Best Energy Plans 

There are a few areas to compare when looking at energy deals side-by-side. Here are some of the most important ones to look at: 

Overall cost of the plan  

For electricity plans, most energy companies offer quotes based on the electricity reference price and the average usage in your area per kilowatt-hour (kWh). Gas providers charge for each megajoule (MJ) of gas that you use. Electricity retailers show a percentage difference between their price, and the national reference price, which is useful in comparing overall costs. 

For example, if one company's electricity plan is 3% less than the reference price, while another is 6% less, you can easily compare them and see which one offers the cheapest electricity deal. Knowing the overall cost of a plan will help you budget for your energy expenses and find a provider that offers the best value for money. 

There will also be a general supply charge, which is calculated in cents per day, and doesn’t depend on how much energy you actually consume. 

Types of plan: fixed or variable? 

Energy plans are offered with either fixed or variable rates. 

• Fixed rates: some plans come with fixed rates, meaning there won’t be any rate rises for a set period (usually a year). This can be a good option for those who prefer certainty in their bills and want to avoid any unexpected price increases.  
• Variable rates: look out for low variable rates on plans, but keep in mind they can change over time. These plans can be flexible and offer potential savings, but there’s a risk of rate increases in the future. 

Discounts 

Many energy providers offer conditional or guaranteed discounts on your bills. This can help save on annual energy costs. The sort of discounts that may be on offer include: 

• Bill credits: bill credits offer a set dollar credit amount off your energy bill, either as a one-off standalone amount or as an ongoing discount. For example, in one energy plan from NSW, you can get a $100 bill credit when you sign up, or a 4% discount on your bill ongoing. 
• Bundling discounts: if you choose to have both your gas and electricity plans with the same provider, it’s possible to get a bundling discount from the retailer 
• Sign-up incentives: some providers offer access to rewards programs, frequent flyer points or entertainment services when you sign up for their energy plan. This can be a good way to get extra value for your money. 

Tariffs 

A tariff refers to how you’re charged for your energy use. There are many different forms of tariff, depending on whether you’re comparing electricity, gas or solar tariffs. 

• Electricity tariffs include single rate tariffs, time of use tariffs and controlled load tariffs. Each of these charges a different rate for the electricity you use. Knowing when you use the most electricity will help you determine the best tariffs to choose to help you keep your bills down.  
• Gas tariffs are often in blocks of megajoules, meaning you may pay more for the first block you use (for example, the first 20 MJ of gas you use per day) and another rate for subsequent blocks. Most providers offer between two and six blocks. Again, knowing how much gas you tend to use may assist you in finding a provider with the lowest tariffs for your energy use.  
• Solar tariffs – unlike gas and electricity, solar tariffs refer to the amount you’re paid for the excess power your solar panels generate. This is also known as the feed-in tariff, as it refers to how much electricity your panels feed into the national energy grid. Feed-in tariffs are measured in cents per kWh, and may also be in blocks in the same way as gas tariffs. For instance, you may be offered 17c per kWh for the first 8kWh per day and 3c for subsequent amounts.  

Fees 

Just like many banks, energy providers charge fees for all sorts of reasons. These may include:  

• New connection fee 
• Disconnection fee 
• Membership fee 
• Direct debit fee 
• Credit card payment fee 
• Paper bill fee 
• Late payment fee 

By comparing fees, you’ll be able to see which retailer offers the best possible value for money with the lowest fees. 

Online tools and support 

Look for energy providers which offer online tools and support, such as a mobile app or website account access, to help you view and manage your energy usage and bills.