In this article, Canstar Blue discusses ‘bill smoothing’ and how it can help to take the pressure off large annual bills. According to 2024-25 data from the Australian Energy Regulator, 175685 Australian energy customers are repaying debt, with 14.5% of electricity and 12.7% of gas customers who received help from their retailer by way of hardship programs. According to the 2024 Canstar consumer pulse report, two-thirds of Australians are pessimistic about their financial prospects for the year, meaning that more Australians are looking at ways to make ends meet.
One way to help ease bill shock and take control of electricity bills is energy bill smoothing.
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What is bill smoothing?
Bill smoothing is an option for keeping better control of your energy costs. Rather than being billed for your exact energy usage quarterly — and not knowing exactly how large or small your bill will be — bill smoothing allows you to spread out your estimated energy costs throughout the year through smaller, regular payments.
How does bill smoothing work?
Your energy provider will generally estimate your future bills based on your energy billing history from your household, or from households like yours if your history is less than 12 months. Your provider will then divide your annual estimate by your payment frequency (weekly, fortnightly or monthly) to find your recommended payment amount.
For example, if last year’s annual bill totaled $1,200, the energy provider might charge $100 each month for the next year. Keep in mind that these estimates may also take into account market price changes or other factors.
Who is eligible for bill smoothing?
Bill smoothing is usually available for all customers. However, energy retailers will typically suggest bill smoothing to those who struggle to pay bills on time. Customers might be able to access bill smoothing from the start of their contract, or could be placed on a bill smoothing program at a later time.
When it comes to avoiding bill shock, it’s best to be proactive. If you think bill smoothing could be right for you, contact your energy provider to discuss your specific requirements.
Compare energy deals
Here are some sponsored 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 energy 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 and to see other products in our database that may be available. 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.
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21% Less than reference price |
$1,435 Price/year (estimated) |
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Here are some sponsored 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 and to see other products in our database that may be available. 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.
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10% Less than VDO |
$1,304 Price/year (estimated) |
Go to Site |
Here are some sponsored deals from the retailers on our database that include a link to the retailer’s website for further details. These are products from our 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 and to see other products in our database that may be available. 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.
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9% Less than reference price |
$1,888 Price/year (estimated) |
Go to Site |
Here are some sponsored deals from the retailers on our database that include a link to the retailer’s website for further details. These are products from our 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 and to see other products in our database that may be available. 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.
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9% Less than reference price |
$2,036 Price/year (estimated) |
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AGL bill smoothing
AGL Energy allows bill smoothing on all of its energy products, giving customers the choice of weekly, fortnightly or monthly payment frequency. To be eligible for bill smoothing with AGL, customers cannot have more than $500 (GST incl.) of overdue debt with AGL on any AGL accounts and not currently be on any of AGL’s hardship programs.
AGL encourages customers to pay by direct debit, unless another payment method is approved first. AGL also allows a one month payment holiday, where customers can take a break from their bills, with the amount due smoothed over the remaining period of the 12-month term. Customers can take a month long payment holiday or four weekly breaks, individually or consecutively, over the year. According to AGL’s website, any amount paid that exceeds your actual annual energy usage can be rolled over or refunded.
AGL’s hardship program
For AGL customers who struggle to pay their bills, the retailer has a hardship program called ‘Staying Connected’ (or in Victoria, ‘Payment Support’). With this program, AGL says customers receive extra, personalised assistance that goes beyond traditional payment plans, helping them to resolve their problems and get back on track with their bills. This could involve asking customers to pay what they can afford and working with them to ensure they use power more efficiently. ‘Staying Connected’ is paramount to those customers struggling to make payments, as failure to do so could result in energy being disconnected as a final resort.
AGL customers having trouble paying their bills should contact the retailer on 131 245.
EnergyAustralia bill smoothing
EnergyAustralia‘s bill smoothing option is called ‘Regular Pay‘. It allows customers to divide their payments into smaller, more frequent installments based on estimated future charges. The amount is calculated by determining expected energy use over the term of a customer’s plan, including any outstanding balance, and then dividing this by the preferred payment frequency.
There are no setup or ongoing costs involved with Regular Pay. Customers can easily set up the feature in the EnergyAustralia MyAccount portal, or by calling 1800 171 397. EnergyAustralia will also review Regular Pay users’ accounts throughout the year to ensure they are not paying too much or too little for their energy compared to their actual usage.
EnergyAustralia’s hardship program
EnergyAustralia offers a range of options for customers needing assistance with paying energy bills, under its EnergyAssist program. Solutions offered include payment extensions, personalised installment plans and assistance with energy saving, as well as help with debt recovery and advice on accessing grants, rebates or discounts. EnergyAustralia can also put customers in touch with free financial counsellors in their area. Customers in Victoria have access to additional assistance under the Payment Difficult Framework (PDF).
