- Who is currently contestable?
- How is contestability decided?
- What if I disagree about whether I am contestable or not?
- Can I combine installation loads to meet the contestability usage threshold?
- Do I have to aggregate installations at the one site?
- What are my choices once I become contestable?
- When do I have to make my choice by?
- Can I stay on tariffs if I want to?
- I am on a contract – what does that mean?
- Can I buy from the wholesale market instead of using a retailer?
- What happens if I don’t choose an energy retailer by the completion of the 12 months that I am contestable?
- How much will a Deemed Fallback Contract cost me?
- When can households choose a retailer?
- Will I receive the same quality and safety with my electricity?
- I am not contestable. What does that mean?
- Will a decrease in electricity consumption at a site affect my contestability status?
- I own an office building in Hobart which uses around 300 MWh of electricity per annum, and one in Launceston which uses 100 MWh. Can I purchase electricity from a retailer of my choice for both sites?
- I will need an interval meter before my new market contract starts. How soon should I have an interval meter installed?
- Can a contestable customer receive an extension to the grace period?
1. Who is currently contestable?
Tranche 1 - Mineral processors and heavy manufacturing whose annual electricity bill is typically over $2 million per year
Tranche 2 - Food processing plants, multi-story office complexes and others whose annual electricity bill would typically be over $400 000 per year
Tranche 3 - Smaller commercial and industrial businesses who typically spend over $80 000 per year at the one location
Tranche 4 - Businesses with a typical annual electricity bill over $25 000 at the one location will include restaurants, large offices, some schools, pubs and clubs and service stations.
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2. How is contestability decided?
Contestability is decided by the consumption of electricity at one location over a 12 month assessment period. Consumption at separate locations cannot be aggregated for the purposes of determining whether you are contestable.
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3. What if I disagree about whether I am contestable or not?
An independent review mechanism overseen by the Energy Regulator is available should you disagree with assessments of your power usage.
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4. Can I combine installation loads to meet the contestability usage threshold
Yes but only if they are at the one site and you have appropriate metering.
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5. Do I have to aggregate installations at the one site?
No you don’t have to aggregate a single site. It is your choice.
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6. What are my choices once I become contestable?
When you become contestable, you will have choice of:
- staying with Aurora Energy by entering into a retail contract with them;
- moving to a new licensed retail supplier and entering into a retail contract with them; or
- registering with the Australian Energy Market Operator (AEMO).
If you are currently supplied by Aurora Energy under a negotiated contract rather than a tariff, then you will continue to be supplied under that contract until it terminates.
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7. When do I have to make my choice by?
Once you become contestable, you are able to remain on regulated tariffs for a maximum 12 month ‘grace period’. This grace period cannot be extended.
You can though at any time during this 12 months choose an energy retailer or enter the wholesale market.
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8. Can I stay on tariffs if I want to?
Yes, but only during the 12 month grace period after becoming contestable.
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9. I am on a contract – what does that mean?
Your contract will continue on foot and there is no grace period when this contract terminates.
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10. Can I buy from the wholesale market instead of using a retailer?
Yes, but this is a business decision requiring some consideration due to the volatility in pricing.
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11. What happens if I don’t choose an energy retailer by the completion of the 12 months that I am contestable?
If after 12 months you have not entered into a retail contract with a retailer or entered the wholesale market, you will continue to be supplied with electricity by the host retailer, Aurora Energy, but under a Deemed Fallback Contract, not under the regulated tariffs previously available. This can have a significant impact on your business.
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12. How much will a Deemed Fallback Contract cost me?
The price of electricity will be the regulated network price plus the spot energy price plus a retail margin. The price is similar to a floating rate mortgage with a flow-through effect. The spot price is determined every half hour as market prices for electricity vary.
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13. When can households choose a retailer?
The State government has reserved the right to make a final decision to extend retail contestability to households and small businesses.
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14. Will I receive the same quality and safety with my electricity?
Yes. No matter who your retailer is you will be guaranteed the same quality, safety and reliability.
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15. I am not contestable. What does that mean?
You will still access your electricity under tariff from Aurora Energy as you currently do.
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16. Will a decrease in electricity consumption at a site affect my contestability status?
No. Once you are a contestable customer in respect of a site, you will remain a contestable customer in respect of that site regardless of any changes in your consumption level.
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17. I own an office building in Hobart which uses around 300 MWh of electricity per annum, and one in Launceston which uses 100 MWh. Can I purchase electricity from a retailer of my choice for both sites?
No. You can only purchase electricity from your retailer of choice for the Hobart site as your electricity usage for the Hobart site is greater than the contestability threshold of 150 MWh per year.
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18. I will need an interval meter before my new market contract starts. How soon should I have an interval meter installed?
As soon as possible. The half-hourly energy consumption data that you can get from an interval meter can help you negotiate the best possible price from your preferred retailer. Some retailers are looking for 12 months of consumption data before they make an offer.
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19. Can a contestable customer receive an extension to the grace period?
No. The grace period is a fixed twelve months from the date on which a customer becomes contestable.
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