Wholesale elecricity prices treble

Competition benefits: The government also was confident that full competition in the retail electricity sector, which began 1 July, would keep prices down. Homeowners and small businesses can now choose from who they buy their power. Most retailers, Wilson said, were offering discounts of up to 10 per cent on the official price. Several of the 20 companies licensed by the government to sell retail electricity in Queensland have said they won’t enter the market straight away.

First retailer fails :Energy One, has also just been suspended by the National Electricity Market Management Company. In a statement on June 22 the company said it was being quoted $101.89 per MW for a one-year base load contract. These prices compared with those prevailing earlier this year of approximately $40 to $45 per MW for base load electricity.

Marketing gimmicks: This won’t stop the big industry retailers from bombarding existing and potential customers with marketing material and offers in the days and weeks ahead. It has already been reported gimmicks such as football tickets will be on offer and some retailers were planning on doorknocking every household in the southeast up to five times in a bid to get their business.

The Courier Mail, 2/7/2007, p. 24

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