A new energy provider is aiming to shake up the market by giving consumers direct access to wholesale electricity prices, alongside a commitment to full price transparency.
PowerHub said it would replace traditional retailer margins with a pricing model based on the wholesale rate plus 10%.
Exposure to wholesale electricity prices may sound risky given potential market volatility, but PowerHub says it will help customers manage that risk through monthly solar and battery plans designed to smooth out price fluctuations.
Flick Electric was a well-known provider that offered similar access to wholesale electricity pricing, although it faced challenges during periods of high market prices and was eventually sold to Meridian Energy.
However, Founder Sophia Bristow says PowerHub will be different, pointing to its battery and solar integration.
The battery system would be available on an opt-in monthly subscription, with customers receiving a 15 kilowatt-hour (kWh) EcoWave unit designed to store electricity when prices are low and discharge it during peak pricing periods or outages.
PowerHub is seeking to raise $650,000 through PledgeMe to help bring its concept to market.
It said that under its base offering, members would get access to real-time wholesale electricity pricing, including low-price periods that can drop to as little as one to two cents per kilowatt-hour.
Bristow said traditional fixed-price electricity contracts effectively include an embedded “insurance premium” to protect retailers against price volatility, but she argued this structure means households can miss out on savings when wholesale prices fall.
“We’re changing that by passing those savings directly back to members.”