About competition and contestability

Is there competition in the Tasmanian electricity market?

Yes. Since 2006 the state government has gradually introduced competition into the Tasmanian electricity retail market, starting with the largest business customers and progressing to smaller businesses.

Which customers are open to competition?

The table below shows the timeline of competition introduction to groups of business customers (known as 'tranches') according to electricity consumption per site in a 12 month assessment period.

* 1MWh is equal to 1,000KWh.

What does 'contestability' mean?

The introduction of competition into the electricity market is called 'contestability' and gives certain customers the opportunity to choose their retailer and enter into an electricity contract with them. These are called 'contestable' customers because different retailers can 'contest' for their business by offering them contracts.

Do all contestable customers have the same options?

No. Tranche 1 to Tranche 4 customers are classed as Large Offer Contestable Customers (LOCC), while Tranche 5a customers are called Standing Offer Contestable Customers (SOCC).

The two groups have slightly different regulations applied to them. The main difference is that LOCC customers must enter into an electricity contract, while SOCC customers have the option to remain on their tariff. More information can be found at www.power.tas.gov.au (external link)

Find out more information about Standing Offer Contestable Customers.

How do I know if I am a Large Offer Contestable Customer?

Aurora will notify you if you become a Large Offer Contestable Customer. Contestability is decided on electricity consumption at one location. If your business spends over $30,000 on electricity per year at one site (or uses over 150MWh per site per year) then you will become a Large Offer Contestable Customer. If you are unsure you can call Aurora on 1300 13 2045 and we can check for you.

I am contestable, what should I do now?

Simply request a quote or call Aurora on 1300 13 2045. Our qualified business team will arrange a quote for you and explain the contract charges and how they differ from your tariff.

Do I have to move 'off' tariff?

Yes, if you are a Large Offer Contestable Customer you will be required to move off tariff onto a contract within 12 months of becoming contestable.

Who do I contact at Aurora if I have questions about contestability?

Aurora has a dedicated business team who can be contacted on 1300 13 2045, Monday to Friday, 8am – 6pm.

When do contestable customers have to secure a contract?

When Large Offer Contestable Customers become contestable there is a grace period of 12 months during which time you can remain on regulated tariffs while making contract arrangements. If you have not secured an electricity contract by the end of the grace period your account will be placed on a Deemed Fallback Contract, which could cost your business more. It is in your best interest to make sure you enter into a contract before the grace period ends.

What are the benefits of contracts for my business?

Some benefits of Aurora's contracts for Large Offer Contestable Customers are:

• You can better predict and budget for your electricity expenses because the retail portion of the contract electricity rates are locked in for one to three years.
• You get contract prices specific to your business type, compared to tariff prices that are set to cover all businesses.
• You see all components of your bill because they are not rolled into a bundled tariff price.
• You can potentially save with contract retail Peak and OffPeak pricing if you are able to transfer some of your load to OffPeak times.
• You may access lower electricity prices than your tariff, depending on electricity prices available and your electricity consumption patterns.
• You will have an interval meter installed, which may allow you to better track and manage your electricity use.

How long are the contract prices that are quoted to me valid for?

Aurora has new contract prices available for Large Offer Contestable Customers from week to week. When you are quoted a contract price ensure you check its validity date.

What if I have other sites that are already on a contract?

You can roll your newly contestable sites into your existing contract.

How long will Aurora's electricity contract be?

Aurora offers one, two or three year contracts for contestable customers.

Will the price go up or down on a contract?

Electricity contract prices available to Large Offer Contestable Customers can change from week to week. Aurora can provide you with a quote for the best electricity price available at the time and explain how it compares with your current tariff. The price you accept is locked in for the duration of the contract. However, similar to your current tariff price there are associated charges. On contract these charges include market fees, distribution/transmission losses, metering services and network charges, that are passed on at cost and may change without notice.

Will I receive the same quality and safety of electricity on a contract?

Yes. Regardless of who your retailer is, you will be guaranteed the same quality, safety and reliability of your electricity supply on a contract through Aurora's Network Division (i.e. the poles and wires).

Will I need a new meter?

All Large Offer Contestable Customer sites in Tasmania will be fitted with an interval meter which records energy use in half hour blocks, and is remotely read for billing purposes.

How will Aurora help?

Aurora will work with you to guide you through the transition to an electricity contract. To find out more about an electricity contract please call our dedicated business team on 1300 13 2045.