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Compare Electricity Prices NSW: How to switch and save

The New South Wales electricity market is brimming with retailers offering competitive plans and attractive rewards. Finding the one that best suits your home or business can lead to some big savings.

Read on to find out more about New South Wales energy and make sure you’re getting the best deal on your bill.

Prefer to speak to someone? Call our Australian team now on 1300 786 045

Comparing energy prices takes a lot of expert knowledge and understanding. In this guide, we’re going to make you the experts. We will explain how to calculate and compare power prices NSW, which costs you can influence, and of course, most importantly, how you can find a cheaper deal for your home.

If you are looking for the best electricity deals NSW then you’ve come to the right place! In a market flooded with options, finding the cheapest and most suitable electricity provider can be a daunting task. That’s where we step in. We’re here to help you navigate the complex world of electricity plans, so you can make an informed decision and keep more money in your pocket.

Compare Electricity NSW

When it comes to cheap electricity NSW, knowledge is power. Our goal is to empower you with the information you need to compare electricity prices, understand the factors influencing your energy costs, and ultimately find the best deal for your home or business. With a plethora of electricity providers and plans available, it’s crucial to explore your options.

Our carefully selected panel of electricity providers for your electricity comparison NSW, including EnergyAustralia, ActewAGL, Covau, Tango Energy, Blue NRG, and Energy Locals, can offer you great deals. We’ll analyse their plans, so you don’t have to and find you the cheapest electricity provider NSW from the mix. We’re dedicated to ensuring that you get the best value for your money and that your specific energy needs are met.

To give you the full picture, this page will help you discover the ins and outs of the New South Wales energy market, including the impact of electricity generation, distribution, and retailing on your bills. Our detailed guides will provide you with the expert knowledge you need to find the best electricity deals, compare energy plans, and ultimately secure the cheapest electricity provider NSW. Whether you’re a residential customer or a business owner, we’re here to simplify the process and help you make the most cost-effective choice for your energy needs.

Ready to embark on your journey to find the best electricity provider NSW? Read on to uncover the secrets to effectively compare energy plans NSW.

How Do I Find The Best Sydney Electricity Provider For My Home?

When you compare with CheapBills, we will look at plans from our carefully selected panel of NSW electricity providers to find you cheap electricity NSW from a supplier you can trust..

Our New South Wales and Sydney electricity providers are:

Keep reading to find out all the expert knowledge our team uses to compare energy plans NSW and find you a great deal.

How Does Electricity Reach My Home?

Electricity takes a long journey to reach your home, from a power station or renewable source, via a complex network of wires and poles, all the way to your power points. The three key players in this journey are the electricity generator, the distribution networks and the energy retailers. Each of these industries incurs a cost, which contributes to the amount you pay. The role of each of these industries, and how they affect your electricity bills, is explained below.
NSW is powered primarily by coal, with its five coal-fired power stations accounting for approximately 76% of the state’s electricity.

The lifespan of a power station is around 50 years, and all five NSW stations are reaching the end of their technical life. Closure dates have been scheduled for each plant between 2023 and 2043, starting in April 2023 with Liddell Power Station, then Vales Point B in 2029, Eraring in 2031, Bayswater in 2035 and Mount Piper in 2043.

This coincides with Australia’s Renewable Energy Target (RET) commitments, which aim to transition the country’s power to renewable sources. AGL’s Liddel site will be converted to a low-carbon industrial energy hub, supporting the RET, increasing energy reliability and stimulating regional economic development.

About 20% of NSW’s electricity is generated through renewable sources, including hydro, solar and wind farms. The state is committed to playing its part in the RET with a $24 billion investment proposed for renewables. This includes 81 solar farms, 15 wind farms and the Snowy 2.0 Stage 2 Main Works. Once electricity is generated, it is the role of the Australian Energy Market Operator (AEMO) to control the amount of electricity that is dispatched into the National Electricity Market (NEM) and when.

