Switching energy providers can seem daunting at first but the process has become much smoother in recent years.
Get comfy at your desk or kitchen table and follow these three simple steps.
1) Review your current energy provider's offer
Take a look at your latest bill or original energy contract and consider:
- What are your current rates? It may turn out that you're already getting a good deal.
- What is your current energy usage? You'll get a more accurate estimate from energy retailers and comparison engines if you are able to provide even a rough figure.
- Is your energy plan fixed or variable? You may not want to switch right away if you're rates are fixed and won't be changing for a few more months.
- Do the terms of your contract mean you may incur any exit fees? While most contracts are no lock-in sometimes there are exit fees due to certain conditions.
Armed with the answers to these questions you'll be ready to start shopping around. Have questions? Can't find
something on your bill? Get in touch with your energy retailer and ask them to help you find what you're looking
for.
2) Compare to find a better energy deal
This is the hardest part of the process. You have a few options for comparing energy deals.
- Visit provider sites one by one or call to ask for a quote
- Use a government energy comparison service such as energymadeeasy.gov.au or compare.energy.vic.gov.au
- Use a commercial energy comparison site
There are pros and cons to each option. Getting individual quotes from retailers will take up the most time but you may get a better offer than what's being advertised on their website.
Using retailer or commercial energy comparison sites may require giving over your personal details so they can follow up over email or telephone. Commercial energy comparison sites also may not show plans from all retailers.
No matter which option you choose to conduct your search there are a few things to consider as you compare energy plans:
- Price. Look out for plans that are lower than the reference price. That's a benchmark price that providers and commercial comparison websites must display to make comparing easier. The cheapest plan will have the greatest difference less than the reference price
- Tariff type. Your tariff type is usually determined by the type of meter you have installed make sure you know which type you're using to get an accurate quote
- Variable or fixed rate offers. Fixed-rate offers are less common during periods of uncertainty in the energy market, especially in the last 12 months. But with a fixed-rate offer, you could lock in a single rate for a year without having to worry about price fluctuations. A variable plans prices change generally once or twice a year around January and July
- Fees. These can come in all shapes and forms, credit card fees, a charge for connecting and disconnecting a property to the grid, admin fees etc. one plan may work out cheaper simply based on fees you can avoid
- Green options. There are a handful of carbon-neutral energy retailers such as Nectr, Energy Locals and Powershop. Many more offer GreenPower options where you can pay a fraction more to offset your emissions
- Solar feed-in tariffs. If your home is equipped with a solar PV system you'll want to pay attention to feed-in rates to make sure you're getting the best deal for the excess energy you contribute to the grid
- Other features. Some plans can include a heap of rewards points, discounts and other freebies. You may want a provider that offers monthly billing or an app to monitor your energy usage. A couple of providers offer energy bundled with an internet or mobile plan which may save up to $25 more per month
3) Make the switch
Found a better deal than the one you're currently on? Time to forge ahead with the switch. Visit or call your preferred energy retailer and sign up for your new plan.
There's no need to contact your current provider although they may check your meter one last time to issue a final
bill. The switch is arranged by your new provider which will send you a new contract. You'll be connected to the
grid the entire time.
If you do find a better quote but are happy with your current provider's customer service or other features on your plan, give them a call. It never hurts. They may make a better offer. It often costs more for them in marketing to find a new customer than it does to keep you happy.
Sometimes, they'll call you with a better deal just to get you to stay.
The process of transferring your details over to your new retailer is usually done within two business days.
Energy switching FAQs
How often should you switch energy plans?
Whether you're on a variable or fixed rate plan you should aim to compare energy plans every 12 months. Energy is an essential service, you're always going to need it you may as well make sure you're always getting the best deal possible. The difference between the cheapest and most expensive market offers can be hundreds of dollars, switching is the best way to save on your energy bill.
Can anyone switch energy providers?
Energy is a service that is highly regulated across Australia and the rules vary in different states and territories. Households in New South Wales, Victoria, South Australia, South East Queensland, and the Australian Capital Territory tend to have the most choice between electricity and gas providers.
The Northern Territory and Tasmanian energy markets are smaller with fewer options. In the Northern Territory, there are just a couple of retailers besides government-owned Jacana Energy.
The energy market is tightly controlled in Western Australia and the rest of Queensland. In Western Australia, depending on where you live, you'll only have the option of either Synergy or Horizon Power for your electricity retailer although you can compare options for gas. Outside of South East Queensland the electricity retailer is government-owned Ergon Energy. If you don't have the option of mains supply gas you can consider LPG gas suppliers.
What if I change my mind after I switch energy providers?
Every time you switch energy providers there is a 10-day "cooling-off period" in which you can cancel your new plan without any penalty. If you do that your switch will be reversed.
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Dylan Crismale
Digital Content Editor
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