Guides & Resources

How to Compare Electricity Prices?

Just like with any bill you don’t want to be paying more for electricity than you need to, but this can easily happen if you don’t shop around for a better deal.

To help you compare electricity prices and find the best deal for you, we’ve put together this guide that shows you how to understand electricity pricing and what to look for in an energy provider.

Understanding Your Energy Bill

For many people this is where the problem is – not understanding exactly what they are paying for. This leads to much confusion. To break it down for you here is our explanation in understanding your electricity bill in simple language:

  • You are charged a daily supply charge which is basically the cost of getting electricity to your residence (even if you don’t use any) and appears on your bill as a total amount, or as cents per day.
  • The reason why you still need to pay a daily supply charge even if you’re not using any electricity is because you are required to pay by law to pay for the supply and to help pay for the actual electricity towers.
  • This daily supply charge can change according to the time of day you use your electricity and the type of contract you have.
  • The price of electricity is higher during ‘peak times’ usually on weekday afternoons and evenings, when the demand for electricity is highest.
  • The daily supply charge can also change depending on your location, as each state and territory makes its own decisions about the costs involved in energy supply. Speak to your energy provider to find out more information.

Questions to Ask Before Signing up to an Electricity Deal

Once you have at least an understanding of how electricity pricing works it’s now time to ask the following questions to your electricity provider. These questions should also be be applied to your gas:

  • Are you offering me the plan with the lowest usage charges?
  • Is this plan part of a contract? How long is it? Are there any exit fees if I leave? Do you offer discounts?
  • How much money will I save per year with this plan?
  • What are your late payment fees?
  • How does your plan compare to the Victorian Default Offer (VDO)?
  • What other perks and incentives can you offer me?

Extra Things to Consider to Compare Electricity Pricing

Take into consideration the following factors when comparing electricity pricing:

  • Energy providers are different so don’t expect to be charged the same price for the same deal or offer. Shop around!
  • Know that from 2019 the Default Market Offer (DMO) was introduced in NSW, SA and south-east Queensland. The Victorian Default Offer (VDO) was introduced in Victoria too. This is to offer you a fair price cap on the maximum amount you can be charged for electricity. If you’re not receiving a market offer, which has cheaper rates than the DMO or VDO, then you could be paying more.
  • Understand that switching electricity providers often comes with a cancellation fee so please ensure you understand your terms and conditions.
  • Always read your contract from start to finish. We know it’s not exactly bedtime reading but it’s important to understand your contract. This will save you much confusion down the line.
  • Use our comparison service to do all the work for you in comparing electricity pricing to find the best price and deal for you.

How our Electricity Comparison Service Works

Cheap Bills compares electricity plans from providers across Australia to help you find the best deal for your budget and overall usage needs.

Our electricity comparison service is FREE to use and our dedicated and friendly team is on standby to help you Monday to Friday 10am to 8pm. Contact Cheap Bills for further assistance with your electricity pricing.

Related Post: Are Electricity Prices Going Up in 2023

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