Compare Electricity Plans 

There are quite a few factors to consider when you’re looking to find the best energy plan for your household. Some of the comparison points you should look at include: 

Types of plan 

There are two different sorts of electricity plan to choose from:  

• A standard contract gives you the appropriate electricity price which is set by law in your state with no bells or whistles. It may be slightly more than a market contract, but you can change it at any time without paying exit fees.  
• A market contract comes with special conditions, often price discounts, which last for the period of the contract. There are usually exit fees applicable if you wish to switch providers during a market contract term. 

Variable vs. fixed rates for market contracts 

When you sign up for a market electricity contract, you may have the option of choosing between variable or fixed rates. Variable rates can change over time based on national market price changes and may be subject to sudden spikes or drops in price. Fixed rates, on the other hand, remain the same for a set period, providing greater predictability and stability for your energy costs. 

Overall cost of the plan 

All retailers provide offers based on the electricity reference price and average usage in your area. They also quote a percentage difference between their own price and the national reference price, so you’re able to compare costs. For example, one company’s electricity plan may be 4% less than the reference price, while another may be 3% less. This is a good comparison point to start with, as this helps you know you’re comparing apples with apples. 

Discount offers 

Electricity discount offers are often advertised as a way to save money on your energy bills. These discounts can come in various forms, such as a percentage off your bill, a set dollar amount off your bill, or a combination of both. However, it's important to carefully read the terms and conditions of the discount offer, as some discounts may only be available for a limited time or may have certain eligibility criteria. In some cases, the discount may only apply to a portion of your bill, while other charges (such as the supply charge) remain unchanged. 

Tariffs  

There are many different tariffs which can be charged for electricity, ranging from: 

• Single rate tariff: the cost per kWh is the same regardless of when you’re using the electricity 
• Time of use tariff: this tariff has different rates for different times of the day, such as peak, off-peak and shoulder periods. Peak periods are when electricity demand is highest, while off-peak periods are when demand is lowest. 
• Controlled load tariff: designed for high-demand appliances, such as a hot water system, underfloor heating or a pool heater, and billed at a separate rate from standard electricity usage 
• Demand tariff: this tariff is based on the highest amount of electricity you use during a specific period, regardless of the time of day 

The best tariff for you will depend on your electricity usage, when you use the most energy and what types of appliances you use it for. Having a clear idea about how and when you use electricity (which you can see from a recent electricity bill) will help you choose the most appropriate plan for your particular usage. 

Feed-in tariff  

A feed-in tariff is a program which allows homeowners with solar panels to sell excess electricity generated by their solar system back to the power grid. This tariff is also referred to as a ‘solar tariff' or ‘buy back rate' and is measured in cents per kilowatt-hour (kWh). Therefore, if you do have solar panels on your roof, a major consideration will be the feed-in tariff you receive.  

The rate you may be able to receive for your excess electricity isn’t fixed and depends on various factors, such as: 

• the type of solar system you have 
• whether you’re eligible for government solar rebates 
• the rate set by your state government 
• if your provider offers any additional feed-in rate on top of the state government's set rate. 

Fees 

Look at the fees that are charged by the provider, including: 

• connection and disconnection fees 
• credit card and direct debit fees 
• late payment fees 
• early exit fees 
• paper bill fees (that may be charged if you choose to receive your bills by mail instead of online). 

Comparing fees will help you see which provider is offering the lowest fees as part of their billing package.