Local households left frustrated over free power initiative

A NEW Victorian Government initiative promising three hours of free electricity every day has sparked frustration among local householders who have discovered they cannot simply add the benefit to their current plans.

Single householder Michelle told the Sentinel Times she had contacted her retailer Red Energy after her quarterly bill jumped by $80. While she praised the concept of the three-hour free power window Michelle was frustrated to learn that she needed to change to a specific account to receive it.

“It’s 21 hours of power I otherwise would have to pay for if I did my washing in the day,” Michelle said. “They’re (Red Energy) are not passing it on.”

When she raised the matter Michelle was told she was the third person to complain in three days. “I’m not very happy, my power bill’s gone up by 60 per cent. The energy company is taking the extra money to boost their profits,” she claimed.

From October 1 this year electricity retailers with at least 1,000 residential customers have been required to offer the Midday Power Saver standing offer to eligible households with a smart meter. The program was initially designed to provide free power between 11 am and 2 pm, allowing typical households to save between $149 and $428 a year by shifting their usage. It has been estimated that electric vehicle owners who charge during this window could save up to $1,102 annually.

A Department of Energy, Environment and Climate Action (DEECA) spokesperson said the initiative was designed to help Victorians who can shift their habits to bring down their power bills.

“Running the washing machine or dishwasher, heating or cooling the home, or charging an electric car during the free window could save households hundreds of dollars a year,” the spokesperson said.

“Residents can also use the Victorian Energy Compare website to find better deals.”

The plan was designed to utilise cheap, renewable solar energy that is currently flooding the Victorian grid during peak daylight hours by providing free primary load electricity usage for households between 11am and 2 pm, seven days a week.

Daily supply and controlled load charges still applied during the free usage period.

Red Energy is currently offering Victorian households up to 15kWh of free electricity from 11am to 4pm (with controlled load charges still applying) to work from home, run household heating or cooling, dishwasher, charge electric appliances and devices, or do a load of washing and dry the clothes.

Red Energy said the plan may not suit all households particularly if householders are looking to charge their home battery or EV as the free electricity usage is capped at 15kWh per day.

“Failure to shift usage to the free usage period could result in higher electricity costs,”  Red Energy warned. Customers with unresolved retailer complaints are advised to contact the Energy and Water Ombudsman Victoria.