There’s a new power company in Tasmania – and it’s offering the cheapest electricity in the state.
Energy Locals has made its market debut, beating out household name Aurora Energy on price, as well as 1st Energy and Future X Power.
How? Well, there’s a little more to it than just low rates. The ‘Local Member’ plan by Energy Locals provides access to wholesale electricity rates for a monthly membership fee.
Customers are asked to pay almost $240 a year for access to the usage rates ‘at the cheapest price we can get them’, according to Energy Locals. And it seems to have worked, because this product is around six per cent cheaper than its closest competitor – membership fee included. That is according to our electricity database at the time of publication.
Energy Locals Head of Commercial, Luke Melisi, said the retailer’s entry into the Tassie market is a great opportunity for locals to save on power costs.
He said: “Energy Locals has been operating for four years, increasing our presence across the National Energy Market over that time. We pride ourselves on simple, transparent energy tariffs, and we’re excited to provide Tasmanians with a new transparent alternative for its energy supply.”
“Unlike many energy retailers, we earn no money from energy usage. In Tasmania, our flat usage rates are more than 5c/kWh below Aurora’s standing offer.
“To access these rates, customers pay Energy Locals a membership fee of $19.99 per month – the fee covers the cost of Energy Locals operations, and is fixed, regardless of how much energy you use. That’s why we estimate most Tasmanians will save through switching to us.
“Included in the offer as standard are Energy Locals core offerings – 100% carbon neutral power, 100% Australian-based service, no exit fees or lock-in contracts.”
Tasmanian Electricity Prices
Here are the published electricity deals from the retailers on our database for Tasmania. These cost estimates are based on a household with an annual electricity usage of 2,947kWh/year for a residential customer on a single rate tariff at a selected postcode in Tasmania, but prices will vary depending on your circumstances. Use our comparison tool for a more specific comparison in your area. This table includes featured products from referral partners. Our database may not cover all deals available in your area, and please check retailer websites for up to date information.
How do wholesale rates work?
In the retail world, wholesale prices refer to the actual cost of something purchased directly from its source – and energy’s no different. All power companies buy electricity from the wholesale energy market, and sell it at a marked-up price to cover network, market and retail costs. This covers everything from the costs of transmission line maintenance to paying the wages of call centre employees.
Energy Locals is no exception, but it absorbs its retail costs into the membership fee. It also claims to provide transparency to customers in regards to its earnings against the costs of the energy supply chain.
Canstar Blue Editor-in-Chief, Simon Downes, said the arrival of Energy Locals in Tasmania is a sign that energy price competition works for those who engaged in the market and shop around.
“Despite the deregulation of the Tasmanian electricity market in 2014, it wasn’t until last year that another provider entered the ring, and that seems to have switched on the green light for other companies to follow suit,” he said.
“We’ve started to see households engaged in the energy market in Tasmania for the first time and this latest move from Energy Locals is a great sign that notable savings are on the way if more and more retailers follow them. With a regulated price cap, it’s easy to find the cheapest deals and save.”
Image credit: David Lade/Shutterstock.com
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