Friday 9th September 2016

PSO Levy Announcement 

From October 1st, every electricity customer in Ireland will pay more because the Public Service Obligation Levy is increasing. The PSO Levy is a government subsidy that is charged to all electricity customers. The levy will go from €68.20 to €80.30 per year including VAT.

 

Thursday 01 September 2016

PrePayPower Announces Price Change

 

PrePayPower, the largest pay as you go electricity provider in Ireland, has announced a reduction in its Standard Unit Rate of electricity to 17.03 cents (including VAT) per kWh, ensuring that it remains the cheapest Standard Unit Rate in Ireland*.  

This is the fourth time PrePayPower has reduced prices in the last 19 months and brings the total reduction in Standard Unit Rate over this period to 11.8%; the largest reduction by any supplier in the market. The company is passing on the benefits of wholesale energy cost decreases to all its customers.

This reduction will be partly offset by a 1.4% (€2.18 (inc. VAT) per annum) increase in its standing charge, which is a result of passing on regulated charges imposed on the company.

Cathal Fay, CEO of PrePayPower said, "We're happy to provide the lowest Standard Unit Rate in the market. However, the key attraction for our customers continues to be the control our service gives them over their electricity costs. Our customers consistently see a reduction in usage when they switch to us compared to Bill Pay providers and they greatly value the increased control our service gives them."

These price changes will come into effect for all customers from October 1st 2016.


Price Change FAQ's

When will these changes come into effect?

October 1st 2016

How did you determine the level of discount?

In order to insulate our customers from short term energy price volatility and to avoid frequent price changes, we buy our power over a year in advance.  We are passing on savings in these wholesale prices to our customers.

How did you determine the standing charge increase?

The Commission for Energy Regulation (CER) announced a range of changes in network and other regulated costs, and we are passing on the net effect of these costs on us.   

 

What do these changes mean to a typical electricity customer?

What is the impact of reduction for 24h customers

Saving of €6.36 on electricity usage and an increase of €2.18 in the standing charge, resulting in a net change of €4.61 (inc VAT) per year.

Will any customers end up paying more?

Yes. Those customers with very low usage (<1,800 kWh per year or less) will end up paying slightly more

What is the new Standard Unit Rate?

17.03 cent per kWh for 24 Hour customers, the cheapest Standard Unit Rate in the market

What is a Standard Unit Rate?

The Standard Unit Rate is the rate that customers pay once their discounted rate ends (usually one year after switching). Recent CER data suggests* almost 78% of customers are on their suppliers’ Standard Unit Rate.


What other elements are there to PrePayPower pricing?

1. Standard Unit Rate

PrePayPower offers the cheapest* standard unit rate in the Irish electricity market. Standard unit rates are the price you pay for the electricity you consume. Units are calculated in kilowatts per hour or kwh. On average your consumption makes up 72%** of your annual electricity costs which makes the standard unit rate you pay the biggest consideration when choosing an Electricity provider. The amount of the standard unit rate depends on the type of rate that is applicable to you (see the rates table for details).

2. Standing Charge
Your Standing Charge covers the costs of getting electricity to your home including the wiring network and a share of the supply costs in servicing your account. They are charged by all suppliers and they vary by supplier. Maintaining up to date meter readings helps us reduce such costs. The Standing Charge will vary depending on whether you have a 24hr/NightSaver meter or if you have a Rural or Urban tariff (see table below for details).

3. Government Public Service Obligation Levy
The Public Service Obligation (PSO) levy is a mandatory charge that is the same amount regardless of the electricity provider you choose. It covers the generation of indigenous fuels (e.g. Peat) and renewable energy. It is mandated by Government and approved by the European Commission. The levy is used to contribute to the additional costs incurred by the ESB and other electricity generators which are not recovered by the standing charges.The Commission for Energy Regulation recently announced that the PSO Levy will increase for all households and businesses from 1 October 2016. From that time the Levy will increase to €80.30 per annum.

