“Smart switch:” Retailer tests time-of-use plans in bid to slash bills of hardship customers

Western Australia state-owned utility Synergy has this week launched a pilot program for 5,000 households that is designed to help customers better understand their energy habits and reduce their power bills by switching to a time-of-use plan that would shift consumption use to off-peak periods.

Designed specifically with a focus to help households experiencing financial pressures, the pilot will provide customers with an estimate of their potential electricity bill savings over a 12-month period.

Synergy says that it has already identified up to 5,000 customers for the pilot who may benefit by switching from Synergy’s default A1 flat rate plan to Midday Saver, a time-of-use plan that offers lower electricity rates from 9am to 3pm and 9pm to 9am, encouraging customers to shift energy use to off-peak times.

If customers choose to switch to the Midday Saver plan, Synergy will provide customers with further education and support of a 12-month period in order to help understand their energy use and choose the right plan.

This “smart switch” pilot has been developed as a cost-of-living measure in direct response to recommendations from the state government’s independent review into Synergy’s billing system, which concluded the need for Synergy to introduce a ‘better offer’ approach for customers.

Synergy hopes that the pilot project will help them to identify the potential savings on offer for customers who choose to switch energy plans.

“We want to help households understand their energy plans and make choices that can save money,” said Amber-Jade Sanderson, Western Australia’s minister for energy and decarbonisation.

“This initiative is a real opportunity for WA households to review their energy plans and usage and see if there are savings that can be made.

“Synergy is providing more customer education and support than ever before to help WA households better understand their energy use, their electricity plan options and their potential savings.”

Synergy bills its Midday Saver plan as offering customers the opportunity to not only reduce electricity costs but to also “help maintain stability in the grid” and “increase household consumption of renewable energy within our state”.

The plan offers three different time periods with different electricity charges for your electricity use: Super Off Peak between 9am to 3pm, Peak between 3pm to 9pm, and Off Peak between 9pm and 9am.

And the cost differences are dramatic: the cost per unit of electricity for Super Off Peak is 8.8520 cents, as compared to 55.3253 cents per unit during Peak and 24.3431 cents per unit during Off Peak.

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