Electricity prices which saw a steep peak in the past decade, are now decreasing. The introduction of legislations such as the Default Market Order and the Big Stick by the Australian Government is believed to be a key reason behind these price drops.
If you have your eyes set on finding the best energy deals in your location and saving on costs, you must look for websites that let you compare plans offered by various distributors.
If you have concerns about making a switch, the article will help make your decision easier.
Factors to Consider When Comparing Best Energy Deals in Your Location
Supply Charge
Supply or fixed charge is the amount you will be paying every billing cycle, irrespective of whether you use energy or not. It is the cost charged by the company for delivering energy to your house.
For example, if you live alone or with another person, your energy usage might be low. In such a case, the supply charge would account for the majority of your bill. Thus when comparing plans, look for a deal with a low supply charge to save on costs.
Usage Charge
Usage or variable charge is the amount you will pay for the energy units you end up using.
For example, your energy usage might be high if you have a medium or a large household. Thus, opting for a plan with low usage charges would be an ideal option for you.
Tariff Plans Offered
Single rate, time-of-use, demand and controlled load are the main types of electricity tariffs. Any household can apply for a single rate plan with a standard metre. If you have a smart metre and you want to make the most of the off-peak rates offered under a time-of-use tariff; so ensure your plan allows you to do so.
It is recommended that you first go through your current bill, understand charges, know what type of metre you are using before you start comparing plans, trying to find the best energy deals.
Additional Fees
Apart from supply and usage charges, there might be other fees you will be paying.
For example, if you miss payments, what is the late fee amount? If you use a credit card, will that attract additional fees? Can you terminate the contract earlier? Do you have to pay any penalty?
Without information on additional fees, your energy bill could end up being well higher than your estimate.
Billing Period
As per law, you are supposed to receive your electricity bill once every three months and your gas bill once every two months. Depending on the provider, you can opt for a shorter billing period, for example, monthly.
Customer Service
Energy bills account for one of the major costs in Australian households. In case of any issue with the bill, you must have a proper channel to have your issues addressed. Know what medium you can use to connect with your provider. Do you drop them an email, chat with their representative online, or do they have a number you can ring?
Energy prices differ according to your location. For instance, if you’re experiencing PPL rates increase or electricity rates in general, it’s essential to understand the reasons behind the increase and explore ways to manage your energy costs. If cost-efficiency is your priority, using third-party comparison websites to find the best energy deals would be the way to go. Look at factors like supply and usage charges, competitive tariffs, low fees and good customer service to find the energy plan best suited to your needs.
