By opting for a more affordable energy plan, you can look forward to significant yearly savings. With more players competing in this sector, price cuts are a given.
Electricity companies are expected to conform to a retail code by adopting a standard pricing method. This set practice makes it easier to compare energy prices and identify the best deal.
Understand Your Billing
A thorough comparison is possible when you comprehend the different aspects of your current energy bill. These include:
Contract Type
Smart meters are designed to measure and record your electricity usage. This data is then transmitted every 30 minutes to your electricity distributors (the company that owns and maintains the grid, poles, and wires). Your energy provider also receives the data and may make it available to you via a web portal or app, allowing you to monitor your energy consumption, better manage your costs, and compare different offers that may be more suitable.
The kind of contract you have entered into with your existing service provider determines whether you stand to benefit or not. A market contract entitles you to more competitive usage rates, perks, and discounts that can change once the contract ends.
When a standard or regulated contract applies to you, there is no provision for discounts and neither can you avail of competitive retail pricing when bound by such a contract.
Applicable Tariff
The tariff or rate levied on your energy usage can depend on the time of usage. For instance, a provider who segregates peak and off-peak tariffs will invariably charge you less when the energy demand is low.
If your plan reflects a single rate tariff, you are charged the same amount irrespective of when you consume energy. On the other hand, time-of-use tariffs vary throughout the day and require you to install a smart meter.
Discount Provisions
Examine if your present provider is offering you any form of discount. You may be eligible for a discount on utilising a specific payment mode or simply for paying on time. There could also be unconditional discount entitlements worth considering.
Basis Comparison Points
You should compare energy plans for your home based on the listed three essential aspects:
Reference Price
As determined by the Australian government, the benchmark or reference price depends upon the average electricity usage in your area. Energy retailers resort to a percentage to indicate how their pricing compares to the benchmark set. Keep an eye out for a higher percentage off on the reference pricing.
When conditional discounts on a plan are put into perspective concerning the benchmark price, it clears all doubts. Knowing the estimated annual cost with discounts included also eases your comparative study of various plans.
Existing Plan Review
You need not have to switch providers if your current retailer can offer you a better energy deal. Review your existing plan with them by comparing it against the reference price and checking for discount entitlements. Freeze on a plan competitively priced against the reference price.
Rate Comparison
Refer to your current bill for the energy rates that apply to you. Once you are clear of the figures, compare the rates offered by similar service providers. Accordingly, you can narrow down on a plan reflecting a rate significantly lower than your present tariff.
Shop around on a reputed platform that focuses on your interests and gives you access to energy deals that conform to your household budget. These plans also lure you with impressive usage rates, features, and discounts.
