The Benefits of Shopping Around for Electricity Plans in Australia

Market Structure and Participants

There are many players that make up the market structure of the Australian electricity market. There are providers who generate electricity which they create to inject into the wholesale market. There are wholesalers—generators and retailers who buy power to resell—in this case, reselling power to ultimate consumers, be they residential end-users or large commercial facilities. There are the distributor who transports electricity from the generation site to the ultimate consumer.

Ultimately, all players need the infrastructure—the wires, the poles, the meters, and other components—to guarantee adequate performance for reliability. Perhaps the largest adjustment for consumer experience is market deregulation.The Australian electricity industry is no longer regulated in terms of which retailer one gets. With no guaranteed retailer assigned to one's household, the process of switching has prompted retailers' competition to gain clients. Thus, there are many more diversified electricity options that exist. For instance, consumers are offered fixed vs. variable rate plans.

Fixed rate plans keep consumers locked into a price for a set term; variable rate plans give consumers the ability to adjust pricing based on what's happening in the market (i.e., a drop in market pricing can save people on their electricity bills).Therefore, not only will one find an electricity plan suited to their individual usage needs from comparing options, but also, from comparing options, new customer bonuses and incentives exist for certain providers to lure residents to choose them.

The more this occurs, the more providers learn—via legitimate business practices and affordable pricing—how to grow a bigger customer base.

Ultimately, knowing how the Australian electricity market works allows consumers to understand how to make the options process work for them and make better choices for even more energy savings. With thousands of energy companies operating in Australia, it's not unusual for people to compare and choose electricity plans on their own throughout the country—only to find them saving 25%, 50%, or even $100 on their monthly energy bill—with additional credits that they can't possibly refuse.

This is because Australian energy companies charge all different types of rates and fees based on several factors inc. location, usage, connection type—so consistently comparing electricity plans shows people what better fits their financial needs. Arguably the most enticing reason to shop all and any electricity plans is savings. For example, a recent study shows that approximately $300 per year is saved when individuals know and switch. This number implies that not necessarily just the lowest base rate needs to be sought after but the ATC—average total cost—of all non-billable fees, the stipulations to receive discounts, and the extensive standard deviations of specialisations.

Therefore, after the initial research to find the best fit, it's all savings from there on out year after year for a one-time effort at the beginning. The conception that switching is so difficult is flawed. There are many resources online to make the transition easy. There are even sites where people can gauge their personal intake and have a competitive set made for them instead of having to guess what would be best for pricing.

Pricing

Pricing schemes change and incentive offers pop up all of the time. Thus, assessing energy need as opposed to guessing and getting stuck in a plan for the next three years is the best way to get one foot in the door for potential savings.

How can one avoid being penalised for ongoing savings? Supply fees lower on plans, temporary incentives, exit fees lower than what could be saved by switching. Thus, assessing electricity plans over time saves money and takes control over one's finances. Enhanced Customer Service and Perks Electricity comparison facilitates a better electricity experience in Australia. If one provider offers better customer service opportunities than another, electricity comparison gives consumers a better chance to find those who focus on customer service.

An electricity comparison cultivates businesses that operate in a competitive spirit, and competitive electricity companies are more likely to upgrade their support teams to ensure customers' questions and needs are answered quickly and effectively. In addition, with so many other packages available, people can personalise what they want in accordance with their value system and needs. For instance, many electricity providers offer green energy packages so those who need to be more environmentally conscious can choose these alternatives and receive electricity from wind and solar resources.

This benefits the earth and, potentially, the wallet as well if green energy results in tax incentives. In addition, many providers have loyalty programs that discount and add bonus services for those who remain loyal for the long game. Many of these bonuses are worth the time and effort for a long-term play to secure customer loyalty and a more effective energy experience. Thus, while shopping for rates, it's beneficial to ask about such bonuses because cash back on payments or referral credits can easily go unnoticed if one is just shopping for the rate.

Other considerations are the technology that accompanies the electric packages. For instance, smart meters, energy monitoring devices, etc. provide consumers with real-time feedback of consumption. These innovations not only foster efficient consumption, but also the chance to avoid excessive consumption and therefore reduce monthly bills overall. So, excellent customer service, incentives, and technologies make the experience of searching for electricity as good as it gets. Another way to guarantee you're making the right decision is via customer reviews. Evaluating other customers and their experiences indicates whether service efficacy or price is more important.

If customers seem to appreciate service more than a price and service comparison, then an electricity comparer should go with a provider that publicly promotes the efficacy of its service for customer satisfaction. With access to comparison shopping for electricity, you'll pay a lower rate and enjoy better service than ever because you know that a better situation awaits you.

This new phenomenon exists due to energy companies competing for your business. The best and easiest way to learn how to comparison shop for electricity in Australia is via an online electricity comparison shopping service. These services allow you to instantly compare electricity plans in a side-by-side fashion for pricing, contractual obligations, and customer reviews. Just be sure when utilising electric comparison shopping services that you adjust the filters for your expected use and personal household budget to yield the best results.

Another method of successful electricity shopping includes understanding contracts. Each provider has different contractual obligations, and many contractual obligations are linked to pricing, pricing surcharges, penalty fees for using energy during peak hours, and cancellation fees. Thus, by understanding the contractual landmines, not only do people spare unexpected fees, but they're also inclined to select the best plan for their electricity needs. For example, the duration of the contract and whether pricing goes up after three months are considerations that should be assessed to avoid being trapped in a bad situation down the road.

In order to keep the most advantageous plan, it appears that electricity plan renewal should happen frequently. Professionals suggest that at least once a year, your electricity options should be reevaluated—or when something significant occurs that changes the need. Significant occurrences include changing one's residence (needing a different provider), renting versus owning, major life changes, major appliances, and major people in the home.

Just like the option to transfer is advantageous, so too is knowing when to transfer to something else—if something less expensive comes along with the same coverage OR better contracts (or flexibility).

The "power" to reduce your electric bill is by becoming an educated consumer. When the consumer takes the initiative to research and seek out different electrical supply options, the consumer not only feels "empowered," but the playing field becomes more competitive, too. All you have to do is look.

Compare energy plans today

Use the free comparison tool at EnergyPlans.com.au to review energy providers and lock in a better deal before prices rise.

No pressure. No gimmicks. Just real savings.