Choosing the right electricity provider for you is a big decision. It can mean the difference of hundreds of dollars each month in electricity bills. However, choosing the right provider isn’t as simple as picking the one with the best offer at the moment. There is a lot to take into consideration. You need to understand exactly what you are looking for when it comes to weighing up the different providers.
How Are You Charged For Energy
We all know that every time we switch on a light or turn on the dishwasher, we are being charged for the electricity we use to perform these actions. But how exactly does it work?
There are two different charges you need to be aware of when it comes to paying for electricity:
- Daily Supply Charge: the retailer you choose for your electricity plan will provide you with electricity for your home. They charge a fixed rate for this service, no matter how much electricity you use.
- Usage Charge: on top of this, you also have to pay for the electricity you use (which is to be expected!). This is calculated by the kilowatt-hour and will appear on your bill, so you can compare from month to month.
Choosing An Electricity Plan
Different providers will offer discounts on different plans to their customers. It’s important to understand what plan works for you and your electricity usage habits before you are drawn in by any discounts.
Here are the three types of plans you need to consider:
- Single rate: with this plan, you are charged a fixed price for your energy usage, no matter what time of day you are using.
- Time of use: with this plan, the cost of the electricity will depend on the time of day you are using it. During peak times, it will be at its most expensive, and off-peak times are the cheapest. The shoulder period lies in between these two times.
- Feed-in: if you have solar power, you will get paid in credit for any electricity you send back to the grid.
Understanding Your Electricity Bill
Your energy bill takes into account many different factors. It is important to understand each one of these when it comes to choosing the right energy plan and provider to meet your electricity needs.
Your energy is calculated on kilowatt-hours. During the height of Summer or the dead of winter, you can expect your uses to go up considerably. This will result in a more expensive bill at this time of the year.
How often are you being billed for your electricity? When you are comparing two electricity bills, it’s important to make sure you are comparing the same amount of days.
If someone from the energy company is unable to access your home to read the meter, they may just send through an estimated bill. You will then be refunded or billed more once an accurate reading is carried out.
Energy Price Fact Sheets
If you are looking to change providers, then the best place to start is by requesting an Energy Price Fact Sheet (EPFS). This will help you compare the different offers that are out there. This is the first step to help you find the best electricity company NSW. This sheet will detail the key aspects of the energy contract, so you can compare them at a glance. This is what is included in your bill:
- Unit price: this refers to the usage rate they are offering.
- Daily supply charge: this is the fixed rate you pay for access to energy.
- Fees: many energy companies require to set up sees, as well as exit fees, which add to the cost of the energy.
- Discounts and incentives: energy companies are all in competition for your business. As such, many of them will offer a range of discounts and incentives to get you to sign up.
- Length of contract: it’s important to know how long you are signed in to your contract. Often, once your contract is up, you automatically switch to a more expensive plan. Make sure you are aware of this.
- Terms & conditions.
New Energy Regulations
The good news is that new energy regulations have made it even easier for you to compare providers and ensure you are getting the best deal. In July 2019, regulatory changes were made for this exact reason. Now, it is even easier to find the best electricity prices for you.
There is now a price cap on what retailers can charge on standing offers. This price cap is known as the Default Market Offer (DMO). Retailers can still set their prices, but they can’t exceed the DMO. With these changes, most customers have changed from standing offer contracts to cheaper regulated contracts. These cheaper contracts now act as a reference price when comparing providers.
Saving Money On Your Electricity Bill
Before we dive in and take a look at how to go about finding the best provider for your needs, here are some money-saving tips to help you out. Finding the best rates can save you money each year. However, there is more you can do to cut down the costs.
1. Energy Efficient Lighting
All it takes is a simple switch of your light globes and you can start saving yourself some home. It’s surprising how much light globes can add to your electricity bill! Choosing an energy-efficient version will not only use less electricity but they last longer as well.
2. Cold Water Washes
It can be all too tempting to turn up the heat of your washing machine to combat those stains. But sometimes, all clothes need is a simple cold wash to have them looking like new. Hot water drains that electricity, so have a go at switching it up now and then.
3. Switch Off Unused Appliances
Even if you aren’t using appliances, if it is switched on at the wall, it is costing you. It essentially means that you are paying for electricity that you aren’t even using, which seems a bit of a waste. You can either switch them off at the wall once you are done, or consider purchasing a smart power board, which will stop standby electricity for you, so you don’t have to remember.
4. Close Blinds
During the hot and cool months is when we use most of our electricity. This is through efforts to heat or cool the home to keep you comfortable. Closing your blinds and shutters can help you out. If you know it is going to be a warm day, then don’t open the blinds in the morning. This will stop lots of the heat from making its way into your home, meaning you spend less on air conditioning costs to keep it cool.
5. Turn To Solar Energy
The upfront costs are worth it for the money you can save by switching to solar. You can generate your power without relying on a provider and earn credits when you send energy onto the grid. This is a great way to cut down on that power bill.
6. Dry Clothes Outside
While the convenience of the dryer can be tempting when you are strapped for time, drying your clothes on a clothes hanger can save you plenty of money. Take advantage of the great weather in Sydney and watch the savings that roll in as a result. It’s well worth it. Plus, sunlight is great at killing energy germs as well, so it’s the perfect way to protect your clothes are well.
Finding the Best Energy Provider
Understanding how you are charged and how your energy bill works is the first step. Now you can take a look at finding the right provider for you.
Firstly, be informed: know what savings are out there, and how they apply to you and your situation.
Next, get organized: take a look at your energy bill and make sure you understand how much you are being charged for what, so you can easily make comparisons.
Finally, get moving: start comparing the best retailers in your area to work out where you can save.
While you can head online and do the research yourself, there are faster options out there to save you time and give you a more comprehensive view. Econnex will help you compare rates, tariffs, and energy prices across a number of the top energy providers. By offering up some information on your current energy plan and how you use electricity in your home, you gain a great insight into the best deals on the market for your needs.
The best part? Once you have gone through your options and decided on a new provider, we will do the hard work for you. We can switch you over to a new energy provider, so you can start enjoying the cheaper costs straight away.