4. Prepayment Service Charge
There is also a daily prepayment service charge covers the costs of providing and maintenance the a Pay-As-You-Go service. This includes the ongoing supply and maintenance of the PrePayPower Smart Pay-As-You-Go system.

* Unit Rate comparison was made against all electricity suppliers’ standard unit rates on 08/09/2016. Please note that PrePayPower updated their prices on 01/10/2016 and after this change we still offer the cheapest Standard Unit Rate in Ireland. All pricing is subject to change. Standing & Prepayment service charges apply. Savings quoted relate to a reduction in electricity usage. All information correct as of October 2016. 

** 72% consumption rated based on PrePayPower’s standard 24hr urban tariff unit rates, standing charges, PSO levy and Prepayment service charge as of 01/03/2015 and the industry agreed average annual consumption figures of 5,300 kwh.

Thursday 12th May 2016

4.1% reduction in our standard unit rate

PrePayPower today announced a 4.1% reduction in its standard unit rate, reducing the unit rate for all customers. This reduction is driven by the PrePayPower commitment to having the lowest standard unit rate in the market. The latest reduction will bring the total standard unit rate reductions passed on by the company since the start of 2015 to more than 11% - more than any other supplier in the market. The latest change will result in a reduction of €39.10 on an average annual customer spend*. The change will take effect on June 1st.

Cathal Fay, CEO of PrePayPower commented that “We are delighted to pass on this saving to all our customers. Customers can be sure that they get this unit rate reduction no matter when they joined us. 94%** of our customers stated that they join us in order to control their costs, avoid bills and reduce their usage. They can continue to be sure that they will also avail of the lowest standard unit rate in the market.”


Notes

*Based on a 24h urban customer with usage of 5,300kWh. The average annual spend will reduce by 3%.
** In a survey conducted of over 1,500 PrePayPower customers in December 2015, 94%  of customers said that they switched to PrePayPower for the Pay As You Go service rather than price related reasons.

More information

What do I need to do to avail of the saving?

The price reduction will be available from the 1st of June 2016 onward.  

To avail of the price reduction simply top up on or after the 27th May and the new reduced pricing will be applied to your meter from the 1st of June.

We will be rolling out the price reduction codes on a phased basis from the 20th of May onward. This means that you will receive a 40 digit top up code the first time that you top up after your phase has occurred. Don’t worry, this is a once-off 40 digit top up code so that we can reduce the standard unit rate on your meter; you will get 20 digit top up codes from this point onward.


 

What other elements are there to PrePayPower pricing?

There are 4 parts to PrePayPower's pricing:

1. Standard Unit Rate
PrePayPower offers the cheapest* standard unit rate in the Irish electricity market. Standard unit rates are the price you pay for the electricity you consume. Units are calculated in kilowatts per hour or kwh. On average your consumption makes up 72%** of your annual electricity costs which makes the standard unit rate you pay the biggest consideration when choosing an Electricity provider. The amount of the standard unit rate depends on the type of rate that is applicable to you (see the rates table for details).


2. Standing Charge
Your Standing Charge covers the costs of getting electricity to your home including the wiring network and a share of the supply costs in servicing your account. They are charged by all suppliers and they vary by supplier. Maintaining up to date meter readings helps us reduce such costs. The Standing Charge will vary depending on whether you have a 24hr/NightSaver meter or if you have a Rural or Urban tariff (see table below for details).

3. Government Public Service Obligation Levy
The Public Service Obligation (PSO) levy is a mandatory charge that is the same amount regardless of the electricity provider you choose. It covers the generation of indigenous fuels (e.g. Peat) and renewable energy. It is mandated by Government and approved by the European Commission. The levy is used to contribute to the additional costs incurred by the ESB and other electricity generators which are not recovered by the standing charges. The Public Service Obligation (PSO) Levy for electricity was set at the October 2014 VAT inclusive rate of €68.20 per annum (18.68c per day).