EnergyAustralia customers needing assistance can contact the retailer on 1800 558 643.
Origin bill smoothing
Origin offers assistance for customers including payment plans, spend controls, service limitations, temporary plan adjustments, personalised financial agreements and the potential waiver of late fees.
Origin’s bill smoothing program involves estimating a customer’s typical energy usage and providing a quote to reflect costs across the year. The potential downside is that customers may not use as much energy as predicted, meaning they have paid for something that was not used; however, this amount will remain on your account as a credit towards your next bill. You can request a refund from Origin for any credit on your account, but this may mean your payment plan needs to be cancelled and re-instated.
Customers should note that Origin will provide further information regarding bill smoothing once an account has been opened.
Origin’s hardship program
Origin’s hardship program is called ‘Power On’. Origin says this program gives hardship customers access to information and payment-assistance options so they can get back on track with their bills. Origin will work with customers to set a payment plan solution, as an alternative to disconnecting power or beginning the normal debt collection process.
Origin customers in financial hardship should contact the retailer on 13 24 61.
Red Energy bill smoothing
Red Energy offers a bill smoothing payment plan in the form of its ‘EvenPay’ program. EvenPay can provide some certainty with flexible payment options that put the customer in control. It allows customers to pay the same amount, on time, every time for energy in installments. Red Energy says that it provides this service by estimating energy usage over the course of a year. Customers have the choice of weekly, fortnightly or monthly payment options, with payments made by direct debit.
Red Energy will review each customer’s account every six months to ensure the predicted energy usage and costs remain accurate. If not, changes can be made. Households interested in bill smoothing should contact Red Energy to discuss their eligibility for the program.
Red Energy’s hardship program
Red Energy encourages customers experiencing financial hardship to get in touch as soon as possible to discuss their options. The retailer promises that it will work with customers to make sure that whatever plan is set up is realistic and sustainable going forward. Red Energy also commits to providing energy efficiency advice to help customers better understand and manage their usage habits.
Red Energy customers having trouble paying their bills should contact the retailer on 131 806.
Other energy providers’ bill smoothing
Several other energy retailers offer similar bill smoothing plans, though some refer to them by different names and may undertake a credit check before a new customer can sign up. If your energy provider isn’t listed above, contact them for more information on their electricity or gas bill smoothing options.
Compare electricity plans
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.
Is bill smoothing worth it?
Bill smoothing can be helpful as it makes energy costs more predictable and helps to reduce the impact of seasonal power usage, such as heaters in winter or air conditioners in summer. Knowing exactly what needs to be paid for electricity from one billing period to the next could help households better manage their budgets and reduce the stress that comes with large bills.
While bill smoothing helps to spread out the annual cost of energy, it could also mean paying more at certain times throughout the year. However, in return customers will have lower bills at times of the year when they would normally expect to pay the most.
One thing to be wary of is if energy usage is greater than anticipated, customers may be left with a large ‘settlement’ bill at the end of the year. This is to account for the additional costs incurred. However, if annual energy usage was less than anticipated, account holders will generally be credited the difference on their next bill. Note that different retailers may handle bill credit in different ways, so contact your provider for specific information.
It’s normal for energy retailers to send out regular bill smoothing ‘review’ emails to their customers, to ensure usage remains consistent with annual predictions. Expect to receive an annual review notice at the end of the 12-month period to discuss a bill smoothing plan for the next year.
What is a payment holiday?
Many retailers also allow bill ‘payment holidays’ for customers on bill smoothing plans. This means taking a short break from paying energy bills (usually only one billing period at a time), in order to catch up on other expenses. Taking a payment holiday means the unpaid balance is simply absorbed, or ‘smoothed’, into the remainder of a customer’s annual bills — so you’ll skip one payment, but pay the balance over the rest of the year’s bills.
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Bill smoothing tips
Bill smoothing can help customers manage their energy costs efficiently, especially around summer and winter. However, usage and supply costs can vary dramatically between retailers, so it’s important to thoroughly and regularly compare energy offers.
Bill smoothing plans could result in a final settlement figure at the end of the agreement, so pay close attention to energy usage over the course of the year and flag any concerns with your retailer immediately.
Some easy tips to make bill smoothing even easier:
- Study your household’s energy usage habits.
- Ensure you are on the best tariff for your energy use.
- Check our other energy plans in your area and switch if there’s a cheaper deal.
- Install your energy provider’s app (if they have one).
- Nominate a set amount to pay either weekly, fortnightly or monthly.
- Match your payments to each pay cycle.
Original reporting by Dean Heckscher
Image Source: Miha Creative/Shutterstock.com
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