Aussie Electricity: From The Generator To Your Door

The electricity that powers our homes is so interesting that it’s positively electrifying! Electricity transmission first started to become widely available in the late 1800s, powering public lampposts, trams, and homes. Since then, it’s changed the way that we live, work and play.

 

Instead of using cumbersome iceboxes, we have fridges; instead of dangerous kerosene lamps, we just flip a switch. But have you thought about how the electricity that powers your home, gets to your home in the first place? Let’s talk about the electricity supply chain!

 

 

Did You Know? 

 

● The first place in Australia to supply electricity to the public was Tamworth, NSW, in the form of street lighting. That was way back in 1888!

 

● Australia’s first electric tramway opened in Melbourne, in 1889, spanning 4km from Box Hill to Doncaster.

 

 

How the Electricity Supply Chain works

In Australia, the electricity chain is divided into three main players: electricity generators, electricity distributors, and electricity retailers. Generators generate electricity; distributors distribute that electricity; and retailers act as intermediaries, purchasing that electricity in bulk from the generators at wholesale prices. Then, they resell it to business and residential customers. They achieve that through various retail products (i.e. electricity plans).

 

Electricity Generators

 

Electricity generators produce electricity, to meet the demands of Australia’s electricity grids. WA and NT have separate electricity grids. But most of the country is powered through the electricity grid on the East Coast, one of the world’s largest interconnected grid. It incorporates around 40,000 km of transmission lines and cables, and powers almost 90% of the Australian population. Electricity generators in Australia may be coal, hydroelectric, wind, solar, etc. Most states are predominantly coal-reliant, but SA generated 60% of its power from renewables last year. 

 

 

Electricity Distributors

 

Generators supply the grid; the grid itself is operated by an electricity distribution network provider. They manage the transmission of safe, secure, and reliable electricity from the generator to homes, businesses, hospitals, schools, and so on. 

 

Let’s review the main electricity markets in Australia. In NSW, there’s Ausgrid, Endeavour Energy & Essential Energy; in VIC, there’s Citipower, Jemena, Powercore Australia, AusNet Services, and United Energy Distribution. There are two main electricity distributors in QLD: Energex and Ergon; NSW distributor Essential Energy also supplies power to customers along the QLD/NSW border.

 

The main electricity distributor in South Australia is SA Power Networks; some remote areas are powered by other distributors. ACT, TAS, and NT both have only one distributor: ActewAGL, TasNetworks, and Power and Water respectively. Lastly, WA is Australia’s last deregulated state power market, meaning that both Western Power and Horizon Power are government-owned. 

 

 

Electricity Retailers

 

Commonly referred to as electricity providers or power companies. These are the “face of power” that Australian residents and businesses deal with when they sign onto an electricity plan; they’re also the entity that you pay your bill to. Here’s a quick guide to residential electricity providers:

 

● NSW & VIC: 20+ companies per market; too lengthy to list here! However, you’ll find the full, current list at Electricity Providers NSW and Electricity Providers Victoria.

● QLD: Only South-East Queensland (SEQ) is deregulated; regional QLD customers are served by Ergon Energy. SEQ customers have almost 20 electricity providers to choose from; get the list at Electricity Providers QLD.

● SA: The most expensive state for power, but also the best performer for renewables! Almost 20 electricity providers to choose from in this market too; check out Electricity Providers SA for the list.

● ACT: There are seven players in this market: ActewAGL, Energy Locals, EnergyAustralia, Origin Energy, Power club, Red Energy, and Simply Energy.

● NT: Most residents have two choices: Jacana Energy & Rimfire Energy. Remote communities are served directly by NT’s electricity distributor, Power, and Water.

● TAS: Again, two choices in this market: Aurora Energy & 1st Energy.

● WA: Synergy

 

So the job of the electricity generator is to make the power, the distributor is responsible for making sure it reaches your home, and the retailer manages the “shop front”. And that’s a wrap!

 

Want to know more? Check out the Australian Energy Market Operator (AEMO) Learning Centre for more powerful info on the power, or mosey over to Econnex for detailed insight about the state of play in Australia’s major power markets.

 

 

1+ million Aussies struggle to pay for power. This tool can help.

 

Aussies have a lot to say when it comes to energy. You could almost say for two people, there are three opinions! But one thing that most of us can agree on: energy prices in Australia are too expensive. That’s why it pays to compare energy plans.