4. Prepayment Service Charge
There is also a daily prepayment service charge covers the costs of providing and maintenance the a Pay-As-You-Go service. This includes the ongoing supply and maintenance of the PrePayPower Smart Pay-As-You-Go system.

* Unit Rate comparison was made against all electricity suppliers’ standard unit rates on 01/10/2015. All pricing is subject to change. Standing & Prepayment service charges apply. Savings quoted relate to a reduction in electricity usage. All information correct as of October 2015.

** 72% consumption rated based on PrePayPower’s standard 24hr urban tariff unit rates, standing charges, PSO levy and Prepayment service charge as of 01/03/2015 and the industry agreed average annual consumption figures of 5,300 kwh.

Tell me about the 9% consumption savings

Analysis of 15,422 PrePayPower customers found an average annual consumption reduction of 9% after switching to PrePayPower. Over 26% of the sample reduced by over 20% annually. Learn more.

Survey results explanation

In a survey conducted of over 1,500 PrePayPower customers in December 2015, 94%  of customers said that they switched to PrePayPower for the Pay As You Go service rather than a free credit offer or cheaper standard unit rate

What is the unit rate?

Unit rates are the price you pay for the electricity you consume. Electricity consumption is measured in units or Kwh (Kilowatt Hours) so the unit rate you pay is the rate charged for each Kwh of electricity you consume. Standing charges, which are charged daily, also apply in addition to the unit rates.

What is a standard unit rate?

The standard unit rate is the unit rate that applies once your temporary discount expires. Suppliers often advertise discounted rates with the discount being calculated from the standard date. So if your discount is 15% that means that your standard rate will be 15% more.

What about Day / night customers?

There is a 4.1% reduction on both the day and night units. This is a saving of €35.61 based on the PrePayPower Day/Night tariff using industry agreed annual average consumption of 5,300 kWh .



Thursday 17th September 2015

PrePayPower announces a further price drop for all customers

PrePayPower has announced a further price reduction for its residential electricity customers; bringing their total unit rate reduction to 7.4% since the beginning of 2015. The unit rate will be reduced from 17.98 cent per unit to 17.89 cent per unit*.

Speaking today, Cathal Fay, Chief Executive of PrePayPower said that the rate would be reduced to 17.89 cent including VAT, meaning that PrePayPower will continue to offer Ireland’s cheapest standard unit rate†. 

“This further price reduction displays our continued commitment to offer the cheapest standard unit rate† to all our customers. The standard unit rate is the most important rate as it is the one that most customers in the market actually pay.”

“PrePayPower is committed to offering customers a long term saving helping them reduce their electricity consumption via the use of our smart Pay-As-You-Go system”. 

“A recent analysis of 15,422 PrePayPower customers found that 26% of them reduced their consumption by 20% or more a year after they switched to PrePayPower,”** he added.

Click here to find out more or to sign up to PrePayPower today.

Notes:
† Unit Rate comparison was made against all electricity suppliers’ standard unit rates on 14/09/2015
* Unit rate of 17.89cent relates to 24hr customers, our new day/night rates will become 19.11/09.44 cent for customers with a day and night ESB meter. 
** Analysis of 15,422 PrePayPower customers found an average annual consumption reduction of 9% after switching to PrePayPower. Over 26% of the sample reduced by over 20% annually. More details >
Supplier rates due to change on October 1st 2015
Savings quoted relate to a reduction in electricity usage. All information correct as of September 2015. Click here for full pricing details
All pricing is subject to change see www.prepaypower.ie/pricing for our latest details

Some Frequently Asked Questions

What is a unit rate?

Unit rates are the price you pay for the electricity you consume. Electricity consumption is measured in units or Kwh (Kilowatt Hours) so the unit rate you pay is the rate charged for each Kwh of electricity you consume. Standing charges, which are charged daily, also apply in addition to the unit rates.

What are Standing Charges?

