In this article, Canstar Blue discusses some of the common misconceptions about switching energy providers that could be preventing you from getting a much better deal. The below guide highlights seven of the most common misconceptions around switching energy providers and what you can do to avoid them.
Seven energy switching myths:
- Myth 1: Switching suppliers means you’ll need a new meter installed
- Myth 2: Your power will be cut off while you switch
- Myth 3: You can’t switch suppliers if you’re on an energy contract
- Myth 4: Renters can’t switch energy plans without landlord permission
- Myth 5: All energy companies are the same
- Myth 6: You need to cancel with your current energy supplier before switching
- Myth 7: Switching energy providers is too much hassle
Compare energy prices
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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11% Less than reference price |
$1,614 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 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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4% Less than reference price |
$1,990 Price/year (estimated) |
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Myth 1: Switching suppliers means you’ll need a new meter installed
Your electricity comes straight from the national energy grid, no matter which provider sends you the bills – so you won’t need a new meter or any other equipment if you switch. The only person who will visit your property is the meter reader to take a final reading so your old supplier can send you a final bill (unless you have a smart meter or are using an estimated bill). Some energy retailers offer to upgrade your old meter if you switch to them, in which case someone would need to drop by. It’s worth saying that smart meters are gradually being rolled out across the country anyway.
Myth 2: Your power will be cut off while you switch
Switching energy providers doesn’t mean any significant change to your power supply. At no point will your electricity be disconnected. Your new retailer will simply take over your account, charge you its own rates and send you the bills. Your home will still be powered in the same way, but be aware that any changes in your tariff structure could mean you are charged for your power in a different way to before. However, any big changes should be clearly explained to you when you switch, and you would have to agree to the changes first anyway.
Myth 3: You can’t switch suppliers if you’re on an energy contract
While all energy plans are technically a ‘contract’ (i.e. they come with various terms and conditions) no one will ever be locked into a contract they cannot simply quit. The worst case scenario is that you’ll have to pay an exit fee to cancel the contract – but this is usually only around $20. If you’re switching to a better deal, this cost will quickly be recovered. The good news is that exit fees have become almost non-existent in recent times, so most of the time switching energy plans won’t cost a thing.
However, there is one other thing you should be aware of when it comes quitting your energy contract. If you’re on a plan that gives you a conditional discount, some retailers will not honour it on your final bill before switching. So if you’re getting a huge 20% discount from your old retailer, you can expect a much higher final bill. It’s a bit sneaky from the retailers, but a good example of why you need to read the small print before signing up. Fortunately not all energy retailers do this, but for some it seems to be a deterrent to leave early.
Compare cheap electricity deals
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.
Myth 4: Renters can’t switch energy plans without landlord permission
Renting a home doesn’t mean that you will be obliged to remain with the property owner’s choice of energy provider. If it’s your name on the account and you pay the bills, you have every right to switch. The only exceptions could be:
- If your rental agreement states that you cannot switch providers (e.g. because the landlord pays the bills) or;
- Your home is part of an embedded network where all of the properties (e.g. in the apartment block) are supplied by the same company.
It’s important to read your rental agreement carefully and ask lots of questions before signing it. Allowing your landlord to pay the utility bills, or being part of an embedded network, can have its benefits. But make sure you understand what you’re committing to first.
Myth 5: All energy companies are the same
Electricity usage rates vary depending on the type of tariff you’re on. Over the course of a year, being on a more expensive deal could end up with you paying hundreds more than necessary.
Energy retailers can also differ significantly with regards to customer service support, as well as other benefits they offer. Some provide 24/7 customer support, online chat functionality, GreenPower options, multiple billings, etc, but others may not. This is why it’s important to compare not just the tariff type and usage and supply rates offered by a provider, but also the extras that may be available on each plan.
Myth 6: You need to cancel with your current energy supplier before switching
You don’t need to call your current energy company ahead of switching to a new and better deal, which means you can avoid any awkward phone calls or attempts to convince you to stay. Your energy supplier also cannot refuse to let you switch, even if you owe money on your account – however, you may be legally pursued for any remaining debt if you’re behind on payments.
Myth 7: Switching energy providers is too much hassle
Switching energy providers doesn’t have to be a hassle. However, it’s really important to do your research first, which means comparing different providers, plans and price fact sheets to ensure you know everything about your prospective energy deal, including things like conditional discounts, fees and charges. Once you’ve made up your mind, it only takes a few minutes to make the switch. Recent switching rules have made it that switching energy accounts from one provider to another only takes around 48 hours, meaning you could be on your new deal within two business days.
Image Credit: Black_Kira/Shutterstock.com
Switching energy provider FAQs
How do I know if I’ve switched energy providers?
When you switch energy providers, your new retailer will typically email you to confirm and welcome you onboard straight away. They could then send out a letter in the mail – or follow up with further emails – outlining all the details of your new plan with its terms and conditions etc. If you don’t hear from your new provider within a few days, it may be worth a call to make sure they have received your request.
Do I need to cancel with my old provider after I switch?
No. Your new provider takes care of informing your old supplier that you’ve had enough of them, and that they will be taking over the supply for your address. However, your old provider could get in touch to ask why you have switched and potentially offer you a cheaper deal to stay with them.
Can I change my mind after I switch providers?
Yes. When you set the wheels in motion to switch energy providers, you have at least 10 business days to change your mind. This is known as a ‘cooling off’ period. Cancelling your new contract within this time period means you will not pay any exit fees.
Why have I been sent a bill from my old provider after switching?
Unfortunately, if you still have outstanding payments on your electricity account with your old provider when you switch, you will still need to pay those off. You may also find that your old retailer has re-calculated your final bill after switching, especially if you switched using an estimated bill, so this could be the final payment required from them that’s made its way through.
If you find you are still being sent bills after you’ve paid your outstanding payments, it’s best to get in contact with your old provider to see if there has been an error.
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