With sweeping changes across the retail energy market over the past few years, you may have noticed a few things different about your power plan — you’ll find many energy retailers have now rebranded their sign-up offers and perks as ‘bill credits’. Energy bill credits have become popular tool used by energy retailers to provide bill relief, and encourage loyalty and referrals.
But what exactly is a bill credit, and should you only opt for an energy plan with credit included? Read on to find out.
What is an energy bill credit?
An energy bill credit is similar to a conditional discount. It’s essentially an amount that can be deducted from a customer’s power bill, meaning you won’t need to pay the total bill once the credit is applied. Bill credits can either be an ongoing incentive, or a once-off feature on your plan.
Customers receiving bill credits will generally need to satisfy their energy provider’s conditions, such as paying bills on time or via direct debit. Bill credits may also be offered for customer loyalty, or as a special introductory offer for new sign-ups. You may also receive a bill credit for referring a friend to your energy provider.
It’s important to read the description of your electricity plan carefully to ensure you’re entitled to a credit off your energy bill, and to make sure you meet any eligibility conditions. You should be aware that sometimes a bill credit could be hiding increased usage and supply charges, meaning the base rates you pay for electricity may be higher than other market offers.
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Here are some of the cheapest published deals from the retailers on our database that include a link to the retailer’s website for further details. These are 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 3900kWh/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 some of the cheapest published deals from the retailers on our database that include a link to the retailer’s website for further details. These are products from referral partners†. These costs are based on the Citipower network in Melbourne but prices may vary depending on your 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 some of the cheapest published deals from the retailers on our database that include a link to the retailer’s website for further details. These are 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 4600kWh/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 some of the cheapest published deals from the retailers on our database that include a link to the retailer’s website for further details. These are 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 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.
How do I know if my energy plan includes a bill credit?
If you’re shopping around for a new electricity or gas plan, a retailer will generally display and bill credits in the plan’s description. You can also find details in the plan’s energy price fact sheet, usually under ‘Special Offers’.
If a bill credit applies on your existing plan, you should see it listed on your bill under ‘Credits’ in the ‘New charges and credits’ section. Below is an example bill from AGL highlighting where a bill credit is located:
What is an anniversary bill credit?
An anniversary credit is a type of conditional discount that rewards customers for their loyalty. Anniversary credits will usually apply to a bill where the customer remains on a plan for the nominated benefit period (for example, 12 months) despite being free to leave at any time. These credits generally aren’t offered on plans where customers are locked in, so operate as an incentive for customers to stick with their provider.
What about Government energy bill credits and rebates?
If you’ve received an energy bill credit, energy rebate or relief payment from the state or Federal Government, this may also appear on your bill as a credit. While rebates are funded by the Government, they are applied to your account by your electricity or gas retailer, so you’ll usually see them represented on your bill. You can find out more in our guide to energy bill relief.
Should I look for a plan with electricity bill credits?
As the energy landscape continues to transform, it’s difficult to tell just yet if these bill credits will provide more savings than discounts. However, it is safe to say that bill credits and discounts alike aren’t the only features of an energy plan worth looking into — you’ll also need to check a plan’s usage and supply rates before you decide.
To ensure you’re getting a great deal, it’s best to compare prices and offers from a range of different energy providers. If it’s time to say goodbye to your current plan or you’re curious to know what else is out there, jump onto our comparison tool where you can compare products side by side at zero cost.
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