The existing retailer will charge high default rates for supply once your current contract with that retailer expires and these will apply until the site is transferred to the new retailer. That is why it is important to formalize a new contract well in advance of your current contract expiry date with TTEG.
Retailers permit your contract to be novated to the new owner provided the business continues the same operation requiring the same amount of supply.
The energy charges at the top of your account and the metering charge are the only contracted fixed fees and these are approximately 45% of the total account. The rest of the charges are made up of Network Charges (Infrastructure costs to deliver energy to your site), Market Charges (cost of operating the national energy market), and Environmental Charges levied by Federal and State Governments (e.g. LRET, VRET).
All of the above charges are reviewed each year and submitted by the respective Networks to the Australian Energy Regulator for approval. The retailers will then pass on the increases either at the beginning of a calendar or financial year depending on the particular State.
This is generally determined by the energy market and the retailer’s offer of prices at the time of contracting.
Transfer of your energy contract to a new retailer can sometimes take up to 21+ days. It is the function of the new retailer to arrange the transfer which includes the changeover of the meter provided a separate metering contract is not involved. Trans Tasman monitors all client transfers on behalf of its clients to ensure they are completed in time for the commencement of a new contract.
Your metering is contestable and as such you can either allow your Retailer to choose your Metering Provider or otherwise you can establish your own contract directly with the Metering Provider. The Metering Provider will simply charge the monthly cost of metering to your Retailer and that will be passed through on your bill.
The retailer’s validity of offer is critical and must be responded to within the specified timeframe. If not, new pricing will have to be obtained from the retailer and/or other retailers.
The reason being that energy market is extremely volatile and market prices change at very short intervals so the price that the retailer offers would also expire in a short timeframe.
The most important factor in seeking prices is to arrange this well in advance of the end of your current contract. Trans Tasman Energy Group can then advise you the most best time to contract prior to your contract end date taking into consideration the state of the market at particular timings. Whilst we cannot predict what contract pricing will be available in the future, we can say it is currently at a low point and it would therefore be wise to now enter into a forward contract.