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- Over 1 Million Residential, Business and Industry Customers
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THINKING ABOUT SYNERGY?
Why Synergy?
Synergy is the largest electricity supplier in Western Australia. In addition to having significant power generation capacity, they also retail gas to business customers. So far they have serviced over a million people in Western Australia.
Synergy is a state-owned enterprise, meaning that the Western Australian government and the Western Australian taxpayer, are its owners. This also makes the company 100% Australian owned and operated.
Supply Area
Synergy operates along Western Australia’s South-West Interconnected System (SWIS). This network extends from Kalbarri in the north, to Kalgoorlie in the east, and down south in Albany. When you add in Perth, you’ll find Synergy retails electricity to over 50% of Western Australians.
Whether you’re a homeowner or a small business owner, you have to use Synergy for an electricity connection. They also service large industrial customers as well.
Synergy’s Dominance
Synergy currently supplies customers in WA who are in the SWIS (South West Interconnected System). The SWIS represents the zone in WA with the most population. Synergy has been granted a monopoly on selling electricity to residential and other small-scale business customers who do not consume a lot of power. The company also sells gas to large-scale customers such as industries. Large scale businesses that use over 50,000 kWh a year in power, however, can choose another electricity retailer if they want to. Small-scale users in the SWIS region, however, are termed “non-contestable customers” and can only get their power from Synergy.
The company’s government-backed monopoly may possibly end in the future, however, as the call for full competition grows louder. Opening up the SWIS region for more competition was a fundamental reform put forward by a 2016 review of the wholesale electricity market by the Economic Regulation Authority. It has been maintained that more competition will bring prices down and help customers in WA. The benefits of state-owned power generation cannot be understated in any manner. Regulation of gas prices in WA has made gas affordable and available for gas customers in remote regional locations. To do this, WA state governments have had a subsidy in place for a few years. It remains to be seen if private competition will be able to maintain the gains for those customers in regional WA in remote, hard to access quarters of the state.
As of now, however, the monopoly Synergy and other WA government-run companies have remains, as the state government seemingly drags its feet on plans for full retail competition. Energy minister Ben Wyatt justified the decision by claiming that it is still up in the air if the retail competition has delivered benefits for customers in the east coast of Australia.
SYNERGY MARKET OFFERS
Synergy offers some different plans for your home or business as well as a Renewable Energy Buyback Scheme. They also have an extensive solar programme if you’re looking to save a little bit extra on your power bill. Synergy is also running a trial of a very modern Electric Vehicle plan for homes that gives you an incentive for the first year you join. *
* All offers are valid as of April 15, 2019.
WA Residential Electricity
Home Plan
- Flat rates that remain fixed
- No fixed contract
- No exit fees
Smart Home Plan
- Variable rates based on time-of-use
- No fixed contract
- No exit fees
Smart Home Plan
- Combined bill for your home and business
- No fixed contract
- No exit fees
Mainly, for residential properties, Synergy offers three kinds of products – Home Plan, Home Business Plan and the Smart Home Plan, each different based on the way you use electricity.
Home Plan
The Home Plan is Synergy’s flat or single rate tariff with only one kind of usage charge for using power. Prices remain the same through all times of the day, giving you the peace of mind to use your electricity as you please. Residents in WA will be pleased to know that they won’t be tied down to any lock-in contract and that there are no exit fees charged for moving away from the plan. Also, if you add an additional home of yours to your same Synergy account, you could enjoy lower daily supply rates.
| Plan Name : | Home Plan |
| Usage Rate : | 28.3272 c/kWh |
| Supply Charge : |
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Smart Home Plan
The Smart Home Plan is a time-of-use tariff which applies a different rate for electricity usage for different times of the day. Peak usage rates are typically charged when demand for electricity is high, which is why peak rates are often much higher than off-peak usage rates. The major draw for homes in WA, however, will be the low off-peak charges which they can take advantage of to run the energy-intensive appliances at home. Peak hours during weekdays run between 3 pm to 9 pm while the off peak hours run between 9 pm to 7 am. The hours in between these two, from 7 am to 3 pm, are termed as “shoulder” times and charged a different rate. Shoulder times run from 7 am to 9 pm on weekends. The only thing to consider is that the plan requires your property having a smart meter. If you have the old-fashioned meters, you will have to upgrade your existing meter. There is no fixed term to this contract, meaning you are free from any costly exit fees!