Fluctuations in demand and the cost of the primary source affect the cost of the wholesale electricity that is supplied to the NEM, which is, in turn, passed on to customers.
Now the electricity is available from the generators, a complex network of transmission and distribution lines transport it to your home or business. NSW is part of the National Electricity Market (NEM), which is the wholesale market for generators and retailers to trade. The NEM is made up of about 40,000km of transmission lines and cables to transport electricity around the country.

In NSW, the transmission system is owned and operated by TransGrid. Alongside TransGrid, three electricity distributors take the power from the high voltage transmission lines through a low voltage distribution network into your home. Each distributor services a different area.

  • Endeavour Energy – Southern and western metropolitan Sydney and surrounds including the Blue Mountains and the Illawarra
  • Essential Energy – Country and regional NSW (plus southern regional QLD)
  • Ausgrid – Inner, northern and eastern metropolitan Sydney and surrounds
The cost of running the distribution network is passed on to electricity retailers, who cover the cost with a ‘distribution’ charge on your quarterly electricity bill.

The price of your distribution charge will depend on the network area you live in. Consumers who live further away from the generator will incur higher costs to account for the extra difficulty involved in transporting electricity to that area.

The role of the electricity retailer is to manage the customer accounts and payments in order to supply electricity from the distribution network to homes and businesses. Retailers will set the cost of electricity high enough to cover the expenses involved in generating and distributing electricity in your area, plus their own retail costs. For this reason, larger retailers are often the best energy provider NSW because they can control their costs more effectively.

There are over 30 electricity retailers in NSW, each with a range of rates and plans to suit different energy needs in different areas. You can read more about New South Wales’s energy retailers here or call 1300 786 045 to take advantage of our free NSW Energy Compare service.

How Is The NSW Electricity Price Determined?

As you’ve just found out, the price you pay on your energy bill is made up of the costs of generating, distributing and selling electricity. Several other factors also affect the cost of electricity, which are discussed below to help you find the best electricity provider NSW for your needs.

The wholesale cost of generating electricity makes up about 26 per cent of an average electricity bill. When the cost of wholesale electricity rises, the price is passed onto consumers so that energy retailers can remain profitable.

There are many reasons that wholesale electricity prices can rise, pushing up the NSW electricity prices per kWh:

    • Coal prices – with about 76% of the state’s electricity coming from coal-fired power stations, an increase in the price of coal can have a big impact on the cost of generating electricity. Unfortunately, coal prices are volatile. Recent impacts on the market include global distribution issues caused by COVID-19, local distribution issues caused by bushfires and flooding, and a supply shortage caused by sanctions placed on Russian coal following the war in Ukraine. 
    • Transition to renewables – although renewables are a more economic way to generate electricity, the transition from fossil fuels to renewables is causing a volatile electricity market.
      Several coal-fired power stations in NSW have closed ahead of schedule, leaving a supply deficit in the market, as renewables are not yet established enough to fill the gap.

      An example is the closure of Victoria’s Hazelwood Power Station in 2017, which saw wholesale prices rise 85% compared to 2016. In NSW, Origin’s Eraring Power Station, the biggest coal-fired power station in the country, will close in 2025, seven years ahead of schedule, with the remaining four stations also scheduled to close by 2043.

      These closures pose a risk to the capacity of the network to supply adequate power if enough renewable sources haven’t been established. These shortages could lead to skyrocketing electricity prices.

    • Network congestion – the transmission network in NSW was originally designed to connect to several large scale electricity generators. In recent years, these requirements have changed, as many small-scale renewable energy sources have connected to the grid.

      These generators, which are often located in remote areas to optimise solar or wind production, have new transmission needs, which is putting strain on the current network. This congestion leads to increased expenses to maintain and expand the network, which causes a rise in the cost of wholesale electricity.

