Comparing energy plans? Here’s what to consider.
It’s not uncommon for Aussie households to take out an energy plan on a contract basis. If your contract period is coming to an end, you might be thinking about making the switch to another offer.
But if it’s been a minute since you last shopped around on energy deals, it can be tricky to navigate your way to a competitive deal. So, if you’re ready to take the plunge, here are a few things to consider when switching to a new energy offer.
Contract deals - yes or no?
While there is no clear-cut answer to this question, opting for a fixed energy plan can give a sense of security, knowing your energy charges won’t change for one or two years. However, it can also mean having to remain locked into a plan as other more competitive offers enter the market.
On the other hand, a no-lock-in contract energy deal can give you freedom and flexibility to switch when you’d like to. But it will mean that your energy prices can fluctuate. So keep in mind that choosing a variable energy offer will mean you have to be prepared to regularly switch your energy plan.
Daily energy supply and usage charge
It might surprise you to know that some charges on your energy bills comes from factors that aren’t necessarily in your control.
For example, your daily supply charge is the fixed amount your electricity retailer charges to supply your home with electricity everyday, regardless of how much you actually use. Network charges also makeup a massive part of your bill and are also a set charge.
In fact, according to Energy Australia, network charges - maintenance fees for equipment that draws electricity from the grid, like poles and wires - make up 50% of your electricity bill!
On the other hand, your usage charge is the cost you’ll pay for your electricity usage and is typically listed on your bill as cents per kilowatt hour (c/kWh).
Minimal or zero fees
Saving on your energy bill doesn’t always mean finding the cheapest offer, you’ll also need to think about fees. Some of the most common fees you might encounter are credit card processing fees, early exit fees, paper bill payment fees or late payment fees.
Although there’s no escaping some fees, you can opt to have your energy bills delivered electronically, making sure your bills are always paid on time and ensuring your new retailer does not charge any exit fees if you wish to switch to another offer.
This might not have been on your radar but is still worth considering. You can tell a lot about a retailer by the way they treat their customers. Spend some time reading reviews and written feedback from existing customers to gain a better understanding of their customer service, promptness to resolve issues and their trustworthiness.
One easy way to know what a standout retailer looks like is to check out the winner of our 2020 Mozo People’s Choice Awards where winners are chosen by everyday Australians. More than 3,000 Aussies rated their electricity retailer on things like customer service, bill clarity and trust.
One last factor to consider is whether or not you’d like to go green with your electricity. Many retailers have a GreenPower option among their selection of energy deals.
With a GreenPower plan, your retailer will buy the equivalent amount of electricity you have nominated, which can be between 10% - 100% from renewable energy sources, such as solar, wind or hydro.
Just keep in mind that GreenPower options tend to be slightly more expensive, as renewable energy still has a way to go in terms of infrastructure.
Ready to make the switch? All you’ll need is a copy of your most recent bill and our handy energy comparison tool.
Simply enter your postcode below to get started!