Residential Customers on a Negotiated Electricity Supply Agreement - Q&A

 

Why are electricity prices increasing?

There are two reasons why prices have risen for all New South Wales customers:

 

1.	Increased network charges
	Electricity retailers pay for the use of network services to transport electricity to their customers, and pass this cost on to customers as part of their electricity bill.   These network charges, which are set by the Australian Energy Regulator (AER), will increase over the next three years.  The AER has approved increases in capital investment in our network because we need to:   build new substations and feeders (wires) to cope with the rapid growth in new homes and businesses and the uptake of air-conditioning replace ageing ‘baby boomer’ assets (built in the 1950-60s) before reliability becomes a problem for customers; and meet new licence conditions set by the New South Wales Government for improved reliability by 2013.
2.	Increased retail costs
	The cost of buying energy from generators and retail operating costs are expected to increase by about 3% over the next three years.

 

Please note that the Federal Government has announced its proposed Carbon Pollution Reduction Scheme (CPRS) will not come into effect until at least 2013.  As a result, electricity price rises will not include any costs associated with a CPRS.

 

This means the forecast price increase over the next three years is expected to total 20% for regulated residential and small business customers in Integral Energy’s network area. Increases may vary depending on your local electricity supply network.

 

How much money will be spent on the electricity network?

The increase reflects investment of $18 billion in electricity networks across New South Wales over the next five years to cater for growth in electricity use, the replacement of ageing assets and improving the reliability of supply.

 

Who sets prices?

The Australian Energy Regulator (AER) sets prices for the network charges for a customer’s bill.

 

The Independent Pricing and Regulatory Tribunal (IPART) sets regulated prices for residential and small business customers in New South Wales.

 

The regulated retail prices set by IPART include the network charges as approved by the AER for the Integral Energy, Energy Australia and Country Energy electricity supply networks.

 

In March 2010, IPART released its determination on electricity prices for three years from 1 July 2010 to 30 June 2013, including forecasts for both retail and network charges.  This determination indicates price increases totalling 20% for Integral Energy’s small retail default customers over the next three years.

 

More information can be found on:

www.ipart.nsw.gov.au  and

www.aer.gov.au

 

Will prices continue to increase?

Regulated retail prices are reviewed by the Independent Pricing and Regulatory Tribunal (IPART) every 12 months with approved prices implemented on 1 July each year.  Network charges are subject to annual regulatory review by the Australian Energy Regulator (AER), with approved prices also implemented on 1 July.

 

How much has my bill gone up?

Increases will vary depending on your local electricity supply network.  Customers on a Negotiated Supply Agreement with Integral Energy should have received written notification of their new rates in June 2010.

 

How does the new rate appear on my bill?

If your billing cycle means that your bill incorporates usage before and after 1 July, then the subsequent  bill will show the new charges relating to post-1 July pricing as they will appear under the heading ‘New rate period’ for each of your tariffs.

 

How will Integral read my meter before and after 1 July?

Meters are read throughout the year according to a tightly-planned schedule so it is not practical or feasible for Integral Energy to read hundreds of thousands of meters on 30 June or 1 July.

 

For this reason, and in accordance with the Energy Supply Regulation 2001, we pro-rata customer consumption to take the rate increase into account. For example, if your account is for a 90 day period ending 31 July 2010, you were billed for 59 days (3 May 2010 to 30 June 2010) at the old rate and for 31 days (1 July 2010 to 31 July 2010) at the new rate.

 

Do I have to do anything if I am on direct debit?

No, your new amount was automatically debited from your bank account on the nominated date.

 

I signed a contract so why did the price increase?

We are careful to make all important information available when a Negotiated Supply Agreement is being considered.  The information on rate changes is also in the Terms and Conditions booklet that was given to you before you signed with us on page 52 under Frequently Asked Questions and outlined in Conditions 7 and 8 on pages 14 and 17.

 

How do Integral Energy’s prices compare with those of other retailers?

The regulated rates for Energy Australia and Country Energy electricity supply networks also increased on 1 July. 

