Synergy tariffs to rise up to 18% for business in 2007-08

State owned energy retailer Synergy Energy has announced tariff increases of up to 18 per cent for business customers.

From July 1 businesses on the T1 tariff will pay 18 per cent more in the 2007-08 financial year, with a 5 per cent increase per annum for the next four years.

Businesses on the S1 tariff will pay 15 per cent extra, and then 5 per cent for the next four years, with businesses consuming 50MW per hour or more on a yearly basis face a 9 per cent increase next financial year, plus 5 per cent for the next four years.

The full text of a company announcement is pasted below

Synergy today annoucned a modest increase to its account establishment fee, the overdue account fee and rejected payment fee.

Under the changes:

• The account establishment fee will be increased by $2.30 to $29.80, as of 1 July 2007. The fee was last increased in July 2003.
• The overdue account notice fee, which was last increased in July 2002, will be increased by 30 cents to $4.10 as of 1 July 2007.
• A new $8 fee to recover Synergy's direct costs associated with payment rejection is being introduced. Currently only indirect fees are recouped.

These fees have been set to recover the costs incurred in extablishing new accounts and recouping late or rejected payments.

The account establishent fee and overdue account notice fee remain equal to or below equivalent fees of other businesses in Western Australia and around the country.

The changes will apply from 1 July and coincide with increases to medium-to-large business tariffs announced today by the Government.

These tariff increases - the first in fifteen years - mean:

• Businesses consuming 50MWh or more per annum (or with an annual electricity bill of approximately $8,000 or more). The tariff for these customers (R3) will increase by nine per cent in 2007-08 and five per cent in each of the following four years.
• Businesses on the S1 tariff, which will increase by 15 per cent in 2007-08 and five per cent in each of the following four years.
• Businesses on the T1 tariff, which will increase by 18 per cent in 2007-08 and five per cent in each of the following four years.

The increased tariffs are necessary as a result of increased generation and transmission costs. The additional revenue will either be absorbed by network costs or flow through Verve Energy via the vesting contract.

Synergy will advise all affected business customers directly by mail and notification of fee changes will appear via newspaper advertisements.