Powerclub energy

Given how essential electricity is to the average Aussie household, it’s no surprise that many energy providers are trying new strategies in a bid for customers. Newer providers apply for licences with the Australian Energy Regulator (AER) and different state or territory governments every year. 

However, catching the customer’s eye requires energy providers to have a differentiated offering, compared to other suppliers. In this respect, Powerclub says it’s the only member-owned energy provider, offering customers who sign up for membership wholesale electricity rates and participation in the company. Its energy plans are also differently priced and involve a membership fee. 

Powerclub operates on the premise that everyone buying electricity from it should have access to wholesale electricity rates. Usually, the wholesale electricity price makes up about a third of the electricity rates offered by energy providers in Australia. Distribution network charges, cost of environmental schemes, and retailers’ margins make up the rest of the electricity price. Also, most energy retailers set their electricity tariffs as part of market retail contracts while also offering standing contracts to comply with either the AER’s Default Market Offer (DMO) or the Victorian government’s Victorian Default Offer (VDO).

When you buy electricity from Powerclub, you have to pay a fixed supply charge, which accounts for network costs. However, instead of setting their rates, PowerClub offers customers the wholesale electricity rate currently available for their postcode. Further, PowerClub charges an annual membership fee - currently $39 for residential customers and $79 for small businesses. 

The energy provider, which doesn’t earn profits, says it uses the member fees to further innovation. At present, some of the initiatives available to Powerclub members include:

• Powerwatch: The company’s mobile app, through which members can track the variation in wholesale electricity prices and monitor their electricity usage.
• Powerbank: A refundable deposit paid by Powerclub members that helps equal out customers’ bills by flattening the changes in wholesale electricity price. At present, the minimum deposit is $100. Customers need to add $40 for every 1,000 kWh of electricity used annually, up to a maximum of $120. This deposit ensures that Powerclub members are charged an electricity rate approximately equal to the average wholesale electricity price. If you cancel your Powerclub membership and switch to another energy provider, you will be refunded the balance amount in your Powerbank.

Customers should consider these upfront costs - membership fee and Powerbank deposit - along with the supply charge and electricity prices when comparing Powerclub reviews with those of other energy suppliers. 

You should also keep in mind that energy providers offer various electricity tariffs that can help customers control electricity bills. Powerclub energy plans come with the two tariffs described below.

• Powerbank Flat Plan: Customers pay a flat rate for the electricity they use, irrespective of when they use it. This rate corresponds to the peak rate charged by the network.
• Powerbank Flex Plan: Customers in some network areas can opt for time-of-use tariffs, split into peak rates, shoulder rates, and off-peak rates. If they can focus their electricity use during shoulder or off-peak periods, they can benefit from lower usage charges levied during these times.

You can check your Powerclub electricity bill to find out about the tariffs available in your postcode. You can also see if you can sign up for a controlled-load tariff, applicable for specific appliances with separate meters. Once you choose an energy plan, Powerclub can help you monitor your usage and see if switching to a different plan allows you to lower your household energy costs. However, once you switch your plan you can’t switch back to the original plan.

Before you sign up for a Powerclub energy plan, you should review the costs and tariffs you’re liable for and find out how much you can control these. For instance, you’ll have to become a Powerclub member to access wholesale electricity rates. You also have to make a Powerbank deposit to ensure you don’t receive bills with significant spikes corresponding to variations in the wholesale electricity price in your area. While the membership fee is an annual cost, you may need to make additional Powerbank deposits depending on your household energy consumption.

In terms of saving on electricity bills, the company suggests customers use its Powerwatch app and set up alerts for times when the wholesale price is significantly higher so that they can minimise their electricity usage during these periods. However, unlike other energy retailers, Powerclub doesn’t offer any discounts or loyalty rewards. If you are eligible for any concessions or rebates offered by your state or territory government, you should share the details with PowerClub so that they can apply the credits to your energy bill. 

Like other energy retailers, Powerclub also sources electricity from a mix of renewable energy and fossil fuel-powered generation plants. However, the energy provider doesn’t offer customers the option of exclusively choosing “green power” or electricity from renewable sources. Instead, Powerclub customers are advised to use the Power Clock feature to align their electricity usage to times of the day when more renewable energy may be available. For instance, between 9:30 AM and 4:30 PM, more solar power can be generated. 

If you’re an environmentally conscious consumer, you may want to check if you can concentrate your household’s electricity use during off-peak, low demand periods. That way you could use more electricity generated from renewable sources and also save on your electricity bill. However, this may be easy if you are working from home and not if you have to commute to work. Also, you’ll need to keep an eye on the PowerWatch app for spikes in electricity prices. Typically, you may be able to save more - and use more electricity from renewable sources - by using electricity during the middle part of the day.

For customers who’ve installed solar photovoltaic panels and are willing to sell the excess electricity, Powerclub offers a solar feed-in tariff as well. Powerclub offers a feed-in tariff after determining whether the wholesale market price is higher than the minimum feed-in tariff mandated by the customer’s state or territory. The customer gets the higher rate but may also get an annual solar bonus if the total market value of the solar power sold by them through the year is higher than what they received through their feed-in tariff. They can also earn more by monitoring the solar feed-in tariff offered at a particular time using the PowerWatch app.

While the company doesn’t offer solar installation support, it encourages customers to take advantage of federal and state government rebates for switching to solar power. These rebates can offset the cost of buying and installing either solar photovoltaic panels, solar batteries, or the entire setup. Note that, unlike other states, customers in Queensland are offered interest-free loans of as much as $4,500 for home solar systems.

Powerclub members can cancel their contract at any time, as the company does not charge any exit fees. However, it’s important to tell the company in advance to get the final bill and Powerbank balance refunded. As the Powerbank balance is not utilised towards the bill amount, customers will have to make separate arrangements to pay their bills. 

The Powerclub Membership fee paid annually by customers is not refundable. If you are moving your Powerclub connection from one address to another, you may be charged disconnection and reconnection fees.