 

Research published by News.com.au found that over a million Aussies were having trouble meeting their power bills in 2020. Energy is one of the biggest cost-of-living expenses for Australian households at the best of times; the dire economic straits many Aussies have found themselves in due to COVID-19 has only worsened the situation.

 

Both the Department of Industry, Science, Energy, and Resources and the Australian Energy Regulator finds that consumers can save hundreds of dollars a year when they compare energy plans. Your savings will depend on factors like:

 

● The number of people in your household

● The state/territory in which you live

● Whether you have rooftop solar panels

● When you use most of your power.

● Discounts, penalties for late fees, etc.

 

For example, let’s start with your electricity bill. Consumers who have been with the same provider for many years are often on “standing offers”. This is a Government-set price cap: the maximum that your energy provider can charge per kilowatt-hour. Fortunately, less than 20% of Aussies in deregulated electricity markets are still on standing offers; but if Nanna hasn’t talked to her power company since 1993, there’s a good chance she’s one of that ~20%.

 

Other consumers are on “default market offers”, the maximum rate that your provider can charge for your plan. Because the market is increasingly competitive, electricity providers often offer a time-limited discount (for example, 1 or 2 years). This motivates customers to sign up; once it expires, they return to the more expensive default market offer.

 

Ankit Jain, CEO of energy price comparison website Econnex, recommends comparing energy plans “every two years, for many reasons. The energy market is changing at a break-neck pace. What seemed like the best deal two years ago may not be the best deal for you now. Too many Australian homes are dealing with bill shock and unaffordable contracts, but the power is increasingly in the consumers’ hands.”

 

“Econnex’s services have already been used by many Australians to analyze energy plans. We aim to disrupt an unaffordable national energy market, by helping Australian consumers to explore options at a glance. With so many consumers overpaying for power, there’s a strong economic case for comparing energy plans; we’re proud to be making that easier.”

 

Econnex also offers users easy-to-understand information about the main conditions of the contract offer; for example, supply charges, usage charges, solar feed-in tariffs, and so on. They also offer consumers the opportunity to switch providers without leaving the website; consumers can authorise Econnex to begin the transfer process on their behalf.

 

Want to find out more information about Econnex? Visit econnex.com.au to get the best deal on energy plan compare.

Econnex: Energy Comparison, Done Better

 

Comparing gas & electricity deals are simpler and quicker than ever, thanks to the Econnex website. 

 

This user-friendly Australian energy comparison website generates deals from dozens of major gas and electricity providers across the country. Unlike other prominent price comparison websites, they offer dollar-value information and list the main conditions of the contract. They also provide helpful guides to the energy markets in respective states/territories, with tailored information about concessions, rebates, etc.

 

The website offers gas and electricity quotes at a glance, simply by filling in a quick form. The form prompts you for information such as your postcode; whether you’re a residential or business billpayer; whether you have rooftop solar; and so on. You’ll then be provided with an at-a-glance list of deals offered by various providers. If you do decide to switch providers, Econnex can process the switch for you, offering an all-in-one solution. Furthermore, Econnex’s services are entirely free to customers; like many price comparison websites, their business model involves charging a small commission to gas and electricity providers. 

 

“Energy prices in Australia have been increasing for the last 10 years, far outpacing inflation. It’s simply not a Fair Go to the average consumer. But the tide is changing, thanks to government intervention and increasing awareness among consumers.” Econnex CEO Ankit Jain explains. “Australian households and businesses deserve a better deal; with Econnex, it’s easier to make it happen.”

 

“Econnex assists consumers and businesses via an energy comparison tool that’s easy and secure to use. We’re delighted to have helped so many Aussies regain power over their power. Making informed decisions about energy comparison is better for all of us.”

 

With energy comparison traditionally involving waiting on hold, interacting with salespeople, and manually comparing offerings and contracts, Econnex’s value proposition is clear: a simpler way to compare energy plans and get the best deal possible. However, as Mr. Jain highlights, “one dimension does not meet all when it comes to electricity and gas comparison. That’s why we also highlight the main conditions of each contract offer. For example, peak/off-peak plans save money for consumers who don’t use much power during the daylight hours.

But they can lead to bill shock for people who work at home 9-5 pm. It’s not enough just to say how much a plan might be for the average household; we help people understand that it’s not just how much, it’s how you use your power. Other price comparison websites may just focus on price; we aim for robust energy comparison that’s genuine of service to our customers.”

 

For more information about the Econnex service and to get started, visit their Energy Comparison tool.

 

Econnex’s energy comparison services are currently available in NSW, ACT, SA, VIC, parts of QLD, TAS & WA (only Gas).