If you haven't evaluated your energy plan in a while, there is a good chance you're overpaying for electricity. Unless you enjoy paying more for utilities than necessary, it is a good idea to rethink your energy strategy once a year. Energy is a necessity you can't avoid, but the rates continue to increase. According to the Australian Energy Market Commission's 2022 review, the average household in Australia spends around $1500 annually on energy bills. This is a considerable amount of money; choosing the energy provider can help you save a big chunk of it. As the benefits and discounts used by energy retailers to entice new customers to stay, the value of these plans tends to erode over time. There are several factors to consider when selecting an energy provider, and this blog post will cover some of the most important ones.
1. Approach your current energy provider
The first step is to contact your current energy retailer and see if they can offer you a better deal, as there may be discounts and concessions available that you currently may not receive.
But if you want to ensure you're getting the best deal on the market for your needs and preferences, you'll need to look around and see what else is out there. To compare electricity in NSW, you can start by logging into comparison websites to check different providers and their plans.
2. Check if you can change your energy provider
Most states in Australia allow you to choose your own electricity retailer, and you can pick from plenty of options. You can switch energy providers if you buy a new home. Your real estate agent may recommend a specific retailer, but it is up to you if you want to go ahead. The same is true if you are renting as well. If you stay in a multi-unit complex, you still are allowed to choose an energy provider for your unit alone rather than using the site owners. Although this depends on whether the retailer will make you an offer.
3. Check if you are paying the right price
The Australian Energy Market Commission (AMEC) revealed in its 2020 Retail Energy Competition Review that the leading cause of residential customers switching providers was their discontent with the value provided by their current energy plan.
This may seem obvious, but you must ensure that your new electricity plan will save you money. When you switch retailers, you will continue to receive the same energy from the same distributor because your property is still connected to the same network via the same poles, cables etc. Making an electricity comparison and switching retailers primarily ensures you get the best energy deal.
If you haven't changed energy providers in a long time, you may be on the Default Market Offer (DMO), a price set by the Australian Energy Regulator (AER). The DMO is intended to act as a price cap for energy retailers, preventing long-term customers from paying too much. It is also meant to serve as a clear reference point for energy prices that consumers can understand when comparing offers from different retailers. It is not, however, intended to be a competitive offer in and of itself.
4. Read the fine print
Most market contracts may include discounts not available through the DMO but may also include fees, which you must check that you understand before signing the dotted line.
Providers frequently offer conditional discounts for paying your bill on time or using a specific payment method, such as direct debit. Determining whether these discounts apply to the entire bill or only to usage charges is also important.
Getting the right energy provider
In conclusion, choosing the right energy provider for your home in Australia is essential. Contacting the current provider for discounts, comparing prices and plans and carefully reading the fine print are some of the factors to consider when planning. It also helps if you do thorough research and use comparison websites to understand what each provider offers and how they fare against each other.
