What is Powerbank?
Your Powerbank takes on the ups and downs of the wholesale energy spot market so that you can pay a forecast rate per kWh. It works like a reserve fund to cover the gap when the wholesale spot price is higher than the forecast rate and to collect the difference when it is below.
Your Powerbank balance is always your money. It's only ever used to cover the cost of wholesale spot price fluctuations 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 spot prices go up and down based on supply and demand, a bit like the stock market. A new price is set every 5-minutes, and it generally follows a pattern across the day that's easy to predict.
Big price spikes are rare, but they can occur, usually triggered by multiple events coinciding. For more information, see Wholesale Spot Market.
Take control with Powerbank.
Hedging your own risk against wholesale market spot price fluctuations reduce costs, so we can pass on the savings through lower operating costs. As the wholesale market spot price trends up and down over the seasons, so does Powerbank rise and fall across the year. To build up the level of cover, your Powerbank is designed to grow by around 10% a year. Once your Powerbank doubles, it will overflow and the excess will be refunded to you as a credit on your monthly energy bill.
How much do I need in my Powerbank?
When you join Powerclub, you will need to contribute to your Powerbank, either $100 or $40 for every 1,000 kWh of your last year's electricity usage, whichever is greater. For example:
- If you use 5,000 kWh per year or about 13.7kWh per day, your initial Powerbank contribution will be 5 x $40 = $200
- A business using four times that amount of energy at 20,000 kWh per year will need to contribute $800
Over time, your Powerbank should grow to reach a maximum of $80 per 1,000 kWh of annual usage.
What happens to my Powerbank if I leave Powerclub?
Your Powerbank balance is always your money. Powerclub holds it in trust while you're taking supply of electricity, to cover you from fluctuations in wholesale energy spot prices. If you choose to leave the Club one day, your Powerbank balance will be refunded to you.
Could my Powerbank run out of money?
It is possible. If you contribute the correct amount in the first instance, fully depleting your Powerbank is unlikely, however, unusual events can cause the wholesale spot price to spike more often than usual and/or average well above normal prices for longer periods. See Wholesale Spot Market.
We have developed a nifty and free app called Powerwatch, it is designed to alert you when wholesale spot prices are high. It includes information on ways to reduce your energy usage at that time.
A price spike typically doesn't last long and few circumstances could have a significant impact on your Powerbank balance. By taking control of your usage, and minimising it during price spikes, you won't drain your Powerbank by paying too much for power.
To reduce your risk, you can choose to contribute a maximum of $80 per 1,000 kWh of annual usage to your Powerbank account. Powerclub Members can track their Powerbank performance and balance in their Members Portal.
Take control of your power bills
Step 1.
Open your Powerbank with $40 for every 1,000kWh of energy you use in a year. For example, if you use 5,000kWh per year (about 13.7kWh per day), your Powerbank will be 5 x $40 = $200. The minimum opening balance is $100.
Step 2.
Very few circumstances could have a significant impact on your Powerbank balance; however, you can protect it from being used up unnecessarily by downloading the Powerwatch app.
Step 3.
Use Powerwatch to track wholesale spot prices. It will notify you when spot prices increase and recommend ways you can reduce your energy usage at that time.
Will you need to top-up your Powerbank?
If you use Powerwatch to be notified of price spikes and reduce your usage when they occur, under normal circumstances, you should not need to top up your Powerbank. That said, there are three main reasons why you may need to top-up your Powerbank:
- Low Balance: If you use a lot of electricity during a high price event as you can if you have a smart meter, you may deplete your Powerbank below the minimum amount required to cover you from wholesale market conditions in the future.
- Low Contribution: If you underestimate your average daily usage when you join the Club.
- Low Balance + Low Contribution: Your average daily usage has been higher than you initially estimated, and if you use a lot of electricity during a high price event as you can if you have a smart meter, you may deplete your Powerbank below the minimum required to manage your exposure to wholesale market conditions.
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