PowerShop – should you believe the hype?

At the moment everyone is talking about PowerShop the new energy retailer on the block.
They claim to be standing up to dirty coal, even GetUp had partnered with PowerShop and is actively encouraging people to switch.

So should you switch to PowerShop?

PowerShop does support the Renewable Energy Target (RET), and yes that is a big positive.

However what about the cons?

PowerShop is not necessarily cheap power.

PowerShop’s standard rates are not particularly low compared to other small retailers (e.g. Momentum, Lumo, Red).

Yes PowerShop does say you can get at least a 16% discount by logging into their online shop each month and buying PowerPacks.
This is what is known as a ‘conditional discount’. I.e. you only get a discount if you do this, this and this…
Will a home owner, business owner or strata manager remember to do this each month?
Even with the 16% discount you can still get cheaper rates from other small retailers (e.g. Momentum, Lumo, Red) without the hassle of buying PowerPacks each month.

So is PowerShop really that Green?

The company behind PowerShop does operate / invest in wind farms, but so does some of the major retailers.
PowerShop’s support of the RET is valuable contribution to the renewable energy industry.
But unless you pay extra for Accredited GreenPower, the electricity you purchase from PowerShop is no different to the major retailers.

You can buy Accredited GreenPower from any (or at least most) energy retailers at a cost of ~4.5c/kWh to 6c/kWh on top of your standard usage charges.
Buying Accredited GreenPower directly supports investment in new clean renewable energy in Australia.

So simply switching to PowerShop does not give you the ‘greenest’ electricity.

Switching to the retailer with the lowest rates AND purchasing Accredited GreenPower is of greater benefit to the Australian Renewable Energy Industry that simply switching to PowerShop.

However if you switch to PowerShop AND purchase Accredited GreenPower than you can be sure your electricity is pretty green. Just remember to buy those PowerPacks every month, or you will be paying a premium for it.