A quick guide from Ray White Home Now
Playing our part in the energy crises for your clients: our quick guide to help us appreciate a little more about what clients are going through
We all know that the interest rate trend is raising many questions and playing a significant role with people’s future property decisions. Unfortunately our rising power and petrol prices are adding another concerning dimension to their mindset.
This guide is to help you understand a little more about what is causing our energy volatility and how the Ray White Home Now’s “Power of Choice” strategy has been amplified to new heights in servicing your clients.
Firstly, the good news
Ray White Home Now will continue to strive to connect your clients to an energy retailer, unlike some of its competitors who have ground to a halt in turning the lights on for their real estate partners.
This is why we strongly urge our network members to be extra careful when approached by connection service companies who have limited or no choice of energy partners. They are highly exposed to these unprecedented conditions which will affect your commissions and your customers seeking a competitive price, let alone just getting their power connected.
Our philosophy is and always will be “your customers and your business comes first”.
This is why we felt a responsibility to provide some market condition background that is affecting all of us.
How much are energy prices expected to rise and why?
- Indications are that the regulator's guide to retailer pricing (may lift as high as 18 per cent) but this will vary by state
- It's important to note that there are also indirect impacts on general cost of living expenses e.g food and groceries
What’s causing this?
- Just like in real estate when there is stronger demand than supply, prices rise
- The industry’s wholesale market prices experienced five fold increases
- The wholesale price of energy is where retailers hedge and/or spot buy their energy before on selling to customers
- At one stage last year it was trading at $60 per Megawatt vs recently $314 - $590
- War in Ukraine. Russia, one of the world’s largest energy exporters is now impacted by sanctions, reducing further supply
- Reduced investment in our aging coal plants as we shift more to renewables to supplement supply
- The recent floods have also had an impact on generators
- Our winter season has driven up even more demand
- The energy regulator (AEMO) has stepped in to suspend and cap energy trading
What does this mean for Ray White Home Now or our Connection Service provider?
The challenge faced for companies like ours comes down to the number and type of energy retailers on the panel. For example one competitor to Home Now only had three retailers on their panel. Two of them suspended receiving customers and the third, like many retailers, capped the level of new customers they were willing to accept. Our initial panel size has allowed us to continue to provide choice for customers when our competitors could not.
What does this mean for Home Now and your customers?
- Our retailer panel has been temporarily reduced from 18 and has been ranging from three to seven but this changes on a daily basis
- Some of our retailer offers are only available in the call center so we do have more options both online and offline
- Many retailers have lifted their prices to the regulators guide however we continue to provide our comparison service to support your clients to shop for better deals
- Some retailers are temporarily capping their capacity for new clients but we have been able to manage this by dynamically overflowing across our retailer panel ensuring all clients can continue to shop online or offline and connect the power for their home
- Many retailers will have a better position come 1 July 2022, with the announcement of the regulators new default offer guide
What's coming next for Ray White Home Now?
We expect this energy crisis to settle which will then pave the way for some exciting new products and services coming your way.
Auto Bill Comparator
We’re in the testing phases where your clients can upload their actual bill for a real time comparison and then connect to a new retailer in minutes.
Realtime Solar Estimator
We’re also exploring a new way for your clients to price and source renewable energy with a tool that actually reviews their roof space to calculate the solar capacity and cost. The client then uploads their energy bill and the system presents back the savings from these solar in dollars and emissions as well as a payback period for the solar system. This is our way of playing a greater role in supporting our renewable energy ambitions.
