News

Dear NextGen Customer,

New Residential Price Plans, effective 1st March 2019

Firstly, thank you to all of you who have supported our growth over the past 3 years. Through your referrals and word of mouth, we have grown to now serve over 800 customers in the Top of the South.

NextGen Energy was established as a social enterprise company to create value from the power industry and return that value to schools and charities in the form of annual donations, and to our customers in the form of low prices.

We are pleased that even in the face of increased market volatility, increased competition and our own growth costs, we have been able to maintain our original prices to customers since we began in September 2016 and have consistently offered the best value in the regions we serve.

Market Changes

Despite that success to date, we, like all retailers, now need to review our pricing in the light of unprecedented market conditions over the past year. We had hoped that these market changes were temporary seasonal fluctuations from the generation side of the industry caused by low hydro levels, problems with gas and coal supply and more. However, it now appears that these changes are becoming permanent, with the net effect being that the price of wholesale electricity continues to increase over the months to come. Whilst this will financially benefit the big generators, it will negatively impact retail suppliers, and we believe that all power retailers, big or small, will have to increase their prices during 2019.

Wholesale (Spot) Market increases

The following graph shows the wholesale (spot) cost of the electricity that we purchase to supply to you, as an average across the past 3 years.

You will see that the average wholesale cost of power has doubled over the past 2 years, and that this increase has been absorbed by NextGen and not passed on to you, our customer.  The situation has worsened into 2019 already, with the average price so far this year increasing to $132/MWh and a forecast of no or little change.

In 2018 alone, NextGen subsidised our customers’ low power bills by more than $250,000.

Wholesale Market volatility

The next graph shows how the price of power has changed on a daily basis since the 1st January this year.

You will see that the cost of buying power for the whole month so far has typically been much higher than our selling price to you our customer. Whilst the big generating companies keep these prices high, smaller independent retailers like us will continue to be squeezed.

What does this mean for me and for my nominated school or charity?

In simple terms, NextGen is currently losing money on every unit of power that we sell. That means we are unable to donate money to the schools and charities we were established to support.

This is clearly a situation that cannot continue, and we are writing to inform you that unless we increase our prices to reflect the new changing cost of power, we will be unable to continue to raise funds for good causes in our community – our principal reason for operating.

When does the new pricing come into effect?

We have had the situation under review since last Spring and have purposely delayed adjusting prices until after Christmas, and to time their effect when our customers are using the least amount of electricity.

The new price plans will be effective from 1st March 2019 and are shown on our website at the following links, Nelson, Tasman, Marlborough.

These prices will be used on the 4th April billing date for March usage. We believe that these new prices still represent the best value for money, with no minimum term contracts and no exit fees. We hope that you will continue to support us. If the market returns to ‘normal’ levels of pricing, we will review our options to lower prices.

What else is NextGen doing?

Exposure to the spot market is typically a major component of how most, if not all, power companies price their plans to customers. To avoid the volatility and fix prices long term, NextGen is currently rolling out plans to be able to generate its own power from large-scale solar farms during 2019. Resource consents are currently being reviewed on the first solar farms that will be built in Tasman. We plan to construct farms in Nelson and Marlborough towards the end of this year, or early next year.

Will you be able to reduce prices, or fix my prices long-term?

Yes. Once the solar farms are built and operational (hopefully by mid-year), we will be able to offer fixed rate price plans for 5, 10 and 20-years – great deals that will not be able to be matched by other retailers.

I already have solar and/or battery systems from NextGen. Is my price increasing too?

No. If you currently have technology solutions from NextGen Energy then your price is already fixed for 10 or 20 years, dependent on your plan.

What are the technology alternatives to continually increasing prices year on year?

Long-term fixed-price power options remain available from NextGen:

  • our offsite solar365 program can reduce your monthly bill by as much as 100%
  • our battery energy storage systems provide flat-rate bills as low as $9 per month,

Please see our website or contact us and we will be pleased to provide you with details and costs.

Thank you for your understanding and for partnering with us in serving our community.

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.

We now accept Bitcoin!

The world may have gone mad on bitcoin, but it remains a valid way to pay your bill.

If you would like to receive details, please contact us and we’ll reply with instructions and our wallet address.

 

In the meantime, here’s a copy of the Press Release announcement:

Nelson, New Zealand (11 Jan 2017) – Nelson-based power retailer NextGen Energy announces it is now accepting Bitcoin for payment of electricity bills. The social enterprise company operates as a not-for-profit, uniquely donating all net profits to local schools and charities.

