calendar year from the ASX Energy futures market
- A 10% markup was added to the actual prices from the ASX Energy futures market to imitate the retailer margin portion of a fixed-rate price.
- We’ve taken the majority of power from renewables and the remainder from the wholesale spot market. Any unused generation from the renewable PPA is credited at the spot price and offset against the fixed PPA rate.
- The $15.4 million represents a combined saving on the energy component, including wholesale spot pricing and prices delivered through the VGA, of a bill and large-scale generation certificates (LGC) savings where applicable.
This is because our Power Ahead bundles all these benefits into the one offer, which means better value for customers.
- LGCs through a VGA come at a discount to the market
- To benchmark Flow Power’s LGC prices with the market, we used an industry average.
The savings updated
Since March 2019, when we announced that businesses which put themselves on the List to buy wind and solar through Flow Power saved $14 million collectively, the savings have grown to $15.4m collectively.
- The ~10% growth in savings occurred over the last two months. Broadly this period was between 1 March 2019 and 1 May 2019
- The assumptions above can be applied to how we calculated $15.4m in collective savings.