Cheap Energy Plans 

There are a few key factors you should consider when comparing energy plans, including: 

Usage rates 

Look for a plan with the lowest usage rates. This is the amount you pay for each unit of electricity you use, measured in kilowatt-hours (kWh) for electricity or megajoules (MJ) for gas. 

Tariffs 

Tariffs describe the pricing structure that you are charged for your energy. While there’s only one set rate for gas, there are often block rates which apply for gas usage. This means you can be charged one price for the first block of gas you use (a block is a set number of megajoules) and another price for subsequent blocks of use.  

Electricity tariffs are a little more complicated, with some retailers having up to five different tariffs. These include: 

• Single rate tariff: this is the simplest and most common tariff available, where you pay a single fixed rate for each unit of electricity you use 
• Time of use tariff: this type of tariff charges you different rates depending on the time of day and day of the week that you use electricity. Peak times (usually during the day and early evening) are charged at a higher rate, while off-peak times (usually overnight or at weekends) are charged at a lower rate. 
• Controlled load tariff: this type of tariff is specifically for certain appliances such as hot water systems or pool pumps, where you’re charged a lower rate for electricity used during a specific period, typically overnight. Often the appliance has its own electricity meter and may be described on your bill as a ‘dedicated circuit.’   
• Demand tariff: this tariff is based on your highest usage during a certain period, usually a month. You pay a fixed charge for the maximum amount of electricity you've used at any one time, rather than the amount of electricity you use overall. 
• Feed-in tariff: if you have solar panels installed, you may be eligible for a feed-in tariff. This is where you’re paid for the excess energy your solar panels generate which you don’t use and feed back into the national grid. 

Supply charges 

A supply charge is a daily fee which energy retailers charge customers for supplying electricity or gas to their premises. It covers the cost of maintaining the energy network and infrastructure which delivers energy to customers' homes or businesses. The supply charge is a fixed cost, regardless of the amount of energy consumed and is measured in cents per day.  

Renewable energy options  

If you’re interested in reducing your carbon footprint on the world, many retailers offer renewable energy options. Look for plans which offer green energy options or carbon offsets. Such options encourage retailers to purchase energy that has been generated by renewable energy sources such as the sun and wind. It may cost a little more, but you’ll have the satisfaction of knowing that you’re assisting Australia’s switch to renewable energy by helping to fund the building of new renewable energy infrastructure.  

Fees 

Check for additional fees such as connection and disconnection charges, late payments fees, credit card fees, paper bill fees and so on. These can add up quickly and significantly increase your bill. 

Discounts 

Check for any discounts available, such as join-up bonus offers, pay-on-time discounts or direct debit discounts. These can help you save money over the life of your energy plan. 

Contract terms 

Consider the length of the contract and whether there are any exit fees if you choose to switch providers before the end of the contract. Longer contracts (ie. ones which last more than a year) may not be cheaper than variable-rate contracts, but they may provide some certainty about the cost of your energy use.