Episode Transcript
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Speaker 1 (00:00):
Earlier this week we spoke to the Chief Minister about
the electricity price reforms that are going to see Territorians
hit with a three percent to increase to their power bills.
The reforms will roll out in three stages. Phase one
that was from the first to July Territory Day. A
new tariff will apply for large commercial customers using between
(00:20):
five hundred and seven hundred and fifty megawat hours a
year NT and Commonwealth government agencies. They're going to be
moving on to full cost pricing. The solar feed in
tariff is going to double to eighteen point six six
cents per killer what hour for energy exported to the
grid between three pm and nine pm. Now then it's
(00:42):
phase two. This isn't until the first of January, but
this phase is probably the one that's had the most
people asking questions. And households will move to a tiered pricing.
The first fifty five killer what hours per day will
be charged at the normal household rate. Usage above that's
going to be charged at a higher rate equal to
the rate applied to small businesses. New time of use
(01:06):
plans are going to be available for households and small
businesses to give more choice and control over energy costs.
Then there's Phase three that's from the first of July
next year, so a bit of time to prep for that.
Daily charges for high voltage customers will move to full
cost pricing. Local government councils are also going to move
(01:26):
to cost reflective tariffs. Now there's a lot of info
to take in no doubt about that, and joining me
on the show to break down what it means for
users is Jacana Energy CEO Rod Hayes.
Speaker 2 (01:39):
Good morning to you, Rod, morning, Katie, thanks for having me.
Speaker 1 (01:41):
Yeah, good to have you on the show. Now, first off,
how much will a three percent increase equate to for
the average household The.
Speaker 3 (01:50):
Average household bill across the Northern territories about twenty three hundred,
seven hundred dollars, So percent increase you're kind of looking
at it at seventy to one hundred dollars over a year.
Speaker 1 (02:04):
Okay, so most would say that's a fairly modest increase.
Speaker 2 (02:07):
I guess yeah.
Speaker 3 (02:09):
Look, we're conscious of the difficulty that everyone's having met
in their builds, so we're conscious of any increase. And
I think not that I should speak on behalf of government.
I think government in this consideration kind of same view,
which is any increases and increase, but three percent, particularly
given the costs of the system have increased significantly more
(02:29):
than that, three percent is modest in terms of.
Speaker 1 (02:34):
You know, any concessions for seniors or our pensioners. Are
they able to get concessions at the moment. What's the
system sort of look like for them?
Speaker 3 (02:42):
Yeah, absolutely, so that there's a range of concessions, there's
details of all of those concessions. Nothing has changed under
these new tariffs and the changes to the Electacy prossing order.
Information is available on this Karna website, so that the
full range of details is there. If anyone's got any
(03:02):
questions about those, we'd love to call our contact center
to kind of walk any customer through what they're eligible for,
how they work, and how to claim them.
Speaker 1 (03:11):
Is it a situation where sometimes people might not realize
what they're actually eligible for in some ways?
Speaker 2 (03:18):
Look, absolutely. I think.
Speaker 3 (03:21):
The energy industry is complicated enough and certainly concessions. As
you said in your intro, there's lots of information, So
I think we do the very best job we can
of kind of having a pretty comprehensive set of information
for customers on the website. But if any customers kind
of thinking that maybe they're eligible or maybe they should
be eligible, please call that contact center and we can
(03:43):
walk you through it.
Speaker 1 (03:44):
Now, in terms of the power in the Northern Territory
being subsidized, talk us through how exactly that works.
Speaker 3 (03:52):
Yeah, So prices are set for residential and small business
customers by government. Underthink all the electrics pricing order which
is in your intro when you talk about the changes.
That's the mechanism government subsidizers really heavily and has for
forever residential and small business customers. Next this year twenty
(04:15):
five twenty six, that subsidy, which is called the CSO
Community Service Obligation, will be in excess of one hundred
and ninety million dollars.
Speaker 2 (04:22):
So it's about.
Speaker 3 (04:24):
A third of the cost of energy supply is subsidized
by government, and the retailers claim that back. Essentially, so
we claim back from treasury the difference between our cost
of supply and the revenue we get from those residential
small business customers.
Speaker 1 (04:40):
Okay, and I guess from a customer perspective, because there'll
be people listening, going, how does that impact me? How
does it impact customers.
Speaker 3 (04:47):
Fundamentally, it keeps the unit rate we charge down. So
your bills made up of two fundamental things. One's the
unit cost, how much we charge for killer what hour,
and then your consumption. The at rates are kept really
low comparatively across the country by that subsidy, So they're
about ranked second in terms of price. It's second lowest
(05:11):
tariff across the country. Without that, they'd be towards the top.
Speaker 2 (05:15):
I can't.
Speaker 3 (05:16):
So your price is low and then you multiply it
by usage.
Speaker 1 (05:21):
All right, now, Rod, one of the questions that we
get asked all the time is about the solar feed
in tariff. Now we understand the solar feed in tariff
is going to double to eighteen point sixty six cents
per kila. What hour the energy exported to the grid
between three pm and nine pm? Now a lot of
people questioning why this is the time frame given given
(05:43):
that the sun goes down at six pm.