| Plan Name : | Smart Home Plan |
| Usage Rate : |
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| Supply Charge : | 101.5493 c/day |
Home Business Plan
The Home Business Plan makes use of a block rate tariff system. On a block tariff system, customers receive a charge on their electricity usage in ‘blocks’. The electricity usage rate changes based on the amount of electricity you use. Prices can increase or decrease as you move across each block of usage. Synergy says the plan is designed for home businesses where electricity is made use of for working as well as living. Synergy continues to showcase the flexibility of their plans by not fixing a term for the contracts.
| Plan Name : | Home Business Plan |
| Usage Rate : |
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| Supply Charge : | 171.5406 c/day |
WA Small Business Electricity
Business Plan
- Government-regulated tariff
- Stepped rates
- For low/medium voltage businesses
Business TOU Plan
- Off-peak rates apply
- Time of Use Meter required
- No fixed term
Home Business Plan
- Combination of residential and business usage rates
- No fixed term
- For low/medium voltage businesses
Small businesses in WA enjoy three different power plans from Synergy that is based on government-regulated tariffs – Business Plan, Business Time of Use and the Home Business Plan. In order to be eligible for these plans, businesses must spend less than $14,000 a year on power.
Business Plan
| Plan Name : | Business Plan |
| Usage Rate : |
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| Supply Charge : | 171.5406 c/day |
Business Time of Use
The Business Time of Use plan has a 2-year fixed term which allows your business to use time-of-use rates, which can be cost-effective depending on the usage pattern of your business. The major draw for customers in the regulated WA electricity market is that off-peak rates apply after 10 pm, which can help businesses that usually operate large machinery during those times. Also, if your business requires the setting up of a compatible time of use interval meter, Synergy can set it up for you for an extra cost. In order to be eligible for these plans, businesses must use less than 50,000 kWh of electricity per annum (less than 137 kWh a day) or spend less than $13,500 on power every year. Peak hours during weekdays run between 8 am to 10 pm while the off peak hours run between 10 pm to 8 am.
| Plan Name : | Business Time of Use |
| Usage Rate : |
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| Supply Charge : | 330.90 c/day |
Home Business Plan
| Plan Name : | Home Business Plan |
| Usage Rate : |
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| Supply Charge : | 171.5406 c/day |
For each of their plans Synergy also provides access to a business support team to handle all grievances of their business customers effectively.
WA Large Business Electricity
Business Saver Plan
- 5% discount off usage charges
- 24-month contract
- Interval meter included
Business Flexi Plan
- Lower rates than the government-set prices
- 24-month contract
- Interval meter included
Business Fixed Plan
- Usage rates that remain fixed
- 24-month contract
- Interval meter included
Large businesses in WA are termed “contestable customers” if they use above 50,000 kWh of electricity every year. Contestable customers can choose their own electricity retailer and need not be tied down to Synergy. Synergy provides large businesses with three distinct power plans – Business Saver, Business Flexi and Business Fixed. In order to be eligible for these plans, businesses must spend at least $14,000 a year on electricity.
