Residential customers on a negotiated electricity supply agreement - Q and A

On 1 July 2008 the cost of electricity will increase for most households and businesses.

 

These pricing changes are in accordance with the NSW Independent Pricing and Regulatory Tribunal (IPART) decisions and recent legislative changes, and will directly help to ensure the continued efficiency, safety and reliability of the State’s electricity network.

 

Why have my electricity charges increased?

Integral Energy has adjusted both network and retail prices in accordance with the determinations of the Independent Pricing and Regulatory Tribunal (IPART).

This adjustment occurs across the electricity supply industry in NSW from 1 July 2008.

 

IPART is an independent body that regulates the maximum prices charged for monopoly services in the water, gas, electricity and public transport sectors in New South Wales.

 

IPART provides a fair and transparent review process for Integral Energy and other electricity businesses to change their prices.

 

As a result of this year’s pricing adjustment, the regulated domestic electricity rate has increased approximately 8.3% or $84 per annum ($1.62 per week) for the average residential customer consuming 6,000 kilowatt hours of electricity per year. 

 

This cost increase includes increases in the Consumer Price Index (CPI).

Integral Energy's electricity charges from 1 July 2008 reflect a number of factors including increases in:

•          the cost of wholesale electricity

•          network charges to fund improvements in network reliability

•          the costs of operating in the competitive retail energy market

 

How much will my bill go up?

As a result of this year’s pricing adjustment, the regulated domestic electricity rate has increased approximately 8.3% or $84 per annum ($1.62 per week) for the average residential customer consuming 6,000 kilowatt hours of electricity per year. 

 

These cost increases include increases in the Consumer Price Index.

 

What is the benefit to me as a customer from these price increases?

In the last three years Integral Energy have invested $250 million in our network, and over the next 5 years Integral Energy will be investing $1.2 billion.

 

What are my options if I want to terminate?

If you choose to terminate your Negotiated Supply Agreement prior to the end date of the agreement you can either return to a standard form contract or choose another retailer, however, if you do so you will be charged an early termination fee. The details of this fee are outlined in your Terms and Conditions booklet under condition 12. The early termination fee is $95.

 

You may terminate the Negotiated Supply Agreement without penalty at any time up to 10 days after your Negotiated Supply Agreement commences by written notice to us.

 

Can I choose another energy supplier if I am not satisfied with Integral Energy?

Yes, you can, however, please note that our competitors are also expected to increase their prices.

 

You are required to pay the applicable early termination fee which is set out in your agreement. The details of the early termination fee are set out at conditions 12 of your Terms and Conditions brochure.  The early termination fee is $95.

 

Do I have to pay an early termination fee?

You are required to pay the applicable early termination fee which is set out in clause 12 of your Terms and Conditions. The early termination fee is $95

 

How will it appear on my bill?

If your billing cycle means that your bill incorporates usage before and after 1 July, then on your next bill you will be able to see the new charges relating to post 1 July pricing as they will appear under the heading 'New rate period' for each of your tariffs.   

 

Who approved the new prices?

The price adjustment was reviewed by the Independent Pricing and Regulatory Tribunal, the independent pricing regulator.

 

If you require more information in relation to IPART’s decision, please visit their website which can be found on www.ipart.nsw.gov.au.

 

Are pensioner rebates changing?

No, customers who currently receive pension rebates will continue to receive their entitlements at existing levels. The NSW Government has not announced any changes to the rebate.

 

Will my price go up again?

Prices are reviewed every 12 months by IPART and implemented on 1 July.

 

When will my bill increase?

These prices take effect from 1 July 2008. 

 

How will Integral read my meter before and after 1 July?

As we may not read your meter on 1 July 2008, your first bill after 1 July 2008 will display the increase in regulated rates.

Meters are read throughout the year according to a tightly-planned schedule. Unfortunately, it is not practical or feasible for Integral Energy to read hundreds of thousands of meters on 30 June or 1 July. For this reason, and in accordance with the Energy Supply Regulation 2001, we pro-rate your consumption for the purpose of calculating your account where a rate change has occurred. For example, if your account was for a 90 day period ending 31 July 2008, you would be billed for 59 days (3May08 to 30Jun08) at the old rate and for 31 days (1Jul08 to 31Jul08) at the new rate.

 

Do I have to do anything if I am on direct debit?

No, your new amount will automatically be debited from your bank account as per your nominated date.

 

Why wasn’t I told that my prices weren’t fixed?

We take a lot of care to ensure that all important information is available to you at the time you make your decision to take up a Negotiated Supply Agreement.  The information on rate changes is also in the terms and conditions booklet that was given to you before you signed with us on page 2 under Frequent Questions and outlined in Conditions 7 & 8 on pages 16 and 18.

 

I don’t like these changes to your prices – who can I write to?

If you would like to make a formal complaint, please write to our Customer Care section, detailing what aspects of the changes you are concerned with and we’ll respond to you either in writing – or one of our staff will contact you to discuss the matter further. Please address your letter to Customer Care, Integral Energy, PO Box 6366, Blacktown. You can send a fax to Customer Care via 9853 5184 or email : integral@integral.com.au

 

What help is available if I am having difficulty in paying my account?

Integral Energy provides a range of flexible payment options to our customers. You can discuss these options with our Customer Call Centre representatives.

 

If I have a Low Rate Deal product, what does it mean when you say the retail cost component of my energy supply charge and systems access charge will not be changing?

If you have a low rate deal product the retail cost component of your energy supply charge and systems access charge is protected and will not change. You are only affected by changes in the network cost component of your energy supply charge and systems access charge will change.

 

I have an Agreement with Integral Energy and live in the Energy Australia/Country Energy Network.  Why have my prices increased so much compared with last year?

The Regulated Rates in your network area have increased in line with the Determination of the Independent Pricing and Regulatory Tribunal of NSW. Integral is passing through these cost increases to you under the terms of your contract with us.

We are unable to comment on the reason for the price increases for other network areas, ie, Energy Australia and Country Energy.  Like Integral Energy, EnergyAustralia and Country Energy submit an application to have their prices approved by IPART.

 

The good news is you will continue to receive the benefits from your product throughout the term of your Agreement.

 

How do the prices compare with other retailers?

Generally speaking, the regulated rates in the Energy Australia and Country Energy network areas are likely to increase.  However, we are unable to give you the competitor’s regulated rates.  Please refer to the EnergyAustralia and Country Energy websites. You can also visit the IPART website www.ipart.nsw.gov.au.