Given that people have varying needs and preferences regarding electricity consumption, providers often offer a wide range of plans to accommodate these differences. Choosing the right electricity plan is like shopping for an internet package—you want to find the most cost-effective and suitable option for your needs.
So how to compare electricity plans to find the best rates and save money? This guide has all the information you need. We’ll walk you through the key factors to consider when evaluating electricity plans and outline a step-by-step comparison process to help you secure the best deal for your home or business. Let’s get started!
Why Should You Compare Electricity Plans?
Comparing electricity plans matters. It allows you to stay on top of your energy bills, especially with the rising cost of living. Here are the main reasons why you should compare electricity plans before making a decision.
- Cost saving: Electricity rates vary from one provider to another; even slight differences could result in huge savings over time. In addition, factors like wholesale costs, network charges, and environmental policies might lead to rising costs. Electricity comparison makes sure you are not paying more than you need to.
- Impact of seasonality: Due to the increased need for heating and cooling, electricity demand is typically higher in the summer and winter. Comparing electricity plans allows you to take advantage of lower rates in off-peak times and better manage seasonal energy costs.
- Fixed vs. Variable rates: Energy providers usually offer two main options, which could impact your electricity bills significantly.
– Fixed-rate plans: These plans offer a stable and predictable rate, typically for 12–24 months. However, you might miss out on potential savings if market prices drop.
– Variable-rate plans: Based on the current market price, your electricity bill could change over time. You can benefit from lower prices for certain periods but get higher costs during periods of high demand.
What Should You Consider When Comparing Electricity?
Electricity comparison is essential for saving money and getting the best deal. Here are a few things to consider when you compare electricity plans.
1. Compare the entire market
To secure the best deal on electricity, it’s wise to compare the entire market rather than just a few providers. Using comprehensive comparison services like WATTever and Energy Made Easy can help you quickly and easily evaluate a wide range of electricity plans, ensuring you find the most cost-effective option for your needs.
2. Know your electricity usage
It’s important to know how much electricity you use before you compare electricity plans. Your recent electricity bill should provide all the details, including the quantity of electricity used over time (kWh), your tariff type, and other factors that may impact your bill, like controlled loads, solar exports, and concessions.
3. Get the lowest price instead of the discount
Many providers promote a marketing discount based on the Default Offer. While the Victoria Default Offer states a set usage rate and daily supply charge, the rules in the other states are more complicated, resulting in significant differences in the average electricity prices in Australia.
It is worth noting that the marketing discount only reflects a hypothetical average home, not your actual situation. When you compare electricity plans, it is better to ignore the distracting discount and focus on the cheapest price.
4. Understand the pay on-time conditions
Some electricity plans require you to pay on time to enjoy discounted prices. You might end up paying more if you miss a payment due date. If you are not so sure if you can make the payment for on-time discounts,prepaid electricity plans might be a better way to give yourself and your family peace of mind.
5. Take advantage of solar energy
You should also calculate your solar generation’s value when comparing electricity plans. This is because if you can generate electricity at home with solar panels, you can benefit from solar feed-in tariffs, an extra payment you receive from your electricity provider for the unused electricity generated by your solar panels.
Investing in solar power not only helps you take advantage of these tariffs, but also supports reliable energy solutions. For instance, a backup system like the EcoFlow DELTA Pro Portable Power Station can help store excess energy and keep your home running smoothly, ultimately lowering your energy costs.
6. Explore Renewable Energy
More and more electricity plans incorporate renewable energy. By comparing electricity plans, you will find some providers offering renewable energy options with sources like solar or wind. They are less susceptible to global fossil fuel market price fluctuations, offering more stable electricity bills.
Renewable energy plans might cost a bit more than traditional ones. Whether the additional expense is worth it depends on your financial situation and environmental commitment. Alternatively, you can consider generating your own electricity with a portable power station and solar panels installed on your rooftop. This allows you to power your home while reducing the amount of electricity you need to purchase from providers.
How to Compare Electricity Plans?
As introduced earlier, you can compare electricity plans with comparison services. For instance, Energy Made Easy is a government-backed service, operating in Australian states and territories that have adopted the National Energy Customer Framework (NECF).
That is to say, if you live in New South Wales, Queensland, South Australia, Tasmania, or the Australian Capital Territory, you can use Energy Made Easy to find the perfect plan! It’s easy to compare electricity plans with Energy Made Easy. Here’s how it works.
- Enter your suburb or postcode to find energy companies that serve your area.
- Answer a few questions about your home or business.
- Enter information such as your NMI (National Meter Identifier) to get a detailed electricity comparison.
- Compare electricity plans and get the best deal.
How Do You Switch Electricity Providers?
Once you have made a decision, you are ready to switch your providers! Here’s a step-by-step guide.
- Sign up with your new provider after you find the ideal plan.
- Your new provider will handle the rest. They will notify your previous provider and make the switch.
- Your old provider will send you a final bill. Make sure there are no outstanding charges.
- Sign up with your direct debit for convenient, automated payments.
That’s it. Now you can sit back and enjoy your new plan with more savings!
Conclusion
Electricity comparison allows you to potentially save money and get the best value for your electricity consumption. This guide has introduced what to consider for electricity comparison, how to compare electricity plans, and how to switch providers in Australia. For those who value reliability, consider whether a home backup generator might complement your energy plan. With these insights, you can now make informed decisions, optimize electricity costs, and choose a plan that best suits your lifestyle and values.
FAQs
Are there any hidden fees when switching electricity plans?
Yes. There might be hidden fees when you switch electricity plans, and these are common ones.
- Exit Fees: Your current provider might charge you an exit fee when you terminate a fixed account early.
- Connection Fees: You will need to pay a connection fee to your new provider when moving to a new property.
How often should I compare electricity plans?
It’s recommended to compare electricity plans every 3-6 months, before contract renewal, or annually. This is because electricity rates fluctuate based on factors like supply, demand, and weather conditions. You can make regular electricity comparisons to save money on your electricity bills.
What is the best site to compare electricity prices?
To compare electricity plans in Australia, the government-backed Energy Made Easy is deemed the best free choice. It allows users to compare electricity from all providers in states and territories. Some other good options are Compare the Market, WATTever, iSelect, Victorian Energy Compare, and Finder.
What type of electricity plan is best?
The best electricity plan depends on your needs. Generally, if you prefer certainty in energy costs, a fixed-rate plan is an ideal choice. A variable rate plan, on the other hand, is suitable for consumers who are willing to monitor the market to take advantage of lower prices. Additionally, a home backup generator is a reliable solution to power your home while reducing energy bills, which is great for environmentally conscious consumers.