It can be hard to know when to look for or enter a new energy contract. Afterall, prices are always changing and choosing the wrong time could mean missing out on a better price in the future. Or worse, waiting now could mean paying a higher price in the future.
How much does timing really matter? In the last two years, Victorian prices for the financial year 2020 have seen a 40% difference between the top and the bottom of the market. Mistiming a contract in Victoria would have meant paying an additional 4c/kWh on your bill!
This is one of the reasons why we came up with the Active Option.
Thinking of contracting short term because the market is so high? Think again.
The Active Option, a feature of our Power Active plan, is unique to Flow Power. It takes the guesswork out of knowing when to buy energy and gives a competitive advantage to businesses that enter contracts when prices are high, by letting you lock in a lower price if the market rates later drop.
That means, regardless of when you contract, you won’t miss out on a better price in the future if the market changes.
A small access-fee of approximately 0.4 to 0.8c/kWh is charged to your rate in the year the Active Option is applied to. It’s a small price that can deliver big savings if the market changes in the future.
How does it work, really?
Put simply, the Active Option lets you move to a lower contract rate if market rates fall. More importantly, it gives you greater flexibility and insight into the prices you pay.
The Active Option lets you follow the market as it goes down. To do this, we keep an eye on the ASX Energy futures and if the rates for your contract period fall, we’ll automatically move you to the lower rate.
But if market rates increase, you’ll simply pay the rates that you set at the beginning of your contract.
Take a look at how one of our customers saved with Power Active here.
When does the Active Option come into play?
Generally, the Active Option applies to the beginning of the second and third year of your contract, if you’re on a three-year Power Active plan. This can be either financial or calendar year, depending on when your contract begins.
If you’re on a two-and-a-half year plan, it will apply to the beginning of each year in your agreement.
Why do we do this?
In short, we only apply the Active Option to the periods where the benefit is greatest. If it is applied from the beginning of the plan, close to when the contract is due to begin, the benefit is minimal.
The Active Option is one of the key levers that customers on Power Active can pull to improve their energy prices for the duration of the plan. But the greatest benefit comes to businesses that sign onto Power Active, with the Active Option, on a rolling basis.
This is because the Active Option can be applied well in advance, allowing businesses to secure the best-possible prices at the time and potentially, an even better prices in the future.
Take the stress out of timing the market and contract long term with the Active Option, we’ll take care of the rest.