How to Compare Energy Plans in Australia - Complete Guide
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Compare NowHow to Compare Energy Plans in Australia
The energy market is designed to be confusing. We show you exactly what to look for so you never overpay again.
Start ComparingLoyalty is an expensive virtue in the Australian energy market. Retailers frequently offer their most aggressive, low-margin tariffs to acquire new customers, whilst leaving loyal existing customers on inflated "standing offers" or expired benefit periods. This phenomenon, known as the "lazy tax," costs Australian households millions every year. The only defence is to regularly compare and switch.
Table of Contents
1. What to Compare
Don't be seduced by big percentage discounts (e.g., "28% Off"). Retailers can artificially inflate the base rate so that even with a 28% discount, the final price is higher than a competitor's standard offer. Instead, focus on:
- Usage Rate (c/kWh): The actual price of power per kilowatt-hour.
- Supply Charge (c/day): The fixed daily rental fee for connection.
- The Reference Price Comparison: This is the golden metric. All plans must state how they compare to the government benchmark (e.g., "15% less than the Reference Price"). Always compare this percentage.
2. Understanding Tariff Types
| Tariff Type | Pros | Cons |
|---|---|---|
| Variable Rate | Usually the cheapest offers; no exit fees. | Rates can change with notice (usually once a year). |
| Fixed Rate | Price certainty for the contract term (e.g., 12 months). | Usually more expensive initially; might have exit fees (rare now). |
3. Using Comparison Tools
Online comparison engines are the fastest way to scan the market. To get an accurate result:
- Grab a recent bill: You need your exact usage figures (in kWh).
- Find your "Average Daily Usage": Enter this into the tool rather than just "Medium Household".
- Filter by preferences: Do you want GreenPower? Do you need a high Solar Feed-in Tariff?
4. Questions to Ask Retailers
Before committing, clarify:
- "Is there a connection or disconnection fee?" (Common when moving house).
- "Does the discount apply to usage AND supply charges, or just usage?"
- "What happens when the benefit period ends? Do I roll onto a default offer?"
5. Hidden Fees to Watch For
Paper Bill Fee: Many retailers charge $1.75+ for paper bills. Opt for email billing to save.
Credit Card Surcharge: paying by Visa/Mastercard can incur a 0.5% - 1% fee. Direct Debit from a bank account is usually fee-free.
6. The Switching Process
It is surprisingly easy. You do NOT need to call your old retailer to cancel. The new retailer handles the "break up" for you.
Final Takeaway
Set a calendar reminder to compare plans every 12 months. It takes 10 minutes and often saves $300-$400 AUD. That is an hourly rate of $2,400. It is worth your time. Have a look at our comparison tool today.
Compare Now7. Frequently Asked Questions
Will I lose power when I switch?
No. The electricity supply is continuous. The transfer happens administratively in the background.
Does it cost money to compare?
No, our comparison service is free for you to use. We may receive a commission from the retailer if you switch.
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