Total electricity usage in NSW increased by 7.5 per cent1 in January compared to the same period last year, driven largely by householders efforts to combat the extreme heatwave.
Mojo estimates that electricity usage for those using air conditioning will soar by more than 7.5 per cent which will lead to a bill shock for many. And that extra is going straight into the coffers of the major electricity providers who all profit from households increased usage.
“I’ve got a simple message for those households who use air conditioning or electric fans and are signed up to any of the big three, dump them now and join the only retailer aligned to help them save, particularly as these extreme weather conditions will only become more frequent.
“Mojo is the only electricity retailer that does not profit from our customers’ increased electricity usage. Our customers pay a flat monthly fee called an EnergyPassTM, to allow them to access wholesale rates for their household electricity at 30% less2 than the major retailers standing rates charged to most of their customers,” Mr James Myatt, Mojo’s CEO said.
The Mojo model is of most benefit to those who are above average consumers of electricity, typically those with air conditioning or swimming pools.
“These are precisely the customers that the major retailers can least afford to help make savings, because it is their electricity consumption that drives their profit model,” Mr Myatt.
Independent research3 commissioned by Mojo found more than half of those surveyed already believe that they’re being unfairly charged for their electricity.
“One reason many don’t change their retailer is because they think it is too hard; with 55% of people surveyed saying switching electricity retailer is a complicated process. The reality is it couldn’t be easier with Mojo, people can go online and sign up in under three minutes and we’ll do the rest for them,” Mr Myatt said.
Mojo customers who opt for a smart meter will also able to see their monthly bill forecast in real time, which will help them budget for and avoid unexpected bill shocks.
Energy Saving Tips from Mojo
Throw some snags on the BBQ for dinner. Not using your stove or oven will save you!
Mojo has brought a whole new level of competition to electricity retailing. Independent analysis by the Australian Consumer, Retailer and Services (ACRS) unit at Monash Business School, NSW families who use more than the average amount of electricity per year would see significant ongoing yearly savings with Mojo, when compared to the three major retailers’ standing tariffs.
Although these retailers do offer discounts, the evidence is that most customers have either never moved off the standing tariff or their discounts have expired. Mojo points to Origin Energy’s FY 2015 results presentation where the company disclosed that the impact of discounts as a percentage of retail revenue was only 4%. The company believes the picture is similar for the other two major retailers.
To access wholesale prices, customers simply need to visit mojopower.com.au and select the EnergyPassTM option that best suits their needs. Mojo will arrange the transfer of their account from their existing retailer. EnergyPassesTM start at $35 per month, or an effective $23.33 per month, if a customer pays annually up-front.