5 myths about switching energy plans that are costing you money
Picture this. You’ve just received your electricity bill and it looks a lot higher than expected. You recently read somewhere that you could save hundreds by switching to another energy provider. You think about it and promise yourself you’ll look into it. Soon.
Fast forward four months and it feels like a replay of that same old feeling. Again.
So what’s stopping you from making that switch? Why are you continuing to pay your electricity provider more money when you could get the same service for less?
Here are 5 of the biggest myths about switching your power plan and if they are what’s keeping you from switching providers it’s time to make a new promise and save yourself some extra cash.
Myth #1. All those wires will need to change
Dreading the thought of having to change a whole lot of wiring at home if you switch energy providers? Good news. Moving to a new electricity retailer does NOT require any new electrical wires, meters or switches. In fact, it’s a process that can be carried out 100% online from scratch and won’t require anyone to visit your home at all.
Myth #2. You won’t have gas and electricity for days
That sounds awful doesn’t it? But the reality is that the switch from one electricity provider to the other happens in a way that won’t affect your power supply at all. When you sign up with a new retailer, they inform your current retailer to ensure a smooth transition. Your existing power company will continue to provide you with energy until your next bill is generated, after which the new retailer will take over.
Myth #3. You’ll be billed twice for the same period
Like we mentioned, the transition from one provider to the other is a seamless process and the switch only takes place after you’ve received your next bill from your current retailer. This makes sure that any pending dues are paid off and you don’t owe your existing provider anything. Your new provider will then take over from the next billing cycle and you’ll start receiving the regular quarterly or monthly bills for that provider.
Myth #4. It’s too hard to calculate how much you’ll save
If you had to go to every individual electricity retailer’s website to note their tariff plans and then punch the numbers into a calculator to figure out which one will save you, then yes, we agree, it would be really tough to compare energy retailers. Fortunately, that is not the case. Thanks to Mozo's energy comparison tool, you'll be able compare some of the available plans in your area with no calculation required!
Myth #5. The savings aren’t worth the effort
We realise this is subjective, but even if you only make a $50 saving by switching, that money is better off in your pocket than your energy provider’s bank account. According to our calculations, Victorians could save as much as $856 by switching from the least competitive electricity deal to the best offer on the market. And if you haven’t switched energy providers in a long time, then chances are you’ll find a plan that’s much cheaper than your current tariff. Given the really low amount of effort required to make the switch, we do think the savings will be worth it!