The price of wholesale spot prices in 2021 is often between 1 - 6 cents per kWh. If you think you're paying more than you should for your power, wholesale electricity could be the answer you've been looking for.
How competitive are wholesale electricity rates?
The table below shows the percentage difference between Powerclub's 'Home Flat' residential plans for standard meters (excluding solar, controlled load and any government concessions or rebates), against the regulated *reference price within each network.
The comparisons are based on an annual usage of 5,000 kWh per year, which is average for a medium-sized household, and include Powerclub's annual membership of $45.
All prices are effective as of 1 July 2020. All prices are GST inclusive.
*The reference price refers to the Victorian Default Offer which is set by the Essential Services Commission (ESC) or the Default Market Offer, established by the Australian Energy Regulator (AER) for residents of NSW, SA, QLD and ACT. They are designed to help consumers compare electricity market offers as all retailers must compare their offers against the same base rate or 'reference price'. The difference between the reference price and the 'Powerbank Home Flat' plan in each network is expressed as a percentage less than the reference price.
As a Powerclub Member, you always pay wholesale for the energy you use; however, your Powerbank Plan will depend on your meter configuration and specific network tariff. To find out more about how Powerclub matches you to the right plan, click here.
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Don't take our word for it, here's what real Powerclub Members have to say
Prue, Regional Victoria
"We have been with Powerclub for nearly 12 months now and love dealing with a company that works with customers to reduce their power usage and costs. Being proactive about the power we use is a rewarding exercise that has seen us avoid periods of high wholesale prices and add to our Powerbank when prices are low"
"The app (Powerwatch) is great with wholesale pricing notifications"
Jackie and John, Brisbane
"Powerclub's approach to selling power is a result of years of research and innovative thinking outside the square to solve the problem of high energy costs. And it works. My energy bill has dropped dramatically. I feel proud to be a Member of Powerclub, a not for profit, I've never been able to say that about a power provider before!"
"I wanted to find a way to reduce my carbon footprint without getting solar (because I'm renting). Being with Powerclub has taught me when there are more renewables on the grid which are cheaper. Since joining Powerclub, I'm paying 20% less for electricity that I used to. I also like that the call centre is in Australia."
Get the scoop on wholesale electricity
Spot Market 101
Our electricity grid combines power generated from multiple sources, including coal, natural gas, hydro, wind and solar. The wholesale electricity market is managed by the Australia Energy Market Operator (AEMO) who purchases enough energy from generators to meet demand in 5-minute increments. The highest accepted bid becomes the wholesale rate for that period. These prices are then averaged out over 30 minutes to make the wholesale spot price.
How the market is changing
Australian consumers are leading the renewable energy revolution, with more than 2 million properties being powered by rooftop solar. During the day, solar generation is at its highest, which means more people are using free, renewable electricity. The shift to day-time renewables has reduced demand for fossil fuels like coal and diesel, which has helped to drive the cost of wholesale electricity down.
What other costs are included in wholesale electricity?
Your energy bill is made up of four components. These include electricity generation, network costs (the poles and wires that deliver energy to your home), government fees for renewable schemes and projects and retailer charges. The price of wholesale electricity is usually less than half of your total electricity bill, while the other charges help keep our country powered up. Powerclub's no-profit processes mean our fees are kept as low as possible. We only charge enough to cover our operational costs, which add less than 50c a day for the average user.
Powerclub gives Australian households access to wholesale electricity prices through an innovative new process and a no-profit approach - meaning cheaper electricity for you.
Power-up with Powerbank
Wholesale electricity prices fluctuate based on supply and demand - a bit like the stock market. Your Powerbank acts like a reserve fund designed to offset the actual market price so that you can pay a fixed rate per kWh. When wholesale prices are high, your Powerbank covers the difference, and when prices fall, the money you save tops your Powerbank back up.
Harness the power of wholesale
The Powerwatch app gives you greater control over what you pay for electricity. By avoiding excess usage when the price of wholesale electricity is more expensive, Powerclub Members can potentially save hundreds of dollars on their annual electricity bills.
Great question! Powerclub is here with a big mission - to rattle-up an old and tired industry by offering something designed for the Australian people, not shareholders pockets. We use the latest technology, a lean approach, and low overheads to be more efficient than many other retailers, which means better-priced electricity for our Members.
Being Member-owned means the power is back in your hands, where it belongs.
Joining the Club gives you more power to choose what you pay for electricity. Powerclub Members could save hundreds of dollars a year simply by shifting the use of energy-intensive appliances to cheaper times.
You see, the price of wholesale energy goes up and down, just like stocks on the stock market. While the cost of energy ebbs and flows, it generally follows a pattern that’s easy to predict. Powerclub helps you to keep track of wholesale energy prices so you can easily shift your usage and save money!
Powerclub is the only Australian energy retailer to be Limited by Guarantee, which means that we will never profit from your energy use. That’s because, unlike other retailers, we don’t have shareholders – we have Members.
Find out how Powerclub could save you hundreds off your annual electricity bills. Our energy plans are incredibly popular, so it may take up to an hour for the kit to arrive. Hang in there - we'll get it to you asap!