“NextGen Energy is creating disruptive opportunities within the NZ electricity sector, and actively pursues the adoption of new technologies.” says Tom Wheatley, CEO, “NextGen is already supplying power to a number of crypto-currency mining operations, and the ability to pay for the power in Bitcoin simply makes sense. We are now extending this option to all our customers.”

The company is also active in developing blockchain based technology applications for data transfer, meter reading and peer to peer trading applications, as well as electric vehicle charging payments.

This move by NextGen makes them the first power company in NZ to accept Bitcoin payments.

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NextGen Energy and Victory Community Centre join forces to support local community

At NextGen Energy, we believe in the principle of being in business to help others. We believe in contributing to making the world a better place. We believe in the power of sustainability, the importance of saving energy and money. And we believe in giving back.

We created our community partner program to foster strong partnerships that drive change. We want to support our local communities. Because community connects people. Together, we are stronger. Together, we can support each other better.

This is why we are very excited to welcome Victory Community Centre, our newest community partner on board. VCC is one of the biggest community centres in the Nelson/Tasman Region. They offer a wide range of community health & family supports and services, and co-ordinate a large program of activities and events.

By becoming NextGen Energy’s strategic partner, the Victory Community Centre will be able to access cheaper electricity and save on its power bills. Also, every NextGen customer will have the opportunity to support any of our existing partners, including the Community Centre.

If you would like to find out more about our Community Partner Program, how to become our partner or how to support our partners, click here.

New partnership with Nelson Marlborough Rescue Helicopter

Photo: Nelson Marlborough Rescue Helicopter

We are proud to welcome on board the Nelson Marlborough Rescue Helicopter Trust as our new community partner.

The Nelson Marlborough Rescue Helicopter Trust administers a professional air rescue service throughout the Nelson, Tasman, Marlborough & Buller regions.

Each year they assists in over 450 missions. These include medical emergencies, motor vehicle accidents, search and rescue, industrial and rural accidents.

At NextGen Energy, our business model is centered wholly around the principle of being in business to help others.

We believe in strong partnerships that drive change and contribute to a more sustainable world.

This is why we donate 100% of our net profits to schools and charitable or social causes chosen by our customers. Now, Nelson Marlborough Rescue Helicopter is one of them.

If you would like to know more about our Community Partner Program, click here.

 

Rooftop solar designed for architects


Rooftop solar designed for architects!

NextGen Energy has come up with a solution that should please those architects and designers keen to preserve the simplicity and integrity of a clean roof line.

If you would like to design a home/building using solar energy, but you would rather keep your rooftop stylish and the panels out of sight, this might be exactly what you were looking for: solar365_Architects_2017

For more information on solar365, click here.

Solar energy without the panels!


We are introducing our solar365™ plan,

offering all the benefits of solar power, at around HALF the cost and
with NO rooftop panels.

 

Up until now, the upfront cost of installing solar panels has been a major obstacle for many homeowners. And those renting haven’t had an option to ‘go solar’.

Now we’ve made it a whole lot easier and more affordable.
With NextGen’s solar365, it’s a lot cheaper AND no rooftop panels needed.

Available exclusively in New Zealand from NextGen Energy.
For more information, visit our website here.

Hello and Welcome!

We are so thrilled to have you on board among our very first subscribers and clients. We also would like to thank all of you  who are showing interest in our company. We are proud to launch NextGen Energy’s News section. By reading this post, you have just become part of a growing NextGen community, joining us on a mission to innovate change in the NZ electricity industry. To create a more sustainable and a socially equitable future. To care for our environment. And for each other. Inspiring, isn’t it?

It’s hard to believe that after 18 months of preparation, a successful audit and great teamwork, the work has paid off and NextGen Energy, New Zealand’s first and only not for profit power company was launched in Nelson/Tasman in October 2016. The initial kick-off period has been hectic, with setting up the business, making sure everything is functional, and paving the way to some solid, long lasting partnerships.

We are proud to say that we have started to provide clean, reliable, low-cost electricity to our residential and business customers all around the Nelson-Tasman region, and equally proud to have laid the foundations for much needed donations to local schools and charities.

We expect 2017 to be full of new experiences, positive change, a growing and thriving community, developing new projects, and continuing to supply affordable (and renewable) energy for all our new customers.

We are glad to have you on board, and we are truly looking forward to delivering positive benefits for you and your community.

The NextGen Team