How to Rate your Electricity plan
If it’s not broken, why fix it? When it comes to electricity, the answer is simple. It could save you money.
If you’ve been with the same provider for years, or simply want to check that you’re not paying too much, below are some questions you should ask your retailer (and what their answers should be).
1. What discount am I on? Is the Discount on all or part of my bill?
Many plans don’t come with a discount at all so first thing is to make sure you get a Discount. Nearly all providers will offer them, but sometimes you have to ask for it. Be sure to know exactly what your discount is too; a good discount is off both your usage (the power you use) and supply charges (the fixed daily amount).
2. How does my discount compare to other discounts in the market?
A good discount differs from state to state due to factors such as competition in the market. While Victoria offers some of the biggest discounts, their rates are often higher as their market is deregulated. There are a range of government sites that let you compare discounts and rates, including Energy Made Easy in NSW, Your Choice or SwitchOn in VIC, and Price Comparator in QLD.
3. Does a fee apply for exiting my contract early?
You know you’re on a good deal when the plan has NO exit fees, which means you can switch at anytime if your rates increase or if you’re simply unsatisfied with your provider. Exit fees are capped in Victoria but can be as high as $100 or more in other states.
4. Will I receive hard copy or email bills?
Talk to your provider about what works best for you. While the trend these days is for email, we think you should be able to receive hard copy bills if you prefer.
5. What payment methods can I use?
Check with your retailer to see what discounts they offer for different payment methods. From direct debit discounts to pay on time, it’s worth double-checking with your provider to see what they offer.
Switching electricity providers doesn’t have to be difficult.
Switching, or the readiness to switch, is what gives households power. It only takes a few minutes to complete your part of the switching process online or over the phone. In a recent survey 86% of switchers said the process was “easy” or “very easy.”
At the end of the day, St Vincent de Paul estimates some households could save as much as $710 a year by switching to a more competitive offer – so we think it’s worth investigating.