    • Changes in demand – along with an increased demand for power following warm temperatures, heatwaves and return-to-work after the lockdowns, there has also been a shift in the way consumers manage their energy needs.

      Many homes and businesses are now small scale electricity suppliers, requiring the grid to move away from the traditional model of a few large generators to a more complex two-way system.
      These changes have caused local network challenges while the system transitions, which in turn leads to increased expenses that are passed on to customers.

Network costs account for up to 46% of your bill and vary depending on the transmission network costs. Customers living in rural areas pay more for distribution than metro customers, due to the increased cost of transporting electricity and maintaining the infrastructure including poles and wires.

In New South Wales, there are three distribution network areas. Customers in each different area pay a different rate for their electricity.

The cheaper distribution network is Ausgrid, powering the Sydney metropolitan area. Customers in the Ausgrid area pay up to $500 less than customers in the most expensive Essential Energy distribution zones of regional and country NSW.

Unfortunately, your distributor costs are determined by the area you live in, so NSW customers cannot shop around for distributors in the same way you can for retailers.

During times of peak electricity consumption, consumers pay more for their electricity usage. In NSW, peak demand periods are between 2 pm and 8 pm on weekdays in summer and 5 pm to 9 pm in winter. In recent years peak demand has grown due to population growth and an increase in technological use.

The amount you pay for your on-peak and off-peak electricity usage depends on the rate agreed in your plan. There are three types of Time of Use (ToU) tariffs:

  • Single rate – the cost of electricity is the same at all times of the day and night, and every season.
  • Time of Use – the cost of electricity is lower during off-peak periods. A smart meter is used to track how much electricity is used during different times.
  • Controlled load – the cost of electricity is lower for certain high-usage appliances, such as hot water systems, swimming pools or underfloor heating. These appliances are tracked with a separate meter and are usually used during off-peak times.

The DMO is part of the Federal Government’s national energy legislation and rules that regulate the electricity industry. It was introduced in 2018, after a report by the ACCC found that the electricity market was disadvantageous to customers, with plans that were too complicated, making it too hard to compare electricity rates NSW.

The same report found that loyal customers were being exploited with non-discounted standing offers that were significantly more expensive than other plans, leaving them hundreds of dollars out of pocket each year. 

The DMO is an electricity reference price that is set by the Australian Energy Regulator (AER), rather than by retailers. It addresses both of the issues in order to protect residential and small business customers from price gouging and unaffordable energy prices. Retailers are now required to show all of their discounted plans as a percentage of the DMO price, to allow customers to clearly and fairly compare electricity providers NSW. The DMO is also the maximum price that retailers can charge for customers on their standing offer. 

The DMO price is reviewed every year, and an increase in the DMO will lead to an increase in your electricity bill.

You can read all about the DMO here.

What Are The Different Charges On My Energy Bill?

As you can see, there are a lot of variables that go into the price you pay for your energy bill. A typical bill from your retailer will be 46% network charges, 26% wholesale generation, 18% retail, 7% ‘other costs’ such as renewable energy surcharges and 3% metering.

For transparency, electricity suppliers NSW will break down the four different charges on your bill. Each of these charges is explained below. below.

Consumption charge:

This is the amount of electricity you have used multiplied by the rate per kWh. There may be two rates shown on your bill if you have a ToU or controlled load tariff.

Demand charge:

This is the amount of electricity used during on-peak periods that is charged at a higher rate if you are not on a single rate tariff. If you notice most of your electricity is being used during on-peak times, try to alter your habits to take advantage of off-peak rates.

Supply Charge:

This is your portion of the cost that the retailer pays to the distributor to maintain the electricity transmission lines and distribution network, including poles and wires. It also includes the retailer’s fixed costs such as account maintenance and meter readings.

Distributor Charge:

This is the amount that will be charged if the distributor needs to carry out activity beyond the regular supply of energy, such as same-day connections or emergency works.

How Is The NSW Electricity Price Determined?