Speaker 3 (05:46):
Yeah, absolutely so, first point, it's dark. Your solar panels
are not producing when it's dark. Everyone understands that. Really
this is about try our first step in really trying
to encourage one what's good for the consumer and the
owner of the solar, but balancing that with really what
(06:06):
the system needs. So at the moment, we're in this
happy position of really big solar uptake in the Northern
Territory where we're actually getting, from a system point of view,
more solar available than we can actually use. So there's
a bunch of solar middle of the day when it's
really sunny that gets spilt, doesn't go anywhere system doesn't
need it. In fact, it destabilizes the system if we
(06:28):
have a huge amount more than we can absorb. Where
it's really useful to the system for that excess to
be available is during peak consumption, which is.
Speaker 2 (06:40):
Sort of end of school hours to after.
Speaker 1 (06:43):
Dinner, when we all get home, turn the aircons on.
Speaker 3 (06:45):
Which is where you turn the air cons you turn
the telly's on, all of that stuff is going on
in everyone's household. That's the peak consumption period. So this
is a first step towards encouraging or recognizing that where
and wise we can use the solar it's useful to
the system. We're giving a signal. It's a first and sort.
Speaker 1 (07:07):
Of balancing the grid as well, making sure that it
doesn't you know, a collapse, isn't the right word, but
doesn't struggle I.
Speaker 2 (07:14):
Spose, Yeah, absolutely, so talked about lots.
Speaker 3 (07:18):
It's talked about infinitely on the Earth coast, which is
solar is variable. So the biggest issue with solar is
that you can be pushing out full power cloud comes
across and all of a sudden, it's like you staged
your car. You've lost that power output from the solar,
and the grid, if you like, has to cope with that.
So the more solar you have in the middle of
(07:40):
the day and the more percentage of your generation, the
more risk you're at of destabilizing.
Speaker 1 (07:46):
Yes, now, Rod one of the other big questions that
we've received this week, and we know that this change
isn't going to come into play until the first of January,
but the Chief Minister had spoken to us on Monday
and said that, well, she spoke about super users to
a going to be slugged the small business rate if
they exceed fifty five killer what hours per day? Do
you know how many people are likely to be impacted
(08:08):
by that change?
Speaker 3 (08:09):
Yeah, so there's about ten thousand customers who are on
a regular basis succeed that fifty five killo odd hours
and just for per day and just for context, the
average household and LAMN territory uses about twenty three killer
WHATD hours a day. Our view is that's sort of
an average larger household. So a standalone dwelling consumes around
(08:32):
thirty to thirty five kilo odd hours a day.
Speaker 2 (08:34):
So fifty five kilod hours a day is a big user, okay.
Speaker 3 (08:37):
And there's a whole bunch of reasons which are none
of our business. They're the customer's business about why their
consumption is highp. This is really about trying to send
the signal to customers. Do you do? Is there anything
you can do in your place that lowers you demand?
Because that will lower your bill.
Speaker 1 (08:55):
Look you in Humpty Doo's message through and said Katie,
what does fifty five killer words energy use.
Speaker 2 (09:00):
Look like a day?
Speaker 1 (09:02):
Is that excessive? Or is it two air conditioners running?
Speaker 2 (09:05):
No?
Speaker 3 (09:06):
So if it's a normal household, so a two by
four that's got insulation and you're running a normal air
conditioning load, we'd expect that to be thirty to thirty five.
You've got some kids, you're in and out, but you know,
a standard home, so fifty five is big. It might
be a largish rural property with some outbuildings that are
(09:29):
air conditioned, and you might have a granny flat, you
might have six beer fridges that you have outside in
the ambient temperature, working really hard. So it will be
it will be unusually large, and a lot of those
customers will be running some kind of some sort of
a business enterprise as well.
Speaker 1 (09:48):
I reckon we must have a few of them. Let's
listen to the show, because we've got a few messages
throughout the week saying, you know, I do use more
than fifty five k killer watts per day out in
the rural area. Most of rural residents. Yes, so pumping,
you know, like they've got bores and that kind of thing.
Speaker 3 (10:04):
So absolutely, and just for listeners, Yeah, the way this
will work is your first fifty five kilots same price
as every So that's the residential standard rate. It's only
the units above the fifty five killer threshold that you
will pay the PREMI on the premium about five cents
per killer what hour. So if you're a seventy killer
(10:27):
what hour user, that'll cost you about seventy five cents
a day when you're exceeding that, when you're hitting that limit.
Speaker 1 (10:36):
So it's not going to be a massive increase for
these customers.
Speaker 3 (10:40):
No, it shouldn't be a massive increase. The customers that
are consistently using that kind of level will have a
bill of around one thousand dollars a year anyway, what
this although if you kind of play it through, it
might be an extra two hundred dollars a year that
they'd see if they're consistently using say seventy killer what hour?