Business Saver Plan
The Business Saver plan is Synergy’s attempt at putting the power of choice back in the hands of WA business owners. Under the 2-year plan, you can choose whether you want to choose to have flat rates for your usage at any time of the day (L3 tariff) or whether you want to adopt time-of-use rates (R3 tariff) that charge differently for different times of the day. You also enjoy a 5% discount off your electricity usage charges when you choose to switch to e-billing and agree to set up a direct debit option to pay your bill. As an extra sweetener, Synergy includes the setting up of an Interval meter at your premises. Peak hours during weekdays run between 8 am to 10 pm while the off peak hours run between 10 pm to 8 am on weekdays. In order to be eligible for these plans, businesses must use at least 50,000 kWh of electricity per annum (about 137 kWh a day).
| Plan Name : | Business Saver |
| Usage Rate : |
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| Supply Charge : |
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Business Flexi Plan
The Business Flexi plan has a 2-year fixed term which allows you to choose from flat rates or time-of-use rates, depending on the usage pattern of your business. The major draw for customers in the regulated WA electricity market is that prices in this plan are lower than the government-set prices in the zone. Also, if your business requires the setting up of an interval meter, Synergy will do that for you free of charge! Peak hours during weekdays run between 8 am to 10 pm while the off peak hours run between 10 pm to 8 am on weekdays. In order to be eligible for these plans, businesses must use over 50,000 kWh of electricity per annum (over 137 kWh a day).
| Plan Name : | Business Flexi |
| Usage Rate : |
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| Supply Charge : |
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Home Business Plan
The Business Fixed plan allows you to take control of your energy costs and lock in a fixed rate for at least two years. The plan allows you to choose between a flat tariff structure or a time-of-use payment structure. Prices remain the same all throughout the duration of your contract, allowing you to focus on the running of your business without any worries. This plan includes the setting up of an Interval meter at no cost, which Synergy say will save your business over $800! In order to be eligible for these plans, businesses must use over 50,000 kWh of electricity per annum (over 137 kWh a day).
For each of their plans, Synergy also extends a dedicated business support team to deal with any queries of business owners. Beyond these plans, Synergy also has plans that are suited for large businesses that would like low voltage or high voltage electricity supplied to their premises.
WA Business Gas
MW/SW Non-residential Gas
- No fixed term
- For businesses that spend over $6,400 on gas per annum
Business Gas Flexi Plan
- Rates that are up to 25% lesser than government-set prices
- For businesses that spend at least $6,400 on gas per annum
Gas Sales Agreement
- Variable rates based on negotiation
- For businesses that spend at least $40,000 on gas per annum
Synergy extends three gas plans for businesses in WA – Mid-west/South-west Non-residential Gas Supply, Business Gas Flexi and Gas Sales Agreement.
Mid-west/South-west Non-residential Gas Supply plan
The Mid-west/South-west Non-residential Gas Supply plan is for medium to large-sized businesses that use between 180GJ and 1TJ of gas each year. Your business can also choose to adopt flat rates or stepped rates based on government-regulated tariffs. Also, the plan does not need you setting up any special meter, nor is there a fixed term for the contract.
| Plan Name : | MW/SW Non-residential |
| Usage Rate : |
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| Supply Charge : | 17.89 c/day |
Business Gas Flexi plan
The Business Gas Flexi plan showcases rates for usage that is up to 25% lower than the government-set tariffs for gas in the state. For your business, you can also choose to pay flat rates for usage that do not change or can adopt a ‘stepped rate’ structure where gas usage is charged in blocks with gas usage rates depending on the volume of gas used at your business. In order to be eligible for this plan, businesses must use at least 0.5 GJ of gas every day or spend at least $6,400 on gas per annum. The plan gives business owners direct access to a dedicated team for providing service support to businesses.
Home Business Plan
The Gas Sales Agreement plan allows you to customise a gas plan according to the needs and gas usage patterns of your business in WA. By negotiating a better deal directly with Synergy, you can take control of the gas costs of your business. In order to be eligible for this plan, businesses must use at least 1 TJ of gas every year or spend at least $40,000 on gas per annum. The plan also gives customers access to an account management team that will provide the necessary support to business owners.
For each of their plans Synergy also provides access to a business support team to handle all grievances of their business customers effectively.
