The maximum wholesale price is around ~$19/kWh (inc. GST) throughout most of Australia, and $21/kWh in SA (inc. GST). Prices this high are generally rare, with prices ranging from $3/kWh to these peaks historically occurring a handful of times each year. However, in times where there is reduced capacity, volatility or disruptions in the market, price spikes can happen more often.
There is a higher likelihood of price spikes occurring in the early evening on very hot (or very cold) days, because this is when everyone gets home from work and runs their air conditioners (or heaters), straining the grid.
Some of the most polluting and expensive generators in Australia exist purely to capitalise on stretched supply, charging exorbitant prices to bring the grid into balance. By reducing your usage during spikes, you'll not only save on your power bills, you'll also keep more money out of the pockets of these expensive and dirty generators.
It's all part of getting to a better energy future for Australia.
What will I pay during a spike?
With Amber, you'll always pay the live price for any 30 minute interval. This also applies during spikes, so it's really important to reduce your usage as much as possible during times when the wholesale price is expensive. If you can reduce your usage during price spikes, you'll save above and beyond our typical yearly rates.
And remember: we'll make sure that over the course of a year your average per kWh price will be less than or equal to our Quarterly Bill Guarantee rate, or we'll refund the difference (read more here).
What should I do during a spike?
Most spikes only last 1 - 2 hours. The best thing you can do minimise costs during a spike is to shift energy intensive activities earlier or later during the day.
Energy intensive activities include:
- Heating and cooling (excluding fans)
- Using electric kettles
- Washing (laundry or dishes)
- Showers and baths using electric hot water
There are some things you can keep doing even when the wholesale price is spiking, because they use a lot less power than your appliances, and therefore will still be relatively cheap to run:
- Run fans to keep cool
- Continue with normal use of your lights
- Use electronic devices, such as your TV or laptop
- Continue running always on devices, such as your fridge
Why do some forecast spikes end up not happening?
The wholesale price forecast is based on a bidding war between electricity generators. Often, generators put in more competitive bids throughout the day, meaning a price spike that is forecast in the morning may end up not happening.
Even if price spikes don't happen, prices are likely to be more expensive than usual, so it's worth checking your Amber app frequently and reducing your usage as much as possible during expensive times.
Don't forget: we'll make sure that over the course of a year your average per kWh price will be less than or equal to our Quarterly Bill Guarantee rate, or we'll refund the difference.