(WA) Simply Energy Gas Price Rise

Hi all,
Have been with Simply Energy for gas in WA on their NRMA Blue plan for almost 5 months now, and I just received an email notifying me of their planned price rise on July 1.

Current Charges:
Supply Charge 0.21967 $/day
First 4380 UNIT per annum 0.15169 $/UNIT
Remaining Usage per annum 0.13684 $/UNIT

Prices effective July 1st 2021:
Supply Charge 0.31251 $/day
First 12 UNIT per day 0.15202 $/UNIT
Remaining Usage per day 0.13739 $/UNIT

Did anyone else receive a similar email? A 42% price increase on the supply charge seems pretty ridiculous, given I've not even been with them for 6 months yet.

Should I consider looking around for a better deal?

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Simply Energy
Simply Energy

Comments

  • -1

    Should I consider looking around for a better deal?

    No, I think you should avoid bargains. Its not like the government will have energy made easy for plebs!

    • Uhhh.. what?

  • Aren't WA gas prices regulated? Doubt there will be much difference between retailers if so.

  • +1

    I received same. The daily supply charge is regulated and capped in WA, and the ERA has not advised of a change.

    I'm not sure how Simply can raise the price above the cap.

    Origin is also advising of changes but there is no detail on their website.

    Is it possible Simply Energy knows of price changes that are yet to be announced and was a bit premature with communicating the changes?

    • Finally, a comment by someone with half a brain.
      I guess that could be possible. How do we go about looking into this further? Do you know what the exact value of the ERA cap is?

      • +1

        I haven’t been able to find anything that shows a price rise this year, let alone a huge increase in supply charges they’re going to be charging you - https://www.wa.gov.au/organisation/energy-policy-wa/househol…

        I haven’t received anything from Kleenheat about any price increase, and no company can charge above what the cap is set at.

        • +1

          The other possibility is that Simply's 50% deal is made under the terms of a "standard market contract" and I've waived my rights to capped charges?

          (I think they're the words I read, but to be honest, between ERA, Energy Coordination Act, and the retailers Ts&Cs I've been doing legal circle work for a few days.)

          The main reason I went with Simply was online only, direct debit, set and forgot, and now it seems I'll need to call them or just switch again. But there's no point doing that if there's a market wide price rise.

          Someone will need to sit me down and explain the consumer benefits of regulated deregulation in a market as small and isolated as ours.

          • @medjerk0: Reply I received from a member of the "Customer Advocacy Team" this morning;

            I am here to answer your query of the price changes, every year the rates are checked and adjusted some times they go down but most of the time they go up to accommodate for insurances price rise from the distributor for the power or gases.
            We do the check on our end and re evaluate if we need to change our pricing to cover the inflation of these costs, normally we will bring new plan s out at the same time to assist in compensating for the rise.
            After this date you can check online to see if we have any new plans available and change onto them if they will help lower your costs.
            I hope this assists in clarifying the price rise please don't hesitate to contact me further .

            If you have any further concerns, please contact Simply Energy on 13 88 08 (8: 00am-7: 00pm EST Monday to Friday) and one of our friendly energy consultants will be happy to assist you further. Alternatively if you respond to this email one of our Customer Advocacy Team will be in contact with you as soon as possible within the next 2 business days to discuss the account further.

            I've replied seeking further information - will update with their response.

          • +1

            @medjerk0:

            The other possibility is that Simply's 50% deal is made under the terms of a "standard market contract" and I've waived my rights to capped charges?

            Unless I’m missing something, I don’t see how it’s possible that Simply Energy can ever get around being able to charge anyone more than the regulated cap for the supply charge, only ever lower.

            Small use customers can choose to buy natural gas from any licensed gas retailer. These retailers cannot charge above the regulated price cap when offering to supply small-use customers under a standard form contract, but can offer lower prices through non-standard form contracts.

            • @Nousernamehere: Finally heard back from their Customer Advocacy Team today - this is what they said;

              The daily rate has increased by .09284c per day thius would bring your daily usage from roughly going off your invoice around $14 to $20 each invoice.
              I hope this assists due to the inflation costs we have had to put the prices up to compensate.
              I apologise but this is a Simply Energy decision across the board.

              Wow. Helpful..
              The frustrating thing is that it's probably not even worth switching providers, on account of all the fees I'd likely be charged in order to change over my service. Bastards.
              Would still love to know how they're able to raise prices if the ERA hasn't announced a rise across the board..

              • +1

                @[Deactivated]: Thanks for posting - i just havent had a chance to contact them.

                The way that is written means the increase is zero point zero nine cents, ie. point one of a cent, which is not what the notice says, but would be closer to inflation.

                The notice states a near 10 cent increase in the daily supply charge.

                So could it be a typo?

                To be perfectly honest, our gas usage is so small that I would waste more of my time [and value of my time] on hold than what it takes to change to another 50% off supplier.

            • @Nousernamehere: So maybe I've signed a non standard contract?

              • @medjerk0:

                So maybe I've signed a non standard contract?

                As I quoted in my last post, that only allows them to charge less than the cap rates, not more.

                These retailers cannot charge above the regulated price cap when offering to supply small-use customers under a standard form contract, but can offer lower prices through non-standard form contracts.

  • +1

    I called Simply and they said the same "to reflect increase costs", etc. My enquiry was escalated when challenged the explanation but with a 10 day turn around on a response.

    I've contacted Energy Water Ombudsman but their process is to return the complaint to a designated contact at Simply. Which I suppose closes the loop but logically doesnt make sense unless suppliers in the regulated market are expected to self-regulate. (I'm not angry, just disappointed…)

    I also asked the E&WO a leading question about whether I could have inadvertently signed a contract that allowed higher charges, but havent heard back on that one.

    • Cheers for following up, appreciate it. Here's hoping we get some sort of accountability from Simply for this.

  • +1

    I was right - I have inadvertently signed a 'market contract'.

    From Energy Policy Coordination Unit:

    "The Energy Coordination (Gas Tariffs) Regulations 2000 impose a maximum price for gas tariffs which, from 1 July 2021, is comprised of a daily supply charge of 22.23c and a consumption charge of 15.35c (for the first 12 units per day and, thereafter, 13.84c per unit). This regulated maximum tariff applies to customers supplied on a standard form contract.

    However, prices for market contracts are unregulated. Customers on these contracts are usually provided a discount to the daily supply charge and/or consumption charge with reference to the regulated price. Although uncommon, gas retailers can charge customers above the regulated price for customers on market contracts. As a market contract is an unregulated product, retailers can determine the rate of increase to the daily supply charge and consumption charge. Therefore, Simply Energy is not breaching any legislation if charging customers on market contracts a 31.251c daily supply charge."

    • Sons of bitches! This is so dodgy..

      • No, this is "in the long term interest of the consumer". According to Energy Policy WA.

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