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Compare Electricity Plans in NSW

Now that you know all the aspects of your electricity bill that you can’t control, we can move on to the parts that you can. 

Electricity retailers in NSW offer a variety of discounted rates and special offers that can lead to hundreds of dollars back in your pocket each year. Read on to find out how you can save on your bills.

New South Wales Electricity Rates and Discounts

If you aren’t actively engaged in the electricity market, then you are probably paying the price set by the DMO. There are many ways to access the cheap electricity NSW by comparing rates and discounts from your retailer and save hundreds of dollars in the process. 

  • Market offers

Although each retailer in NSW is capped by the DMO, they have free reign to offer discounted rates below the DMO to attract customers to their service. This means there are significant savings to be found if you shop around. 

As well as discounted rates, the market offers often include additional benefits such as guaranteed discounts, off-peak rates or high solar feed-in tariffs. Some plans include bonuses for special-use items, such as electric vehicles or Virtual Power Plants (VPPs).

Your unique needs and circumstances will determine which market offer is the best value for your home or business. But stay alert! Many offers are for a limited time or have certain conditions attached, so make sure you find one offering true value in the long term.

  • Discounts and credits

More savings can be accessed by finding a plan that rewards you for things like paying on time, using paperless bills and direct debit or bundling other services. These rewards are often in the form of a one-off credit of up or could be a discount on each quarterly bill.

Comparing market offers, discounts and credits can quickly become a bit overwhelming. To protect consumers from being misled by the chaos, retailers in NSW are now required to show their discounted plans as a percentage of the DMO to make it easier to compare. 

Once you’ve found a plan that suits your needs, make sure you understand the terms and conditions of your offer. Most offers will expire after 12 months, at which point you will automatically be transferred to the DMO unless you sign up for a new market offer. Comparing your bill every 12 months is the only way to make sure you continue to get the best deal on the market.

  • Other incentives and rewards

With so much competition in the market, retailers are going all out to win your business. Some of the common incentives and rewards you will find include sign-up credits and offers from partner companies included in your plan. For example, Alinta Energy has a plan specifically for sports lovers, with a free 12-month Kayo subscription included, or for foodies, 1st Energy offers a plan that includes Menulog vouchers.

You will also find a range of rewards shops available with companies, including Origin, Alinta and AGL. These work by giving you points every time you pay your bill, which can be exchanged in the rewards shops for goods and services from their partners. Rewards include movie vouchers, theme park tickets, and travel and dining experiences.

New South Wales Electricity Concessions

In NSW there are government concessions and rebates available for families, seniors and low-income households to assist with the cost of electricity and gas. These rebates are in addition to any discounts or offers you receive from your retailer. To find out if you are eligible or for more information about your entitlements, visit Service NSW.

Switch Electricity Providers in New South Wales

There are a few important steps to take to make sure your electricity comparison NSW is a success. Firstly, you need to assess your current financial situation so that you are aware of your budget. Consider everything you are financially committed to such as home loans, credit cards, life insurance, health insurance and any other financial products.

You also need to review and understand your energy usage habits to find a deal that is suited to your needs. This includes what time of day you use the most power, the size of your household and if you have special energy needs such as an electric vehicle or swimming pool. 

Our comparison service can take you through these steps and help you compare electricity plans to find the cheap electricity provider NSW from our panel. 

How do I switch?

The easiest way to make the switch is to use a NSW energy compare platform like CheapBills. With one easy phone call, we can help you understand all the variables involved in finding the best energy provider NSW from our panel of providers. Our team of experts will take the time to understand your energy needs and find you the cheaper deals from our panel of providers, saving you hours of phone calls and internet research.

Once we have matched you with a plan you are happy with, we will also take care of the switch for you, so all you have to do is sit back and start saving!

For the best electricity deals NSW from our panel of leading energy providers, call CheapBills on 1300 786 045 or enter your details here.

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