 

You may wish to visit the EnergyAustralia and Country Energy websites for more information. You can also visit the IPART website www.ipart.nsw.gov.au for pricing comparisons.

 

Can I choose another energy supplier if I am not satisfied with Integral Energy?

Yes, you can, however, you should be aware that our competitors are also expected to increase their prices.

 

What are my options if I want to terminate my agreement?

If you choose to terminate your Negotiated Supply Agreement prior to its end date you can either return to a standard form contract or choose another retailer.

 

However, if you do so you will be charged an early termination fee. The details of this fee are outlined in your Terms and Conditions booklet under Condition 12. The early termination fee is $95.

 

You can only terminate a Negotiated Supply Agreement without penalty during the 10 day cooling off period.  A termination needs to be made in writing.

 

If I have a Low Rate Deal product, what does it mean when you say ‘the retail cost component of my energy supply charge and systems access charge will not be changing’?

If you have a Low Rate Deal product the retail component of your Energy Supply Charge and Systems Access Charge is protected and will not change. You are only affected by changes in the network cost component of your Energy Supply Charge.

 

What if my Negotiated Supply Agreement is due for renewal?

If your Agreement was due for renewal in June 2010, you may have received a letter with your renewal offer regarding the increased rates. If your Agreement expired in July 2010, you may have received two letters detailing the price increases. The first letter applied to the price increase on the remaining portion of your old contract, and the second letter refers to the pricing on your contract renewal.

 

I have an Agreement with Integral Energy but live in the Energy Australia/Country Energy network.  Have the other retailers also increased their prices?

The regulated network rates in your area have increased in line with the IPART determination on rates. Integral has passed on these cost increases under the terms of your contract.

 

The regulated rates for Energy Australia and Country Energy electricity supply networks have also increased as their pricing is also determined by IPART.

 

The good news is that the benefits you receive with your current product will continue over the full term of your Agreement with Integral Energy.

 

What help is available if I am having difficulty paying my account?

Integral Energy provides a range of flexible payment options to its customers. You can discuss these options with a Customer Call Centre representative on 131 002.

 

INpower is just one of several assistance options.  For more information ask for a copy of ‘We’re here to help’ leaflet or talk to Integral Energy’s call centre. Through the INpower program, we will tailor a solution that best suits your needs.

 

If you are using more electricity than you can afford, one of our energy experts can visit your home to conduct an energy audit.  The energy expert will point out simple and inexpensive ways of reducing the amount of energy used.

 

Or look for the energy saving tips on www.integral.com.au

 

What is the NSW Government doing to help people deal with electricity bills?

The NSW Government understands some people will find energy price rises difficult to meet and has a range of programs to help eligible customers stay connected to these essential services. These include the:

 

• NSW Energy Rebate ($130 a year, rising to $145 from 1 July 2010). This rebate is available for people holding pensioner concession cards issued by Centrelink and the Department of Veterans Affairs or certain Health Care cards
• Medical Energy Rebate ($130 a year, rising to $145 from 1 July 2010) is for eligible customers who are medically diagnosed with an inability to self-regulate body temperature
• Life Support Rebate (rates vary depending on the type of machine) which entitles people with certain items of medical equipment set up in their homes to an Energy Rebate
• Energy Accounts Payment Assistance (EAPA) vouchers (up to $480 a year)
• Low Income Household Refit Program (savings of up to $95 a year)
• Retailer Hardship Policies and Payment Plans
• Save Power website at www.savepower.nsw.gov.au which has a wealth of practical energy saving tips and information; and
• Centrepay is available to customers receiving payments from Centrelink and prevents large energy bills by making regular instalments.

 

More information on these programs can be found on the New South Wales Government Industry and Investment website at www.industry.nsw.gov.au

 

I don’t like these prices changes – who can I write to?

If you would like to make a formal complaint, please write to our Customer Care team detailing what aspects of the changes you are concerned with and we’ll respond to you either in writing or by phone.  Please address your letter to Customer Care, Integral Energy, PO Box 6366, Blacktown, NSW 2148. You can send a fax to Customer Care via (02) 9853 5184 or email the team at: integral@integral.com.au