Savings as a Service - Issue #3
Some big news from the ACCC is that retail electricity bills have fallen to an 8-year low. The main driver for this price change is decreasing wholesale electricity prices due to new supply from renewables now coming online at scale.
This is the first newsletter from 2022. It’s already been a big year for the Bill Hero team—we survived our first COVID case, but we’re back at full strength, ready to deliver Savings as a Service for Bill Hero subscribers through 2022 and beyond.
Some big news from the ACCC is that retail electricity bills have fallen to an 8-year low. The main driver for this price change is decreasing wholesale electricity prices due to new supply from renewables now coming online at scale. Many people scratch their heads when they hear news like this, wondering why if prices are down, their bills are just as high as ever. There are two main reasons why you might feel this way:
The first reason is that wholesale energy costs only account for about a third of your retail bill—the rest is made up of transmission, distribution, retail and environmental costs—so decreases to the wholesale prices do not manifest 1:1 as reductions in retail bills.
The second and more important reason is our old friend the Loyalty Tax—retailers are always faster to offer more competitive acquisition prices to new customers, than they are to pass through wholesale price reductions as savings for their existing customers.
Your optimal strategy as an energy consumer is to compare frequently, since the best pricing will inevitably be offered to new customers well before it’s made available to existing customers.
The retail business model relies on the fact that comparing frequently is too hard, too boring, and too confusing, so most people keep putting it off.
This is why Bill Hero changes the game—we make a detailed, personalised comparison for you on every single bill, so you’ll always know if there’s a better option available to you in the market.
Thanks for reading Savings as a Service.
Retail energy news
Australians are being encouraged to shop around to get a better deal on their power bill after a new report found household electricity prices are at an eight-year low.
Summer is here at last! We’re loving the heat, but we’re not loving the air conditioning bills! Here’s the Bill Hero approach to minimising your energy consumption during the summer months.
Beat the heat
The best way to minimise air conditioning expense is to minimise air conditioning use.Insulation is the best single investment for maximising comfort and reducing energy usage in your home. Up to 50% of the energy used to cool an uninsulated home is wasted through leaks and poor insulation.Aside from insulation, here are some cost-effective ways to minimise heat in your home:
- Use shade to minimise direct sunlight on windows, especially if they face north or west. Get permanent, natural shading by planting trees and bushes outside windows and walls.
- Close your windows and curtains during the heat of the day.
- When things cool off outside in the evening, open all your windows or doors to maximise flow-through ventilation.
- Seal all gaps around your windows and doors with weather strips.
- Avoid using your oven in the hottest part of the day.
- Choose LEDs for lighting. These emit less heat, use 75% less energy and last up to 10 times longer than halogen globes.
Look for the new Zoned Energy Rating Label (ZERL) for detailed energy efficiency information. ZERL provides a seasonal efficiency rating for 3 climate zones across Australia to assist you in selecting the product most suited to your region.
Use your air conditioner only when necessary, and set the thermostat between 25°C and 27°C. Every degree higher can save up to 10% on your energy use.
If your air conditioner has a compressor unit that sits outside, give it some shade, so it doesn’t need to work quite so hard.
To ensure the system continues to operate efficiently, servicing should be done by a licensed technician. Cleaning the dust filters will improve efficiency and can be done by the householder.
Consider using fans instead of air conditioning whenever possible.
Keep your cool
You can minimise reliance on cooling with a few simple tricks:
- Adjust your routine to spend hot days in cooler public spaces if possible, such as shopping during the day instead of the evening.
- For an instant cool-down, spray yourself with a mist of water or drape a moist towel around your neck.
- Wetting your wrists and other pulse points will also cool the body.
- Opt for loose and light-weight clothing made from natural fibres and breathable fabrics, and wear lighter colours.
Review of the month
Another month, more great reviews from happy subscribers. Here’s one of our recent favourites, and you can see them all at https://billhero.com.au/reviews