We know that if Shop A buys a product from Shop B, Shop A will then mark up the price of the product and then sell it to the consumer. To get a cheaper price, the consumer can go directly to Shop B.
Similarly, if electricity retailers buy at the wholesale electricity price and then sell it to residential consumers, wouldn't it make sense that residential consumers would get it cheaper if they buy directly at the wholesale electricity price?
The markup in price by the electricity retailers is basically to compensate them for the risk they take. They buy at volatile prices and sell at fixed prices. Residential consumers are therefore paying for price certainty a.k.a peace of mind. But is this peace of mind really worth it?
Below is the comparison of the 3 different electricity plans without GST....