28 June 2018
Sometimes wholesale pricing can feel a bit like riding a roller-coaster. It’s a whole lot of fun while the prices are plummeting and you can see your power bill dropping. But when those prices start to sneak upwards it can be a little daunting.
Step one on how to deal with a price spike – do not panic.
Let’s put things into perspective. Price spikes generally tend to happen in the middle of winter, there are the occasional surprise spikes in other seasons due to generator breakdowns or perhaps a big sporting event, but these are few and far between. As the harsh winter period tends to only last for two months of the year, you still receive the benefit of low power prices for the other ten months.
Step two on how to deal with a price spike – remember all those savings you’ve already made.
When a price spike does occur it tends to only last for one or two 30 minute periods. This means that the actual impact of your power usage during these times may not be as dramatic as it would first appear.
Say we take your heat pump, on average these use 0.5 units of power per half hour – during a massive 100c price spike this would cost you $0.50 per half hour.
Your oven is slightly more expenses at roughly 1 unit of power per half hour, but even if you are caught with the oven on this may only affect your power bill by $1.00 for that spike.
You can check out our mobile app (powerdirectnz – available on android or iphone) for current power prices on a variety of everyday appliances.
It is always worth ensuring that you aren’t using unnecessary electricity (and this applies even when the prices are low). Remember to switch off lights when you leave the room and turn off unused appliances at the wall – this is also a great safety tip for power surges.
Step three on how to deal with a price spike – switch off unused or unnecessary appliances.
Another important thing is to not let your electricity use go to waste by allowing the heat escape from your house. This means closing the curtains as soon as the sun has gone down and implementing some good old door sausages to stop heat from sneaking out.
We do understand that in the middle of winter it’s hard to see those higher prices and not start to wonder if you would be better off on a fixed price plan – we’re Power Direct customers too! But we also know that in the long run we are better off on a wholesale (spot price) plan.
If you’d like to know more about how spot pricing works and what can cause spikes check out our blog: Spot PriceBack to News