Standing Charges cover the costs of getting electricity to your home including the wiring network and a share of the supply costs in servicing your account. They are charged by all suppliers and they vary by supplier. Maintaining up to date meter readings helps us reduce such costs. The Standing Charge will vary depending on whether you have a 24hr/NightSaver meter or if you have a Rural or Urban tariff (see table below for details). Make sure that if you have  a nightsaver rate that your consumption of night units is high enough to make this the best value tariff for you.

Which unit rate is important for me?

The unit rate you pay is the most important rate for you. Always check your bill or your PAYG meter to see what unit rate you are currently being charged. When considering a switch always check the long term unit rate as well as the short term discounted rate. Finally, make sure that you’re being quoted prices inclusive of VAT because that’s the rate you will pay.

What is a standard unit rate?

The standard unit rate is the unit rate that applies once your temporary discount expires. Suppliers often advertise discounted rates with the discount being calculated from the standard date. So if your discount is 15% that means that your standard rate will be 15% more.

Why do you think that most people pay the standard unit rate?

Most discounts last for a 12month period whereas about 16% of customers switch on average each year. Some customers also contact their existing supplier and obtain discounts by doing so. However, as the majority of customers do not switch or contact their supplier they are on their supplier’s standard unit rate plans.

Are unit rates the only element of your tariff?

No, all customers pay unit rates, standing charges and a PSO levy. PAYG customers also pay a Prepayment service change. See prepaypower.ie/pricing for more details.

Does PrePayPower really offer the cheapest Standard unit rate?

Yes, we do. The standard unit rate we charge per kwh of electricity is the lowest standard unit rate of all electricity suppliers in Ireland. PrePayPower’s customers currently enjoy the cheapest standard unit rates so you’re in good company.

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Thursday 29th January 2015

PrePayPower announces energy cost reduction of 4%* for its customers

PrePayPower has announced a series of changes to its pricing structure which will see a 7%** reduction in its Standard Unit Rate to 17.98 cents, the cheapest standard unit rate†  in the Irish market. Customers will gain an average reduction in energy costs of 4%* - equivalent to a saving of €53* per year. The new charges will come into effect from March 31st 2015. 

Speaking today, Cathal Fay, Chief Executive of PrePayPower said that the company was determined to pass on savings in the wholesale energy market to all of its customers, not just to new customers. “Other suppliers choose to only give new customers their best rates, but our focus is on keeping unit costs low for all of our customers. This is why we are changing our Standard Unit Rate. Every one of our customers will experience the cheapest standard unit rate†  in the market. We believe that this is a fairer way to operate and means that we can reward our customers for remaining with us,” he said of the rate change.

Fay also confirmed that the experience of customers using the PrePayPower smart control system was to reduce their consumption of electricity and give them greater control over their energy costs. “Through using the smart control system, our customers have reduced their consumption by 6.6%*** on average,” he added. 

While reducing the Standard Unit Rate of electricity by 7%**, the company will increase its standing charge by 4.8 cent**** per day. According to Fay this increase is necessary to pass on increased costs it incurs. “Even after this change to our standing charge, it is still lower than that levied by many other suppliers,” he confirmed.

Media enquiries: 
Ray Gordon 
Gordon MRM 
ray@gordonmrm.ie

Notes: 
* Price comparison example made based on PrePayPower’s new 24hr Standard Urban tariff vs. the rate given to customers who signed up before 01/02/2015. Average industry usage figure of 5,300kwh per year was used. More information.
** Prices quoted relate to standard 24h meters. A 7% reduction also applies to the equivalent day / night metered rates 
*** Analysis of over 2,500 PrePayPower customers found an average consumption saving of 6.6% over a two year period. For more details see www.prepaypower.ie/save
**** Changes quoted related to urban customers. An increase of 6.4cent per day applies to rural customers. Prices subject to change. For full pricing see www.prepaypower.ie/pricing
†  The 'Cheapest Standard Unit Rate' comparison was made against all Irish domestic electricity providers' standard unit rates on 29/01/2015. Pricing is subject to change.