In this article, Canstar Blue discusses what you’ll need to know about pay on time energy discounts: how they work, where to find them and if they could be right for you.
On this page:
- What is a pay on time discount?
- How do pay on time discounts work?
- Electricity plans with pay on time discounts
- What’s the catch with pay on time discounts?
- Are pay on time discounts the best way to save on energy bills?
- Who offers pay on time discounts?
- What types of energy discounts are there?
- Is a pay on time discount right for me?
What is a pay on time discount?
A pay on time energy discount rewards customers for payment punctuality by giving a set amount off the electricity bill. Depending on the provider and plan, the conditions of each pay on time discount can vary significantly.
Be aware that many energy discounts may only be valid for a year or two from the commencement date of the plan. Once that time frame ends, the plan will revert to the non-discounted price for electricity. Some electricity providers have ongoing pay on time discounts, so always check prior to signing on for a new plan.
How do pay on time discounts work?
Pay on time discounts work by offering you a percentage off a power bill for paying the full amount owing by the due date. There is no set discount amount between electricity companies and plans, though generally expect to see offers ranging from 5% to 30%, or even more in some cases. These discounts may also be stacked with other offers, such as direct debit discounts.
Electricity plans with pay on time discounts
Below is a list of some of the cheapest published deals from electricity suppliers on Canstar Blue’s database. For a more comprehensive search, use Canstar Blue’s comparison tool at the top of this page.
Here are the cheapest plans on our database that have pay on time discounts in NSW. This table includes products from referral partners†. These costs are based on the Ausgrid network in Sydney but prices may vary depending on your circumstances. This comparison assumes general energy usage of 3911kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.
Here are the cheapest plans on our database that have pay on time discounts in VIC. This table includes products from referral partners†. These costs are based on the Citipower energy network in Melbourne but prices may vary depending on your own circumstances. This comparison assumes general energy usage of 4000kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.
Here are the cheapest plans on our database that have pay on time discounts in QLD. This table includes products from referral partners†. These costs are based on the Energex network in Brisbane but prices may vary depending on your circumstances. This comparison assumes general energy usage of 4613kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.
Here are the cheapest plans on our database that have pay on time discounts in SA. This table includes products from referral partners†. These costs are based on the SA Power network in Adelaide but prices may vary depending on your circumstances. This comparison assumes general energy usage of 4011kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.
What’s the catch with pay on time discounts?
The primary condition for a pay on time discount is as the name suggests, pay on time. Failing to meet that condition will likely result in the discount being lost and the customer being charged full price. Given that some pay on time discounts can be as substantial as 30% or more, missing a payment could mean an extra $50+ on the next electricity bill.
Customers who are not entirely sure of making recurring payments on time should choose a plan with low base rates, or another type of discount.
Are pay on time discounts the best way to save on energy bills?
In the past, power companies have come under scrutiny for offering up plans claiming huge savings, when the reality has been that those discounts have been applied to very high base prices. In other words, the savings haven’t always been as great as they appear.
Nowadays, the biggest discounts will genuinely mean the biggest savings. This is evident in Canstar Blue’s electricity plan comparisons, as our price estimates factor in any conditional discounts. If a retailer promotes a discount of any kind, it must compare its overall price estimate to the reference or VDO as a percentage less than, equal to, or more than these default tariffs.
In light of recent scrutiny over big discounts, many energy retailers have now launched products with no discounts at all, claiming “just low rates” rather than marketing plans based on conditional savings.
Who offers pay on time discounts?
Pay on time discounts are the most common type of energy discount, but not all energy providers offer them. Currently, the electricity retailers offering a pay on time discount on some, or all, of their plans are:
What other types of energy discounts are there?
Although it’s most common for electricity providers to offer pay on time discounts, here are a few other conditional discounts to be aware of:
- Direct debit discount: Much like pay on time discounts, direct debit discounts are a reward for customers who reliably pay their electricity bills. Money will be automatically taken out of the elected account on the electricity bill’s due date. In return, your energy provider will take a percentage amount off the usage costs, or the entire bill depending on the contract.
- Bundled energy discount: Using the same energy provider for both electricity and gas needs qualifies customers to be eligible for a bundled energy discount. As with most discounts, the bundled energy discount might not apply for longer than a year or two.
- Email billing discount: Choosing to have energy bills emailed rather than physically posted means that energy providers save time and effort. To say thanks, they might offer a small discount as a benefit.
Energy retailers may also offer other discounts such as incentives for signing up online rather than over the phone, plus referral deals should a customer recommend a friend to their energy company.
Is a pay on time discount right for me?
Pay on time discounts are best-suited to those who are unlikely to miss a payment. Failure to pay bills on time could result in much higher costs. But if the bill is paid on time every time, there could be some great savings on offer.
Something to keep in mind is that discounts often only apply to an introductory period. What this means is that the discount may be lost once the benefit period (i.e. one or two years) is over. And while it may sound like a chore, it’s important to note that shopping around will likely reveal a better energy deal, especially for those who haven’t switched in several years.
To get started comparing energy providers offering pay on time discounts – and other types of discounts – follow the link below to Canstar Blue’s energy comparison tool.
Image credits: Andrii Medvediuk/Shutterstock.com
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