Wellington overnight lines charges are changing on 5 January 2017, and because we’re committed to passing on the wholesale cost of electricity, this change will affect some of our customers.
So, as a Flick customer in Wellington, what does this mean for you and your electricity bill?
What has actually changed?
For some time, we’ve been able to offer all of our Wellington customers a lower overnight (11pm – 7am) lines charge made available by Wellington Electricity (the lines company in Wellington).
Wellington Electricity have asked all electricity retailers to cease offering this tariff to customers, unless they have a very specific metering set-up for which the tariff was originally designed (to suit night-store heaters). Only a very small number of customers have the necessary meter set-up.
It’s important to remember this change only impacts the network lines fee, which is just one of the charges that make up your weekly bill. This change does not affect the generation fee (from the spot market) that Flick also passes through at the wholesale rate. The spot market tends to see lower prices at off-peak times such as weekends and overnight, so Flicksters are still going to benefit from wholesale generation prices. This means you can continue to make loads of savings by using your appliances overnight (and at other off-peak times of the day).
How will I know if my metering configuration makes me eligible for the lower overnight tariff?
If you have the eligible meter set-up, you should have received an email from us by now. You’ll have a Controlled/Night meter that probably runs a night-store heater, overnight hot water cylinder or underfloor heating. To be eligible, the meter must control a permanently wired device.
After 5 January, the special rate will only apply to power used on this circuit between 11pm and 7am, and 1pm and 3pm. There will be no power to these devices at other times of the day (controlled by Wellington Electricity).
If I don’t have the specific metering configuration, how will this change affect my electricity bill?
In the long term, you’ll most likely continue to be better off with Flick – with access to the spot market, you can make the most of crazy low everyday prices. You don’t get that with a traditional electricity retailer!
And hey, the truth is that there are many other areas around the country where a special night rate is not available from the local network company, and in those areas Flicksters have saved $357 on average in the past 12 months.
To find out how the change will impact your electricity bill, we recommend checking your latest bill and referring to the day-time network charge (shown as network ¢/kWh) which is what you will be charged 24 hours a day from 5 January.
Here’s what your bill will look like from 5 January:
Network Charge Low User Night – you will no longer see this on your bill after the changes have been made.
Network Charge Low User Uncontrolled – this is your day rate. This rate (11.58c/kWh in this case) is what you’ll be charged 24 hours a day after 5 January.
Network Daily Charge – this will remain the same.
The above image is the Transmission/Distribution section of a bill from a customer who has an Uncontrolled meter set-up on a Low User Plan. We can find out how much this customer would have been charged on the new rates by taking the total kWh (108.88kWh) and multiplying this by the day rate (11.58c/kWh). In this case, the difference is $1.65. The impact on this customer’s bill is less than $2.
If I have the metering configuration that makes me eligible; how will this change affect my electricity bill?
Because we don’t have specific usage information for the appliances you use on the Controlled/Night meter, we can’t tell you how much of your usage will continue to be charged on the Night rate, and how much will be charged at the Day rate from 5 January. So, we can’t say exactly what impact the change will have on your bill – you’ll start to see these changes on your bill from 17 January 2017.
A price schedule with the new tariffs from 5 January 2017 can be found here.
We know all of this can be a bit to get your head around, so if you have any questions, flick us an email at email@example.com or give us a bell on 0800 435 425.