How to Get a Cheap Electricity Plan in Australia Without Sacrificing Quality

Getting a cheap electricity plan in Australia while getting good service can be tough. But with the right approach and tools you can get a cost effective plan that suits you. This guide will walk you through the steps and tips to find the best deals without sacrificing service quality.

Understand Your Electricity Bill

The first step to saving on your bill is to know what you’re paying for. Your bill has two main components:

1. Daily Supply Charge: This is a fixed cost for supplying electricity to your home, regardless of how much you use.
2. Usage Charge: This varies depending on how much electricity you use, measured in cents per kilowatt-hour (c/kWh)​

Use Comparison Tools

Several websites can help you compare electricity plans. Finder, iSelect and Connect Market allow you to compare plans based on your location and usage patterns​. These tools will help you understand the different tariffs and find the best deals available.

Consider Your Tariff Type

Electricity plans have different tariff types. Knowing these will help you choose the best plan for your usage habits:

• Single Rate Tariff: A flat rate for electricity usage regardless of the time of day.
• Time of Use (ToU) Tariff: Different rates for peak, shoulder and off-peak times. This is good if you can shift your electricity usage to off-peak times​.
• Feed-in Tariff: If you have solar panels, this credit for excess energy fed back into the grid can offset your electricity costs​.

Look for Bundled Plans

Some providers offer discounts if you bundle your electricity and gas plans together. This can save you a lot and simplify your billing. Always compare the bundled plan cost with separate plans to make sure you’re getting a good deal​.

Check for Conditional Discounts

Many plans have conditional discounts like pay-on-time or direct debit discounts. These can reduce your overall cost, but be aware of the conditions. If you miss payments often, these discounts won’t benefit you​.

Avoid Exit Fees and Lock-in Contracts

Look for plans without exit fees or lock-in contracts. This gives you the flexibility to switch plans if you find a better deal later. Many providers offer no-contract options that give you this flexibility​.

Use Government Resources

Energy Made Easy website provides reliable info and comparison tools. Also, check if there are any government rebates or assistance programs in your area that can help reduce your energy costs​.

Use Smart Meters

Smart meters give you real time information on your electricity usage. This will help you understand your usage patterns and find ways to save. In Victoria, smart meters are compulsory and are most beneficial if you’re on a Time of Use tariff​.

Customer Reviews

Customer reviews can give you an idea of the reliability and service of different energy providers. Mozo and Canstar Blue have customer reviews to help you compare the services of different providers​.

Go With Green Options

If the environment is a priority, look for plans that offer green options. While these may not always be the cheapest, many providers have competitive green plans and some offer incentives for using renewable energy sources​.

Understanding Different Tariffs

Different plans have different tariffs. Knowing which tariff is right for you can save you money:

• Single Rate Tariff: If your usage is consistent throughout the day.
• Time of Use Tariff: If you can use more power during off-peak times.
• Controlled Load Tariff: For specific appliances like hot water systems that use power during off-peak times.

Use Smart Meters

Smart meters record your usage in real time so you can take advantage of off-peak rates. They can help you make informed decisions about your usage and potentially save you money by shifting usage to cheaper times of the day.

Use Government Rebates and Incentives

The Australian government has various rebates and incentives to help you reduce your electricity costs. Programs like the Victorian Energy Upgrades (VEU) program and the Solar Homes Program can help with energy efficient upgrades and solar installations.

Monitor Your Plan Regularly

Electricity plans and prices change so make sure you review your plan regularly. Set a reminder to check your plan and compare it with other options every 6-12 months so you’re always on the best deal​.

Get Professional Advice

If you’re not sure which plan is right for you, consider getting advice from energy consultants or comparison services. They can give you personalized recommendations based on your usage and preferences.

Tips to Reduce Electricity Usage

Reducing your usage can also reduce your bills. Here are some practical tips:

• Switch to Energy Efficient Appliances: Use appliances with high energy ratings.
• Use Smart Power Strips: These can reduce phantom loads from electronics that use power when turned off.
• Optimize Heating and Cooling: Set your thermostat to energy saving temperatures and make sure your home is well insulated.
• Use Natural Light: Use natural light instead of artificial lighting.

Understand the Default Market Offer (DMO)

The Default Market Offer (DMO) is the maximum price electricity retailers can charge consumers on default plans. So you have a fair deal even if you don’t compare. The DMO is a good comparison point.

Summary

Getting a cheap electricity plan in Australia without compromising on quality is all about understanding your bill, using comparison tools and choosing the right tariff. Bundling services, avoiding contracts with exit fees and smart meters will help you save on your electricity. Don’t forget to use government resources and read customer reviews so you can make an informed decision. With these tips you can get an affordable and reliable electricity plan for you.