An Australian energy company has offered some unusual but honest advice to customers to help prevent their bills from doubling up.
One Australian energy company told customers it was in their best interest to switch to another retailer as soon as possible to get a cheaper price.
She warned that if they stay, their bills may double.
The unusual trend came from ReAmped Energy, which has about 70,000 customers across NSW, Queensland, Victoria, South Australia and the ACT.
They were emailed, and some admitted they didn’t believe it at first and thought it must have been a joke or a scam.
The bold move comes days after the Australian Energy Authority raised benchmark prices for retailers, meaning households across the country will face higher bills from July 1.
The authority attributed these increases to significant increases in wholesale electricity costs over the past year.
ReAmped Energy CEO Luke Blincoe said it’s been an “incredibly volatile time” for the energy market and that company policy has always been honest.
“Many retailers have already started withdrawing the drawbridge, so customers need to act quickly to get a better deal now before it’s too late,” he said in a statement.
There are still a few competitive deals in the market. Nobody really knows how bad it will get, so we want people to act now.”
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Mr. Blincoe also stated that the more customers the company retains, the higher prices will need to go because it “has no choice but to pass on wholesale costs”.
This was further clarified when a customer on Facebook indicated that the company is required to give at least a month’s notice of a price increase, so during that month ReAmped Energy can operate at a loss and would prefer customers to leave immediately.
The company agreed but added: “It takes heaps of price hikes to prevent us from incurring that loss when we buy electricity up front (called futures) – but the result is the same, yes.”
Blinkoe also posted a video message to customers on Facebook on Tuesday.
“With the state of the Australian electricity market, the best thing you can do is leave ReAmped Energy and find another retailer,” he said.
“The prices are going to go up and keep going up and we simply don’t want to put that kind of cost on our customers.”
In the corner of the video were the words: “Leaving ReAmped can save you hundreds of dollars.”
Another message said: “Our prices can go up by 100 percent.”
“It would be brave enough to give you that advice, but we are a purpose-driven company and we’ve set out to improve it for our customers and our planet, and right now with the way the energy market depends, we just can’t do that,” he said. “Other than giving you the best advice possible.”
Customers showered the video comments with praise and promised that they would return in the future.
“Wonderful! Not sure if this is crazy or genius, but I think it’s the latter because I can guarantee I will be back,” one person wrote.
Another said, “I am so sorry to hear this and I appreciate your honesty and authenticity.”
In response to people asking how other companies can offer them a better deal with higher wholesale prices, ReAmped Energy said major retailers may be in a better position to do so.
“It is likely that a lot of other providers will follow suit, the difference is that some of the big players may be (in) a better position because they have different operating structures that are in a better position to deal with these circumstances, as they also generate electricity that they can use to offset the prices. offered to clients,” the company replied to one client.
ReAmped Energy suggested another customer find a retailer that would offer a “favorable flat rate”.
“All retailers will raise their prices, so it’s best to shop now to find a good deal before they are all gone,” the company wrote.
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