Every commercial and industrial business is unique, and we’ve got flexible options to suit. There are plenty of great reasons to choose us as your electricity supplier.
FPVV pricing offers your business fixed energy rates for your half-hour electricity use.
By locking in your rates, you’re protected from the volatility of the electricity spot market, helping you manage your energy costs with greater confidence and predictability.
FPVV pricing suits customers who want pricing certainty.
No minimums, no maximums, just straightforward pricing. You use the electricity you need, and we charge the agreed rate based on when it’s used. Simple as that.
FPVV pricing applies to the energy portion of your invoice only. This includes the cost of the electricity you use and the business/retail services we provide.
Other charges, such as those from the network, metering costs, local losses, GST, and the Electricity Authority Levy, are set separately and may vary from time to time.
With proportional pricing, you can choose a percentage of your energy usage to be charged at a fixed rate, while the remainder is billed at the spot market rate, plus an administration charge.
This flexible approach allows you to manage your exposure to market fluctuations while still enjoying a degree of price certainty.
It best suits customers who are interested in having a proportion of their electricity supply exposed to spot market fluctuations, while mitigating risk by having a set percentage of their energy provided at fixed rates.
Proportional pricing is a fixed price, fixed percentage product. You set the percentage of future electricity use to be charged at fixed rates, with the remainder billed at spot market rates plus an administration fee.
There are no minimum or maximum volume requirements - you only pay for what you actually use.
When spot prices rise, you’ll pay more for the variable portion of your usage; when they fall, you’ll pay less. The fixed and variable proportions stay constant for the duration of your contract.
Proportional pricing applies to the energy portion of your invoice only. This includes the cost of the electricity you use and the business/retail services we provide.
Other charges, such as those from the network, metering costs, local losses, GST, and the Electricity Authority Levy, are set separately and may vary from time to time.
Spot market pricing links your business’s electricity pricing directly to the wholesale electricity market (spot market), plus an administration charge.
This is ideal if you actively monitor your energy usage and stay informed about market trends, allowing you to take advantage of lower prices when market conditions are favourable.
Best suited to businesses that actively monitor and manage their energy use and are willing to respond to price signals. It can offer potential savings compared to fixed pricing, especially during periods where spot market pricing is low.
However, spot prices can be volatile. Sudden spikes, due to events like droughts or high demand, can significantly increase costs.
Active monitoring and management of your energy usage is essential to make the most of this pricing model.
The wholesale Spot Market works as an auction where generators make offers to produce electricity for half-hour time blocks (called trading periods).
The system operator (Transpower) ranks these offers and computes the lowest cost mix of generation from different sources that will satisfy overall demand for each half-hour.
The highest-priced generator actually required for each half-hour is the key determinant of prices for a trading period (referred to as marginal pricing).
Spot prices vary for a number of reasons including:
Spot prices can, on occasion, be many times higher than the offer price for the highest cost generator that was required to run in a trading period. This can arise for a variety of reasons, but generally reflects a situation where part or all of the supply system is getting close to its physical limit.
* This information has been reprised from Electricity Price Management – a high level guide for consumers published by the Electricity Authority.
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