How Do Energy Discounts Work?

Are you wondering how energy discounts work on your gas or electricity bill? Find out all about energy discounts here with Savvy. 

Written by 
Savvy Editorial Team
Savvy's content writing team are professionals with a wide and diverse range of industry experience and topic knowledge. We write across a broad spectrum of finance-related topics to provide our readers with informative resources to help them learn more about a certain area or enable them to decide on which product is best for their needs with careful comparison. Meet the team behind the operation here. Visit our authors page to meet Savvy's expert writing team, committed to delivering informative and engaging content to help you make informed financial decisions.
Our authors
, updated on July 27th, 2023       

Fact checked

At Savvy, we are committed to providing accurate information. Our content undergoes a rigorous process of fact-checking before it is published. Learn more about our editorial policy.

How Do Energy Discounts Work?

Have you ever wondered how energy discounts work? Energy discounts are enticing offers from energy retailers designed to attract new customers. Understanding how they work is crucial to make sure you get the best deal possible when you switch energy providers. Being fully informed and understanding how different discounts affect the size of your energy bill will help you maximise your savings and make the most of these useful discounts. 

How do energy discounts work?

Energy discounts in Australia are special offers provided by energy retailers to help customers save money on their electricity and gas bills. These discounts come in various forms and can result in significant savings if you choose the right plan. Let's take a closer look at how energy discounts work. There are several different types of energy bill discounts available in Australia. These include: 

Percentage off the total bill:  

Some retailers offer a percentage discount on your total energy bill. So for example, if your energy bill is $100, and there is a ‘10% off’ offer available, you’ll save $10 on your bill. They apply to the bottom line total of the energy bill.  

Percentage off usage charges: 

Discounts off usage charges only reduce the amount you pay for the electricity or gas you actually use. However, the supply charge on your bill will remain the same. Therefore, these offers are less generous than the percentage off the whole bill offers. 

Conditional discounts: 

These discounts may have certain conditions attached, such as signing up for direct debit, accepting online billing or paying your bill on time. They aim to encourage behaviours that retailers want to see more of. Only by meeting these requirements will you earn the discount. 

Bundling discounts:

Some retailers provide bundling discounts if you choose to bundle your electricity and gas (or other services such as mobile phone plans, internet or insurance) with the same retailer. This can potentially lead to extra savings on all your bundled services. There are both advantages and disadvantages to putting all your eggs in one basket.  

Promotional welcome offers:  

Occasionally, retailers offer limited-time promotional welcome discounts to attract new customers. These may include sign-up bonuses (‘welcome credits’) or special rates for the first few months. Sign-up bonuses can be quite generous, for example, $150 off the total of your first bill. 

Affiliated bonus offers: 

These can include subscriptions to streaming services, pay TV channels, music streaming services, magazines or online clubs or affiliated sites. Remember that such subscriptions are only worthwhile if you actually use the subscription, or would otherwise pay for it if it wasn’t provided as a free offer.  

Loyalty rewards points: 

Some retailers offer frequent flyer points, loyalty points or reward card points for each dollar you spend on your electricity or gas bill. If you are an active member of a loyalty rewards program, such offers can be well worth considering if you want to gain extra benefits from paying your power bills.  

Understanding how energy discounts work is essential to make the most of potential savings and finding the best electricity plan for your needs.

How do I choose which energy discounts will be most useful to me?

Choosing the best energy plan involves understanding the different types of discounts on offer, and then working out how they align with your family's lifestyle and consumption habits. The most useful discount is one that doesn't require you to change your usual spending habits and offers a genuine saving that you can take immediate advantage of. 

Here’s a few questions to ask when trying to decide between different offers:  

  • Bill payment: Do you usually pay your bill on time? Are you happy to pay by direct debit? If so, percentage discounts rewarding prompt bill payment or for using a direct debit payment method are well worth considering.
  • Rewards points: Is there a customer loyalty program or reward points scheme that could benefit you in the long term? If you use a particular reward scheme often, or are saving up frequent flyer points for a specific trip you have planned, then electricity plans offering loyalty points or rewards points may be a good choice for you.
  • Bundling offers: Do you use multiple services offered by the same retailer in your area, such as gas and electricity and internet? Can you consolidate your energy and other requirements with one provider to simplify billing and potentially receive bundled discounts?
  • Subscriptions: Do you usually use a particular streaming or Pay TV service that you pay for annually? Is this favourite service being offered free with an energy plan? If so, choosing this plan could save you real money on your overall annual subscription costs.

Helpful energy guides

Natural gas

Natural Gas

Have you ever wondered where natural gas comes from? Is it the same as the gas which powers your BBQ? Find out here with...

Choosing electricity provider

How To Choose Electricity Provider

Are you wondering what factors you should consider when deciding how to choose a new electricity provider? Find out all you need to know...

Couple looking at energy bill

Fixed Rate Electricity Plans

Find out all about fixed rate electricity plans and how they compare with variable rate energy plans here with Savvy Are you tired of...

Energy Plans - Compare Energy Plans in Australia

Energy Glossary

Have you ever been baffled by complex words and phrases used in your electricity or gas plan, and want to know exactly what they...

Saving money

How To Reduce Your Electricity Bill

Find out some of the many ways you can reduce your electricity bill here with Savvy.  Reducing your electricity bill is not only beneficial...

Smart meter

What Is A Smart Meter?

Find out what is a smart meter, how they work and how they can potentially save you money with our comprehensive guide Have you...

What Is A kWh?

We all know that electricity is measured in kilowatt hours. But have you ever wondered exactly what a kWh is on your electricity bill?...

Urgent electricity connection

Urgent Electricity Connection

Do you need an urgent electricity connection to your new home? Find out how to get the power connected quickly here with Savvy We...

Compare energy plans

Whether it's electricity, gas or a solar plan you're after, Savvy can help you compare some of Australia's leading retail energy plans side-by-side. Get started here today! 


Savvy is partnered with Econnex Comparison (CIMET Sales Pty Ltd, ABN 72 620 395 726) to provide readers with a variety of energy plans to compare. We do not compare all retailers in the market, or all plans offered by all retailers. Savvy earns a commission from Econnex each time a customer buys an energy plan via our website. We don’t arrange for products to be purchased directly, as all purchases are conducted via Econnex.

Any advice presented above is general in nature and doesn’t consider your personal or business objectives, needs or finances. It’s always important to consider whether advice is suitable for you before purchasing an energy plan. For further information on the variety of energy plans compared by Econnex, or how their business works, you can visit their website.