Why have my energy rates changed?
At this time each year Indigo Power reprices its electricity tariff to reflect changes to the cost of supplying our customers with electricity. We adjust our prices to include changes in network charges, wholesale electricity charges, and any other costs. If the cost of supplying electricity have gone down over the previous year, Indigo Power will pass these cost savings on to customers, if costs have increased, our prices will be adjusted accordingly. In supplying electricity to our customers, Indigo Power always seeks to deliver a fair electricity price. All our customers – whether they’ve just joined or have been with us for years – receive the best price we have on offer, and there are no lock-in contracts or tricky discounts.
Why have my energy rates increased?
Many of you will know that this is a difficult time for those operating in Australia’s electricity industry. Prices in the National Electricity Market have been extremely high for an extended period, forcing some electricity retailers to turn away new customers and others to encourage their existing customers to find a new provider READ MORE. Other electricity retailers have been forced to close READ MORE.
Whilst there have been increases to network charges, the main driver of electricity prices has been increases in the wholesale electricity prices caused by increases in the cost of coal and gas electricity generation. Wholesale electricity prices increased by 141% in the three months to March 31 2022 compared with the same period the previous year, and electricity prices have continued to rise since then READ MORE. Increases in the wholesale electricity market has forced the price of the hedge agreements that cover Indigo Power’s customers upwards. Indigo Power has increased its electricity prices in both New South Wales and Victoria to cover these increases in the cost to supply our customers with electricity.
What is Indigo Power doing to address the current energy crisis?
This energy crisis has highlighted the pressing need to transition away from our current reliance on fossil fuel electricity generation and to rapidly move towards renewable energy generation. To this end, Indigo Power continues to deliver projects that will see well over 1 MWh of distributed energy storage capacity installed across our communities. We also have two high-impact feasibility studies underway. The first we hope will create a pathway for the replication of the Yack01 community battery in our communities, and the second addresses the pumped hydro energy storage opportunity in North East Victoria.
Why has my feed-in tariff changed?
Indigo Power attempts to set a fair feed-in tariff each year, which provides solar customers a fair price for their exported electricity, which can then be supplied to non-solar customers at the best rate possible.
The Essential Services Commission sets a mandated minimum feed-in tariff each year, which is based on their estimate of the wholesale price for electricity during ‘solar hours’. The drop in the feed-in tariff reflects the ongoing trend towards lower wholesale electricity prices during times of high solar production and high supply to the National Electricity Market. In Victoria, we expect this trend to continue, despite current high prices in the national electricity market. For those customers in Victoria with a solar PV system your feed-in tariff will be decreasing from 1 August 2022 to adopt the mandated minimum feed-in tariff and as a result, your solar feed-in tariff will be changing to 5.2 c/kWh.
New South Wales
In New South Wales, the value of electricity exported during ‘solar hours’ is slightly higher. For this reason, a fair price for solar electricity is slightly higher in this state and Indigo Power will be offering a feed-in tariff of 7.4 c/kWh in New South Wales.
READ MORE about Indigo Power’s Plans.