How to choose an electricity provider

Fact Checked

In this article, Canstar Blue discusses how to choose an electricity provider. By simplifying the process with the following steps, finding an electricity provider will seem far easier, leaving you with choice and control.

1. Price

Depending on location and average energy usage, the difference between the cheapest and most expensive electricity plans can be hundreds of dollars a year. However, the cheapest electricity plan may not always be the best plan for your needs, especially if you prioritise other factors.

Paying a little more is sometimes worth it for great customer service or amazing perks. This could mean choosing an energy retailer with an Australian-based call centre, but consider what else is included. One retailer might offer extra incentives, such as free movie tickets and another may offer frequent flyer points. One electricity company may be more expensive than another, but compare the value that they both offer before making a decision.

Cheap electricity plans in Australia

For those wanting to reduce electricity costs, below are some of the cheapest electricity plans across New South Wales, Victoria, South East Queensland and South Australia.

2. Customer service

An energy provider may offer cheap prices, but it could mean cutting back in important areas, such as customer service. Quality customer service means more than just the way a phone is answered and by whom. Consider whether an electricity provider offers social media pages, a responsive email service and whether the provider’s contact number is difficult to find.

Something that could offer clarification is Canstar Blue’s annual electricity providers ratings. Companies across New South Wales, Victoria, South Australia and South East Queensland are rated by their customers on a range of factors, including customer service. If great customer service is a priority, factor this in when choosing a new electricity provider.

3. Renewable energy

Picking an energy provider can also depend on your interest in renewable energy. Some electricity providers are heavily invested in renewable energy assets rather than coal-fired power stations and offer green options, either included or as an add-on.

4. Simplicity

Understanding electricity providers and their competitive prices and offers can be confusing. Some energy providers offer conditional discounts that require you to pay on time or via direct debit. Others may offer large discounts off the bill upfront, but charge high usage or supply rates (or both) – so you may get a lower overall price on an undiscounted plan with better rates.

Introduction of the reference price – or default tariff – has allowed energy customers a simplistic approach by moving away from discounts and focusing on competitive, transparent prices. Doing so has meant that customers can easily understand and compare energy plans and avoid missing out on a discount.

5. Helpful tools

As the energy industry becomes more innovative, some retailers are focusing their efforts on creating insightful, user-friendly tools that help customers save money. One of these innovative tools are energy apps that allow customers to monitor their energy usage in real time.

Another tool that gives energy customers more control is the Canstar Blue comparison tool, created to help customers compare their energy provider’s prices to other offers on the market.

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