Spot price electricity

Spot price electricity

Tempted by buying at wholesale prices from companies such as Flick Electric and others?

Whilst their websites make it all sound very easy and glamorous, with “no-risk ways” to save money, there’s a catch…. to review this month’s ACTUAL power prices that you would have paid by buying at spot rates,take a look at the graph.

Since 1st August, the early morning and evening peak times have suffered from extended periods (several hours at a time) of high spot prices, largely caused by high demand coupled with little or no reserves offered by the big generators.

So instead of a typical spot price of 8 cents per unit (Stoke GXP), the price has averaged up to 40 cents and peaked at 93 cents per unit – that’s almost a dollar per unit of power.

If you typically use 6-10 units of power after 5pm (which most homes do), then isntead of paying a spot price of 80 cents for the peiod, you would have paid up to $4 for the same period…. and so if these extended prices continue (which seems to be likely), then this could add an extra $100-$120 to your bill for the month.

 

Spot purchasing over extended periods (years) CAN offer a saving – but this is the risk that NextGen Energy takes on your behalf.

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