Best Electricity Plans 

There are many factors to consider when comparing electricity plans to help you find the best one for your situation. These include: 

Type of contract 

There are two different types of electricity contracts to choose from in Australia:  

• Standard contract: this plan offers the appropriate electricity price set by law in your state. While it may be slightly higher than a market contract in terms of its price, you can switch providers at any time without paying exit fees. 
• Market contract: this plan comes with special conditions, often including price discounts and sign-up credits for new customers. The discounts may be valid for the duration of the contract or just for a set period, such as the first six months. However, if you decide to switch providers during a market contract term, there are usually exit fees which apply. 

When signing up for a market electricity contract, you may have the choice between variable or fixed rates for the cost of electricity usage. Variable rates can change over time based on national market price fluctuations, while fixed rates remain the same for a specified period, providing greater cost predictability and stability. 

Overall cost of the plan 

Retailers offer plans based on the electricity reference price and average usage in your area. They also mention the percentage difference between their price and the national reference price, allowing for easy cost comparisons. For example, one plan may offer 6% less than the electricity reference price for your area, while another may be 8% less, which means the second offer will be a cheaper plan to take on. It's important to look for a plan which fits in with your budget while still offering suitable electricity services for your needs. 

Tariffs 

There are different types of tariffs which can be applied to your electricity bill: 

• Single rate tariff: this tariff charges the same rate per kilowatt-hour (kWh) regardless of the time you use the electricity. 
• Time of use tariff: this tariff has varying rates for different periods of the day, such as peak, off-peak and shoulder rates (which are in-between peak and off-peak.) Peak periods are when electricity demand is highest, while off-peak periods are when demand is lowest.  
• Controlled load tariff: this tariff is specifically designed for high-demand appliances like hot water systems, underfloor heating or pool heaters. It has a separate rate from standard electricity usage and your high-use appliance may have its own separate electricity meter. 
• Demand tariff: a demand tariff is a way of charging for electricity based on the highest amount of electricity you use within a specific period, no matter when it occurs during the day. Instead of looking at how much electricity you use overall, a demand tariff focuses on your peak level of electricity usage. It considers the maximum amount of power you need at any given time. This type of tariff is often used for businesses or other customers with fluctuating or high electricity usage. By using a demand tariff, electricity providers encourage customers to manage and reduce their highest levels of electricity usage, which helps make the electricity grid more stable and therefore efficient. 

The best tariff for you depends on your electricity usage, the timing of your energy consumption, and the types of appliances you use, in addition to any solar generation considerations if you do have solar panels. Understanding your electricity usage patterns, which can be found on your recent electricity bill, will help you choose the most suitable plan for your specific needs. 

Discount offers 

Electricity discount offers can help you save on your energy bills, with discounts provided either as a percentage or as a fixed amount. For example, you may be offered 5% off your electricity bill if you pay it on time, or you might receive a small discount for signing up for a certain plan. 

Ensure you read the terms and conditions, as some discounts may be time-limited or have specific eligibility criteria. It's important to understand which charges the discount applies to, as they may just apply to the usage portion of the bill, not the supply charge. It's also important to understand how long the discount lasts and whether it’s worth it in the long run. 

Supply charge 

The supply charge on an electricity bill is a fixed fee which is charged by the energy provider to cover the cost of supplying electricity to your property. It’s a daily charge measured in cents that remains the same regardless of the amount of electricity you use. The supply charge contributes to maintaining infrastructure, such as power lines and meters, necessary for delivering electricity to your home or business premises. 

The supply charge is separate from the usage charge (which is based on the actual amount of electricity you use). Therefore, you’ll have a supply charge even if you use no electricity, as you’re still connected to the national grid. Each provider may have a different supply charge, so it’s important to compare these to help you find the best plan. 

Fees 

Consider the fees charged by the electricity retailer you’re considering, such as: 

• Connection fees (if you’re moving to a new home) 
• Disconnection fees (if you’re moving location) 
• Credit card payments fees 
• Direct debit fees 
• Late payment fees 
• Early exit fees 
• Paper bill fees (charged for sending you paper bills as opposed to emailing you the bill) 

Comparing fees will help you identify the provider with the lowest overall fees in their billing package.