Is the cheap electricity provider the cheapest? Not necessarily! It might seem like energy is pretty cut-and-dry; the gas that heats your stove and water; the electricity that keeps your fridge cold and your lights on. But it’s not quite that simple; if you’re in a deregulated energy market, there’s likely dozens of providers offering the same thing: energy. And the reason there need to be dozens is that they each package it a little bit differently. Those differences can save you a fortune… or cost you a fortune. So it pays to understand what to appear for!
Read the fine print
The conditions of a contract are the real gamechanger, and this can go both ways. Do you work from home during peak hours with your aircon full-blast? Or are you a night owl using most of your power in the early AMs? If you’re the latter, you could save heaps with a time-of-use (onpeak/off-peak) plan; if you’re the former, this could seriously backfire. Peak hour is when most of Australia is using most of its power; so for most of us, time-of-use won’t be the cheapest plan.
A higher solar FiT can mean cheaper energy for you; but as the expression goes, “there’s no such thing as a free lunch”. There’s probably something else you’re trading off compared to another plan with a lower FiT. So the question is, what’s the difference between this plan and the nextbest alternative, and does this work for you?
Discounts & Fees
Energy providers will often offer introductory signup discounts; after a certain period, they may expire, leaving you paying more than you have to. Can you sign-up again for a contracted period and get the same discount again? If so, do you want to? Energy prices have been falling in the last few years, so the odds are, there’s something better out there.
Some other discounts you may come across include direct debit, bundling, paperless billing, and pay-on-time discount.
What about fees? Well, because the expression goes “that’s how they get ya”. Some to keep an eye out on our fees for account establishment, late payment, disconnection & reconnection, exit, etc.
We hope we’ve cleared up a bit about how to find a cheap energy plan! Keep an eye on our blog for more helpful information.