Rimfire Energy Managing Director Michael Allen says they’re offering a raft of discounts to residential customers who make the switch to the company in a bid to drive competition in the NT

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Episode Transcript

Speaker 1 (00:00):
Well, as we've heard, Northern Territory households are set to
benefit from what's been described as the biggest electricity discount
ever offered in the Northern Territory, as Rimfire Energy launches
a new residential offer that's designed to drive competition and
to try and help families to save amidst a cost
of living crunch. Now, Rimfire Energy is going to give

(00:21):
customers ten percent off their electricity bills for the first
six months, followed by two point five percent off every
bill after that, plus a sixteen point five cent solar
feed in tariff and zero transfer fee. Now, Rimfire Energy's
managing director, Michael Allen joins me on the show. Good morning, Michael,

(00:43):
Morning Caty. Good to have you on the show. Now, Michael,
this new residential offer is being called the biggest electricity
discount ever in the territory. First off, can you talk
us through exactly what customers will get and how it
all works.

Speaker 2 (00:59):
Certainly, Katy. When customers transfer over to rimfore Energy for
the first six months, we're offering a ten percent discount
off their electricity tariff. That's a pay on time discount.
We're also offering if you've got a solar system of
sixteen and a half cent solar feeding tariff, and that
tariff is nearly double the tariff otherwise on offer in

(01:20):
the market. Now once the six months introductory period is over,
will drop back to a two and a half percent discount,
and then that continues on and a solo feeding tariff
again a market leading tariff's flat point one sense.

Speaker 1 (01:34):
Michael, I know that Rimfire's obviously been in the Northern
Territory for many years, but what's driving the move into
the residential market.

Speaker 2 (01:44):
Probably the next stage of our approach of delivering savings
in the Northern Territory cading. We started a little over
ten years ago focusing on the larger commercial and industrial market.
We then, once the regulations and rules allowed, moved into
the regulated space of the small to medium enterprise market.

(02:06):
We've now got about a quarter of those markets across
I guess across the grids in the Northern Territory of Darwin, Catherine,
Tenant Creek and Alice Springs. Now we do have residential
customers already numbering in the thousands, but really need to,
I think, focus on delivering these deep discounts to the

(02:26):
residential customers in the Northern.

Speaker 1 (02:27):
Territory, Like, how have you found that sort of transition
obviously going from the you know, the larger commercial to
moving into the residential phase. And what's the take up
being I guess from locals you sort of touched on it,
but has it been quite a you know, quite a
popular sort of thing for people to come across the
rim fire.

Speaker 2 (02:49):
We certainly have gone through a process. We had to,
you know, from the start, tell people you know who
we are and what we're doing. Given that there has
been I guess not so much competition in the electricity
market to date in the Northern Territory. We're really the
first one to make this sort of penetration into the market.
I think we're the retailer apart from the encumbent to

(03:15):
have sorry, we're the first retailer to have customers in
Alice Springs, Tenant Creek and also in the Darwin Catherine area. Ye.

Speaker 1 (03:25):
And it's interesting, I suppose because in other states, like
it's quite a normal thing to have, you know, a
competitive market, isn't it.

Speaker 2 (03:34):
Oh? It is, and you know, we're very keen to
bring that competition to the to the Northern Territory. It's
it's not unusual for residential customers particularly to be I
guess comparing what's on offer with the different retailers, particularly
on the East Coast and Australia, and we're very keen
to bring those sorts of savings here, Michael.

Speaker 1 (03:54):
In terms of that solar feed in tariff the sixteen
point five cent offer that rim Fire of like, how
significant is that for households with rooftop solar and you know,
I guess comparatively to some of the changes that we've
seen in this space over the last year or so.

Speaker 2 (04:12):
Yes, well it's double what's otherwise out there or nearly double, Katie,
So quite a significant benefit where customers can earn significantly
more for every killer what our of electricity that they
export to the grid.

Speaker 1 (04:27):
Now, I know that Rimfire Group also developed one of
the territory's largest privately built solar arrays. It's the ten
megawatt facility at Bachelor. It generates enough clean power for
about eighteen hundred homes. How is that tracking and do
you think there's greater capacity for solar across the Northern Territory?

Speaker 2 (04:46):
Yes, Katie. We developed two utility scale power stations. One
was the ten megawatt solar power plant you mentioned at Bachelor.
The other was a twelve and a half megawatt gasfide
power station at wish Art. Now those those power stations
developed by room Fire and contracted directly with our retailer
will allow us to, in addition to the savings we've

(05:08):
already achieved at the retail level, in the future be
able to offer I guess, deep discounting such as we're
doing here with this ten percent offer, and hopefully more
going forward. As for more generation, Cody, we think, yes,
there is work to be done in I guess stabilizing
the grid and keeping keeping everything operating, but we think

(05:29):
there's definitely more room for private generation, and I guess
I just underscore the importance of that generation being able
to access the grid firstly, but then be able to
contract directly with our retailer so we can pass on
those savings to the customer. Yeah.

Speaker 1 (05:44):
Right, So do you reckon that the changes that the
government announced, Like, I don't know whether you've had much
of a look at it, but obviously the Northern Territory
government announcing some changes last week to the way in
which you know, things sort of work. I suppose you know,
across our essential services, and that legislation being introduced to parliament.
Do you reckon that will make much of a difference

(06:05):
and enable you know, competitors like yourself to be able
to operate in the market in the Northern Territory more effectively.

Speaker 2 (06:14):
That's a quite involved question, Katie, Let me start. Let
me start with the first part. Yes, that's a subject
very close to my own heart. I've spent a lot
of time looking at that. There are some changes that
have come in brought in by the Northern Territory government
to date that we believe are really good. As an example,

(06:35):
there's the MSATS enabling project, which allows us to change
customers over in a matter of days as opposed to
what usually took around a month or more, and that
allows us to have this sort of I guess deep
discounting offer to residential customers in the territory. There are
other changes I think we're looking at, I guess an

(06:57):
independent market operator, which we think is a very important
thing and a very good change we do have. I
guess there are I guess some other changes being considered
that we would think perhaps we need to look at
carefully to make sure that they do deliver the lower
prices and a stable efficient grid for the Northern territory well.

Speaker 1 (07:20):
Rim Fire Energies Managing Director Michael Allen really good to
catch up with you this morning. I really appreciate your time.

Speaker 2 (07:27):
Thanks Katie great, Thank you you

Speaker 1 (07:29):
Too, Thanks so much,