About
Synergy was born of the West Australian energy reforms in 2006. Initially, West Australian energy was wholly controlled by the State Energy Commission, which later split into Alinta and the Western Power Corporation. The 2006 reforms divided the Western Power Corporation into four new companies, two of which were Verve Energy (a generator) and Synergy (a retailer).
Eight years later, Synergy and Verve merged into one company, also called Synergy. Synergy today has the capabilities to both generate and sell retail electricity in Western Australia. In 2015, a new round of government reviews saw Synergy given the green light to also retail gas to Western Australians, solidifying their stable position in the market.
My Account
With Synergy’s online space named ‘My Account’, customers can now access a range of services from the comfort of their homes. These services include:
- Making and managing bill payments
- Setting up a direct debit payment option
- Pay smaller amounts to avoid bill shock
- Apply for an extension to pay bills
- Arrange for your connection to be transferred
- Keep tabs on your account balance
- Monitor your power usage
Generation
Synergy's generation capacity is ever growing. They have power stations dotted all around the state, but the major ones are:
- Collie Power Station
- Kwinana Power Station
- Cockburn Power Station
- Pinjar Power Station
They’re also dipping their toes in the renewables field. They own and operate multiple wind farms located in Albany, Coral Bay, Esperance, Hopetown and elsewhere. Synergy recently bankrolled the setting up of a community solar project that makes use of the solar battery technology for home developed by U.S.-based Tesla Inc. The project envisions pooling the solar energy produced by the panels of over 50 homes into a battery bank. In evenings, when the sun goes down, and peak demand for electricity arises as people return home from work, houses can draw upon the battery bank to power their homes. Thus, they do not have to depend on the grid during those times of the day where peak demand also sends prices for electricity higher. As a solar home battery remains an expensive item of spending for most homes in WA, the main benefit of such a community project is that homes experience the benefits of battery storage while not having to spend too much of their money in setting up. Homeowners can instead make payments in instalments, by merely paying a dollar a day for two years.
Adapting to Solar
As the go-to provider for over a million WA customers, Synergy has long experienced strong revenue growth and profit numbers. The situation arose as there were no solid alternatives to the company in WA for most residential customers and small and medium enterprises. All of that changed in 2018 when the company reported a near 6% fall in electricity sales for the year. As a result, for the first time in 5 years, the company’s total revenue fell below the $3 billion mark. The interesting thing was that Synergy generated 10% less electricity in 2018 compared to the same period a year ago.
So why were Synergy sales falling and why did their total generation fall? There appear to be two reasons. Partly it’s due to a taxpayer-funded subsidy slowly getting eroded, which gradually ate away at Synergy’s bottom line. The primary factor, however, is the accelerated uptake in rooftop solar panels across Western Australia. As the subsidies died down, the price of electricity in WA skyrocketed, leading WA homeowners to start seriously considering solar panels. With more homes in WA turning to the panels on their rooftop to give them the electricity they require, they depend less on power from the grid. Thus, the revenue for Synergy has slowly been disrupted by the massive uptake of solar energy in homes across WA.
On top of that, a relatively new gas-fired plant owned by Synergy has had to shut down for extended periods over the past year. According to company executives, the gas plant has been unable to keep up with transitions in supply, as solar energy from WA homes floods the power grid. With over a quarter of households in WA adopting rooftop solar, and more panels coming online, the rise of solar looks unstoppable.
Synergy Chair Robert Cole has said that rooftop solar is now supplying “7% of total SWIS region demand”. Previous state governments in WA have limited large-scale renewable projects, however, the coming years promise increased renewable generation. Moreover, as electricity prices keep rising, it is expected that more homes in WA will turn to solar panels to ease the pressure on their wallet. As a result of these developments in the WA energy scene, Synergy has been ramping up efforts to transform their business.
The first step in the direction toward solar energy by Synergy is through its new solar and battery installation arm named SolarReturn. The company claims to have completed the installation of over 1000 solar systems in WA homes as of 2018, since beginning operation in 2016.
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