Call for transparency in business power pricing
Unclear and inconsistent pricing means many businesses are overpaying for their power by up to thousands of dollars a year, according to one electricity retailer.
Ari Sargent, CEO of online retailer Powershop says a lack of transparency in pricing makes it difficult for businesses to know whether they are paying over the odds for their power.
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Unclear and inconsistent pricing means many businesses are overpaying for their power by up to thousands of dollars a year, according to one electricity retailer.
Ari Sargent, CEO of online retailer Powershop says a lack of transparency in pricing makes it difficult for businesses to know whether they are paying over the odds for their power.
“Business pricing is far too complicated. Identical businesses in the same town with the same power company havebills that vary by hundreds, and sometimes even thousands of dollars a year. It’s grossly unfair.”
Sargent believes all power companies should clearly outline their different pricing plans available to their customers.
“Some power retailers put business customers on what they call ‘standard’ pricing, which is in fact more expensive than what they offer other customers. Rather than offering the best deal straight off the bat, they wait until customers push them for better pricing,” Sargent says.
Powershop’s estimates show a difference of up to 23% between its business rates and the standard business rates of Contact Energy. Based on its forecast rates over the next year, Powershop estimates it can save some businesses currently with Contact Energy up to $4,500 based on their location and how much electricity they use.
Sargent says business owners will be able to put their power consumption out for tender when the Electricity Authority’s “What’s My Number” SME campaign kicks off in August.
“I suspect many businesses will be surprised and annoyed to find out how much they’ve been overpaying for their power."
Note: Powershop’s total cost per annum is based on network rates for the year April 2012 to March 2013, and Powershop’s current forecast of its rates for the next year. Powershop’s rates are based on a typical Powershop business customer’s monthly consumption profile. Costs are based on its typical monthly consumption profile. Powershop’s costs are based on a typical monthly consumption profile. Contact’s costs are based on its pricing disclosure effective from 1 April 2012 with a 10% prompt payment discount included. These rates don’t apply to any Contact customer who is on a contract or other special deals.
