The contents provided on this page are for informational purposes only and do not constitute financial advice. Consider your personal circumstances and objectives before making any financial decisions.
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Everyone loves it when the quarterly bills start coming in, right?
Of course not. Energy prices are still shockingly high, despite wholesale electricity getting cheaper, and hopes that those savings will flow down to Aussie households hasn’t yet turned into energy bill relief.
While there is little the average person can do to directly affect the cost of utilities, comparing plans and providers can be a great way to make sure you’re always getting the best deal on the market.
The simple reason to compare and swap is to reduce the amount you spend on your energy bills. As nice as it would be for providers to reward loyalty with savings, it’s a very rare business that will reduce prices for no reason.
The good news is that the energy market is highly competitive, which puts more power in the hands of savvy consumers (that means you).
Swapping providers can help you:
Regularly comparing providers and plans takes a little effort (but not too much) and the potential effect on your utility bill can be significant. There’s no reason not to do it.
But if you’re raring to start comparing and saving, Beforepay offers a Compare and Save service, helping you scope out the best deals on electricity, gas, mobile, and broadband.
A few business days is all you have to wait for your provider to swap, with no interruption to the supply of your gas and electricity. Once upon a time, households would have to wait until their next meter read for a change to take place, but that has been significantly shortened (thanks, Australian Energy Market Commission).
This gives you more flexibility to compare and swap as often as you need.
If you are moving from an existing plan to a new one, you’ll need the following information to manually compare energy plans (most of which can be found on the last bill you received):
If you don’t want to manually input your information, some comparison sites, such as Energy Made Easy, offer quick comparisons based on your location and household size.
There is no definitive answer for this question, as it truly depends on your household. Though working out a ballpark figure, especially if you anticipate increased future usage, can help guide your choice of plan.
Most comparison websites will provide you with a general cost for a yearly plan, which is a good starting point, but it doesn’t hurt to double check the numbers.
According to Ecoflow, the approximate daily electricity usage per household size works out to be:
This is just a guideline. But if you have your latest bill handy, it may even show you your average energy usage over the bill period, which can help you set your own benchmark.
Once you have that benchmark, you can multiply it by the price per kWh to have a rough idea of how much a plan may end up costing you.
Simply take a plan’s price per kWh, multiply it by daily electricity usage, and multiply it again by desired time frame:
E.g. 0.30 (30 cents) x 14 (2 person household) x 90 (3 months) = $378 for the quarter.
This won’t be an exact indicator of what your bill will be but can work for illustrative purposes.
Comparison websites can help reduce gas and electric bills by providing a high-level overview of available plans. However, keep in mind that many comparison sites, such as Compare the Market and iSelect, only show plans with retailers they are partnered with, while leaving out others.
By using them, you may not be seeing every available plan on offer in your area.
The good news is that Energy Made Easy exists. This is a free, independent service that allows you to compare and search through all available companies to find the best deal for you. However, it’s not available in Victoria. For Victorian value-hunters, the state government’s Energy Compare has you covered.
If you’re looking for an electricity comparison and have lived in your current home for over a year, Energy Made Easy can even use your unique National Metering Identifier (NMI) to get personalised information on how much electricity you actually use—no estimates or average readings in sight.
Exit fees aren’t as common as they once were but they still exist within some energy plans. Before you make the switch, double check the terms and conditions to ensure you won’t be hit with a disconnection fee.
If you find that you do have an exit fee, you may be able to fold the cost into your budget or wait out the remaining duration of a fixed-term contract (if applicable) until you can disconnect free of charge.
The best decision will depend on your situation and the terms of your contract.
Due to the fierce competition in the energy space, energy plan promotions are everywhere, enticing people with additional value beyond just price discounts. Whether it’s bill credits, cashback, or bundled subscriptions, finding the right sign-up bonus can be a great sweetener for an essential service.
However, while they can be quite appealing, particularly in the short term, it’s important to evaluate each plan without the benefit, to ensure it will still fit your needs over time.
To help you find the most value-stuffed plan possible, Finder has a convenient round-up of some of the month’s best electricity and gas sign-up deals.
Once you’ve found the perfect plan, all that’s left is to make the switch— usually online or over the phone. Your new provider will handle everything on their end, including contacting your old supplier and informing them that their services are no longer needed.
If your plan has a cooling off period (typically 10 days), you can use the time to check out all the features of the plan and to ensure that you are completely satisfied with your choice.
Regularly comparing your plan with other providers can be a fantastic way to ensure you’re actually getting the best deal, or to catch price increases before they turn into bill shock (obvious pun, but it works—just like regular energy comparisons).
A potential option is to set a reminder for yourself every quarter or half-year to compare providers, take advantage of better pricing, score some sweet sign-up bonuses, and ensure you are getting the best value for money.
This may help you free up money that can be better spent elsewhere (hopefully on exciting things), all while you receive the exact same service.
If you find yourself needing to pay a higher-than-expected utility bill and your budget is feeling the strain, Beforepay Pay Advance can be an excellent way to get some breathing room while you start shopping for a better plan!
Yes it is. While it takes a little research to compare utility providers, it pays itself back in energy savings, added value, and the peace of mind knowing that you’ve got the best deal. And the more you do it, the faster you’ll get—soon you’ll be a value-hunting master.
Want to dive a little deeper into the details? Canstar has a great guide on switching energy providers, covering everything you need to know.
Disclaimer: Beforepay Group Ltd, ABN: 63 633 925 505. Beforepay allows eligible customers to access their pay and provides budgeting tools. Beforepay does not provide financial products, financial advice or credit products. The views provided in this article include factual information and the personal opinions of relevant Beforepay staff and do not constitute financial advice. Beforepay and its related bodies corporate make no representation or warranty, express or implied, as to the accuracy, completeness, timeliness or reliability of the contents of this blog post and do not accept any liability for any loss whatsoever arising from the use of this information. Please read our Terms of Service carefully before deciding whether to use any of our services.