Comparison might be the biggest thief of joy, but when it comes to cutting down your electricity bills, comparing different electricity providers is your greatest ally!
Just like any other Australian, you want to manage your household expenses wisely. But increasing electricity costs might come in your way, holding you back from saving money.
The good news? With a number of affordable energy plans and reputable providers in the market, finding a cost-effective plan that meets your needs is actually easier than you think!
This guide will help you compare household electricity plans in Australia, empowering you to pick the best provider, enjoy premium service, and significantly slash your electricity bill.
Understanding the Australian Electricity Market
Before you compare household electricity plans, it’s crucial to understand the electricity market of Australia. In several states, including Victoria, South East Queensland, New South Wales, and South Australia, the market is deregulated.
This deregulation enables consumers to choose their electricity provider, fostering competition and potentially leading to better deals. However, with so many options available, choosing the right plan could be a bit daunting!
Break Down Your Electricity Bill
To effectively compare electricity plans and find the most affordable electricity rates, it's important to understand the key components of your electricity bill –
- Usage Charges:
The cost per kWh (kilowatt-hour) for the electricity you consume.
- Supply Charges:
A daily fixed fee to maintain the electricity supply to your premises.
- Discounts and Credits:
Incentives like direct debit reductions or pay-on-time discounts.
- Additional Fees:
Potential charges like exit fees or late payment fees for early contract termination.
By gaining an understanding of these elements, you can identify effective ways to slash costs and secure the cheapest rates for your household.
Factors to Consider When You Compare Household Electricity Plans
While evaluating different electricity plans, make sure to take the following factors into serious consideration –
- Tariff Type: Electricity plans might feature fixed or variable rates. Fixed rates remain constant for the contract duration, while variable rates can fluctuate.
- Usage Rates: This is the cost per kWh (kilowatt-hour) of electricity consumed. Lower usage rates can contribute to significant savings, particularly for households with higher consumption.
- Daily Supply Charge: A fixed daily fee for staying connected to the electricity grid. Even with low usage, a high supply charge might add up to substantial costs.
- Discounts and Incentives: Some providers come up with better discounts for paying on time, opting for e-billing, or bundling services. Make sure that you understand the conditions attached to these discounts.
- Contract Terms and Exit Fees: Beware of the contract length or any fees for early termination. Flexibility is paramount, especially if you expect changes in your living situation.
- Green Energy Options: If you are concerned over environmental impact, seek providers offering carbon offset programs or renewable energy options.
Some of the Cheapest Electricity Plans in Australia
Finding Australia’s most affordable electricity rates mainly depends on your location, as providers or rates differ across territories and states. Here are some cheap yet premium
electricity plans available in different regions –
Queensland (QLD)
- OVO Energy – The One Plan:
Estimated annual expense of $1,552 that is around 25% below the reference price. This plan provides multiple perks like solar feed-in tariffs, GreenPower options, etc.
- Sumo – Switch:
Estimated annual expense of $1,599, reflecting around 23% discount off the reference price. Some of the top features include compatibility with smart meters and solar feed-in tariffs.
New South Wales (NSW)
- Sumo Energy – Assure Residential:
Estimated annual cost of $600. Some perks include an ongoing benefit period and a regular supply charge of 78.10c/day.
- AGL Energy – Residential Value Saver:
Estimated annual expense of $610. This plan provides no lock-in contract as well as a regular supply charge of 63.95c/day.
South Australia (SA)
- Powershop – SA Power House:
Estimated annual expense of $1,847, representing around 17.2% discount off the DMO (Default Market Offer).
- Origin Energy – SA Origin Go Variable:
Estimated annual cost of $2,007 that is 10% below the Default Market Offer.
Australian Capital Territory (ACT)
- ActewAGL – Simple Saver:
Estimated annual expense of $1,921, providing around 21% discount off the Default Market Offer.
- Origin Energy – Origin Go Variable:
Estimated annual expense of $1,945, reflecting around 20% discount off the Default Market Offer.
The aforementioned estimates are mainly based on average usage and might differ. Consider comparing plans as per your energy consumption using tools such as Finder, Selectra, etc.
Steps to Compare Electricity Providers with Ease
To choose from the most affordable electricity rates in Australia, consider keeping these below-mentioned factors in mind –
- Check your electric bill to understand daily usage, discounts, and rates.
- Compare different electricity plans using Government comparison tools like Energy Made Easy, Victorian Energy Compare, etc.
- Explore commercial comparison sites like Compare the Market, Canstar Blue, iSelect, etc.
- Evaluate plan details including usage rates, tariffs, supply charges, discounts, and hidden fees.
- Don’t forget to read customer reviews to evaluate provider reliability and support.
Potential Saving – A Quick Comparative Overview
Looking to make a switch to the best providers for the most affordable electricity rates? To get a better understanding of the potential savings, consider the hypothetical comparison of electricity plans below, depending on a household with an average annual consumption of 5,000 kWh.
| Provider | Plan Name | Usage Rate (per kWh) | Daily Supply Charge | Estimated Annual Cost | Potential Annual Savings |
| Current Provider | Standard Plan | $0.30 | $1.00 | $2,650 | |
| Provider A | Saver Plan | $0.28 | $0.90 | $2,450 | $200 |
| Provider B | Green Energy Plan | $0.29 | $0.95 | $2,525 | $125 |
| Provider C | Fixed Rate Plan | $0.27 | $1.05 | $2,525 | $125 |
Important note – The figures mentioned above are illustrative and don’t represent actual plans. Actual savings will differ based on current market rates and individual usage.
Get Set and Reduce Electricity Consumption
So, you have decided to make a switch to a new provider to explore the most affordable electricity rates. But before taking the plunge, consider these strategies to cut down your energy costs and maximize your savings –
Invest in Energy-Efficient Appliances: Select appliances with high energy ratings for long-term savings, even if the upfront expense is higher.
Eliminate Standby Power Consumption: Unplug devices or utilize smart power strips to bring down wasted energy.
Optimize Air Conditioning: Set thermostats to optimal levels (around 19°C in winter and 24°C in summer) to strike a balance between comfort and savings.
Install LED Lighting: LED bulbs consume significantly less power and last much longer than traditional bulbs.
Utilize Timers and Smart Plugs: Consider automating your appliances to operate only when required.
Rely on Solar Panels: Solar panels can bring down reliance on grid power, often with special incentives from providers.
The Final Takeaway
If you need expert advice or professional assistance to compare household electricity plans, you can trust Comparable, one of Australia's most trusted comparison service providers. By partnering with top-notch energy providers, Comparable provides premium deals tailored to your needs, helping you make informed decisions fast and transition to a new plan without hassle.