Speaker 1 (10:57):
Okay, Andrew and Herbert got in contact with us yesterday
and said, Katie, could you please ask why that why
Jacana or Power and Water have raised the line voltage
to cause the solar inverters to shut down makes the
feed in tariff less than worthless. It's up to two
hundred and fifty four vaults, says Andrew. Do you know
(11:21):
that one?
Speaker 2 (11:21):
I don't, Katie.
Speaker 3 (11:22):
That's very definitely system control Power and Water Corporation.
Speaker 1 (11:28):
So we can put that to Power and Water.
Speaker 2 (11:29):
Yes, yep, all right.
Speaker 1 (11:30):
Hey, we got another one that says if there are
going to be higher charges after a certain amount of usage,
then Jakanta need to get themselves sorted to have their
dashboard system working. Apparently, when you log on to your
Jacana account online. You're supposed to be able to get
an update about your usage. Families should have the ability
to be able to monitor their usage, therefore managing their
(11:52):
finances better. Do you know if that's is that something
that can be changed or fixed in some way?
Speaker 3 (11:58):
Yes, so I think your listeners referring to as is
our my account portal.
Speaker 2 (12:04):
We have had issues with it. We're conscious of those.
Speaker 3 (12:09):
One of the things that we are looking to work
on over the next period is we're just completing a
project with Power and Water Corp.
Speaker 2 (12:19):
That will give us much more granular daily meta reading data.
Speaker 3 (12:23):
Because obviously to have a good portal and provide that
information to customers, you need the what's happened today, not
what happened five months ago. So it's part of the
continuum for Jacana is really doing exactly what your listeners
talked about, which is more information at the hands of
the customer so they they can manage.
Speaker 1 (12:42):
There something that's been worked through. Yeah, okay, I think
that'll be good for people because then you can manage it.
And you know, that's the issue for a lot of us,
isn't it When you get that power bill or whatever bill,
it is whether it's power or something else. If you
haven't sort of budgeted for it, it can be difficult.
Speaker 2 (12:57):
Correct.
Speaker 3 (12:57):
So really where you want to be is where the
power is in the hands of the customers. Pardon the pun,
but they're seeing what their consumption is doing, what it's costing,
and they can make their choices.
Speaker 2 (13:12):
It's not for us to tell customers what they should
shouldn't do in their.
Speaker 3 (13:15):
Household, but our ambition is to give them good information
they can make decisions on how they want to live
their lives and how much power they want to use.
Speaker 1 (13:24):
ROD with those superusers, as the Chief Minister had referred
to them, they will you kinda contact those customers and
just let them know that, hey, you are relatively high,
you know, yeah.
Speaker 2 (13:34):
Yeah, So that the super users will fall into two categories.
Speaker 3 (13:39):
Run is essentially a regular super user that's constantly kind
of sitting up at that above the threshold. Yes, we've
got to contact and comms program where they'll all be
contacted prior to one January.
Speaker 2 (13:53):
And then we'll have the.
Speaker 3 (13:54):
What we call the occasional super user that might have
an abnormal usage period.
Speaker 1 (13:59):
Have ten members visiting.
Speaker 3 (14:00):
From the family mail turn up and everything gets a
hammering for a couple of days so that they won't
be communicated with other than.
Speaker 2 (14:11):
Through the bill.
Speaker 3 (14:12):
But again going back, that only be charged the excess
the premium on those units above the fifty five kilod
hours a day.
Speaker 1 (14:21):
Well, it's been good to speak to you this morning,
Rod Hayes. Before I let you go, just you know,
what can customers do to try and maybe reduce their
power bills If they are a little bit worried, maybe
they are sort of sitting borderline worried their prices are
going to go up. What can they do to try
and reduce those bills a little?
Speaker 2 (14:37):
I think two things. If you're a solar customer, whatever.
Speaker 3 (14:39):
You can do to shift your load to the middle
of the day when your solar panels are being out
lots of power. So if you've got a pool pump,
run your pul pump hard in the middle of the day,
don't run it at peak at night if you can
do that, If you can put a timer on it.
Manage your air conditioning. That's the biggest load in the
Northern Territory, so keeping your house at a comfortable temperature.
(15:02):
There's a bunch of things that we can all do
around that not running your air conditioner at sixteen or
seven zon degrees and learning not letting your kids have
control of the remote probably number one practical tip I reckon,
But second.
Speaker 2 (15:16):
Just have a look at that how you're using your conditioner.
The harder you make your air conditioner.
Speaker 3 (15:23):
Work, the more power you use, So really hitting it
hard coming home at night and hitting seventeen degrees and
trying to rapidly lower the temperature in your house, use
a lot of power. Slow and steady is the secret.
And all that says if you can live at twenty
four degrees inside, that's the sweet spot. That's the most
(15:43):
efficient point to run your air conditioner.
Speaker 1 (15:46):
Well, really good to speak to you this morning, Jakanta
Energy CEO Rod Hayes, thanks so much for your time.
Speaker 2 (15:52):
Thanks, thank you,