Fixing electricity rate?

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mrphil

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#139301 4-Feb-2014 06:42

with all the talk of fixing mortgage rates, what about fixing in your electricity rate?

genesis energy sent a letter saying i could lock in my electricity rate for the next 2 years.

daily fixed charge electricity - cents/day (current price 75.00) fixed price 78.75
variable composite rate electricity cents/kWh (current price 21.53) fixed price 23.58

is it worth fixing in the rate?

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#979858 4-Feb-2014 07:03

Only if power per unit prices go up 20% in two years. The daily rate is almost irrelevant, 4c/day is $1.20/month.

sbiddle

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#979863 4-Feb-2014 07:19

I've seen letters from power companies before trying to lock in fixed contracts but I've never seen one try and lock in a fixed contract and a price increase at the same time!

johnr

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#979864 4-Feb-2014 07:20

Got the same letter read Terms and threw it away

Batman

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#979865 4-Feb-2014 07:25

Yeah almost died seeing that!

Sign a contract that renews without your permission and they increase the price!

Well done Genesis you have made me look at other power companies now!

gregmcc

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#979867 4-Feb-2014 07:30

mrphil: with all the talk of fixing mortgage rates, what about fixing in your electricity rate?

genesis energy sent a letter saying i could lock in my electricity rate for the next 2 years.

daily fixed charge electricity - cents/day (current price 75.00) fixed price 78.75
variable composite rate electricity cents/kWh (current price 21.53) fixed price 23.58

is it worth fixing in the rate?

Got the same letter, had a look at the T&C, if you break the contract there are $$ to pay, if Genesis break it - nothing, so I threw it away

mrphil

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#979868 4-Feb-2014 07:41

thanks guys

in the recycling bin it goes

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ahmad

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#979883 4-Feb-2014 08:19

When I was offered a fixed rate that was cheaper by another company I asked genesis what they could do to keep me as I didn't want to switch. They said nothing. Last night they called and asked if I wanted to fix for higher. Yeah.

sbaird

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#979889 4-Feb-2014 08:46

Got the same letter from Genesis,
Funny thing is it was after I had switched and fixed it 2c cheaper with contact!

Shoes2468

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#979893 4-Feb-2014 08:50

ahmad: When I was offered a fixed rate that was cheaper by another company I asked genesis what they could do to keep me as I didn't want to switch. They said nothing. Last night they called and asked if I wanted to fix for higher. Yeah.

Which company offered, you a lower fixed rate? if you don't mind me asking, and in what region are you in?

wellygary

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#979895 4-Feb-2014 09:02

mrphil: with all the talk of fixing mortgage rates, what about fixing in your electricity rate?

genesis energy sent a letter saying i could lock in my electricity rate for the next 2 years.

daily fixed charge electricity - cents/day (current price 75.00) fixed price 78.75
variable composite rate electricity cents/kWh (current price 21.53) fixed price 23.58

is it worth fixing in the rate?

To quote Darryl Kerrigan "tell 'em they're dreaming"

They want you to guarantee them an almost 9.5% increase in actual power charges( excluding fixed line charges which are regulated) over two years, with overall electricity demand actually falling and an excess of generation capacity.

nzkc

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#979922 4-Feb-2014 09:53

When I was with Mercury I got "invited" to join their fixed term contract for a number of years (2 or 3 from memory). Gave it all the "prices have been growing on average x% a year, we're offering you this rate which is only y% blah blah". They even phoned me about it trying to persuade me to join up. I asked the question "What happens if the prices drop?", the lady on the phone didnt know and had to ask! I knew what the answer would be. I politely turned them down. I then switched to PowerShop. Mercury soon phoned me back and offered me $200 to stay, told them they should have offered me that before I left (I contacted them before I signed with PowerShop too but they didnt want to offer me anything).

Then recently I saw this: http://www.stuff.co.nz/dominion-post/business/8548633/Power-users-caught-in-fix

I'm glad I didnt fix.

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ahmad

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#979944 4-Feb-2014 10:02

Hi to the person that asked (sorry I can't quote on mobile site) I am in Dunedin and the offer was personalised via telemarketing so not available otherwise.

This is a very good point from that story linked above:

"If a retailer is offering you a two or three-year contract, that is a great time to seek significant savings because they know that if they get you they have got you for two to three years."

nakedmolerat

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#979982 4-Feb-2014 11:07

This is a really good post and why I am glad I have moved with Powershop. First month with them, this is the first time my bill is less than $150. The lowest it has been for the last couple of years was $250 and as high as $380 in winter.

ahmad

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#979985 4-Feb-2014 11:11

nakedmolerat: This is a really good post and why I am glad I have moved with Powershop. First month with them, this is the first time my bill is less than $150. The lowest it has been for the last couple of years was $250 and as high as $380 in winter.

YMMV - Powershop has been bloody expensive in Dunedin for years. I saved a savvy geek hundreds of dollars when he switched to Genesis a couple of years back and PS remains bloody expensive in this region.

Batman

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#979987 4-Feb-2014 11:13

can you tell me how you do powershop? buy lots of power when it's cheap is it? does it go up and down like the NZD?

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