What is Powerbank?
Your Powerbank takes on the ups and downs of the wholesale energy market so that you can pay a fixed rate per kWh based on the average price of electricity. It works like a reserve fund set aside to cover the gap when the wholesale price is higher than the average. When wholesale prices drop below the average, your Powerbank gets topped back up with the difference.
Your Powerbank is always your money. It's only ever used to cover the cost of wholesale price variations in the electricity you purchase from us.
Your Powerbank is more than a price buffer.
All energy retailers buy electricity based on the wholesale market. Wholesale energy prices go up and down based on supply and demand, a bit like the stock market. A new price is set every 30-minutes, and it generally follows a pattern across the day that's easy to predict.
Price spikes are rare, but they can occur, usually triggered by multiple events coinciding. For example, a summer heatwave increasing demand combined with generator failure putting pressure on supply. A spike is typically short-lived, but energy retailers still need to protect themselves against the risk. They do this by investing in insurance and hedging contracts which, in essence, become an ongoing operational expense passed onto you.
Take control with Powerbank.
Hedging your own risk against wholesale energy market fluctuations reduces our operational costs significantly, meaning we can pass on the savings through cheaper rates. As the wholesale market price goes up and down, your Powerbank will rise and fall in the short term. To build up the level of cover, your Powerbank is designed to grow by around 10% a year. Once your Powerbank reaches the maximum amount, the overflow will be refunded to you as a deduction on your monthly energy bill.
So how much do you need in your Powerbank?
Your Powerbank deposit is uniquely tailored to your household or business. If you use a lot of electricity, you will need a bigger Powerbank than if you're a low energy user. Your Powerbank is calculated at $40 for every 1,000 kWh of electricity you use a year, with a minimum opening balance of $100.
For example, if you use 5,000kWh per year, (that's about 13.7kWh per day), your Powerbank will be 5 x $40 = $200.
Over time, your Powerbank should grow to reach a maximum of $120 per 1,000 kWh of annual usage.What happens to my Powerbank if I leave Powerclub?
Powerbank is always your money. Powerclub holds it in trust while you're taking supply of electricity, to cover you from variations in wholesale energy prices. If you choose to leave the Club one day, you will be refunded the balance of your Powerbank.