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Energy plans explained, with Canna Campbell.

Canna Campbell from SugarMamma TV breaks down the essentials of energy plans.

Canna Campbell
SugarMamma TV

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Your energy questions, answered

What is renewable energy?

Renewable energy is produced from natural resources that aren’t depleted when used. It’s the preferred energy option for the future both in Australia and around the world, mainly because it won’t run out, unlike coal and other fossil fuels. As renewable energy doesn’t contribute to carbon emissions, it also won’t negatively affect climate change as significantly.

There are a variety of renewable energy sources. Solar power is one of the most well-known, wind power is one of the most widespread, and hydropower is one of the oldest. There are also other renewable technologies becoming available that harness geothermal energy or ocean energy to produce heat and electricity.

How does solar energy work?

Solar power is a common form of renewable energy, generated from the sun’s heat or from sunlight. Captured through the use of solar panels, often on the roofs of residential and commercial properties, the energy produced is converted into electricity or used to heat air, water, and to power homes, businesses, and batteries.

More than two million Australian households have a solar system on their rooftop for electricity generation, although there are a variety of other ways that solar energy can be harnessed. These include:

Hot water systems
Cars and school buses
Phone chargers
Wearables
Air conditioners
Security cameras
Advertising displays
And more

How do I calculate electricity cost from watts?

How much you’re paying for electricity and what’s causing your bill to skyrocket each month can seem like a difficult puzzle to figure out. But thankfully, there’s a simple formula to help you calculate your electricity costs from watts. All it takes is the following steps:

Find out how much you pay per unit of electricity. This is usually calculated in kilowatts per hour (kWh) and is typically found on your bill. There may be different rates for peak and off-peak usage.
Determine how much input power your appliances are using. This information is often found on the packaging or in the instruction manual in watts. Convert this to kilowatts.
Multiply the input power in kW by the price of your electricity per kilowatt hour (kWh). As an example, 3kW (appliance input power) x 30c per kWh (cost of electricity per hour) = 90c per hour to use that appliance.

Why have electricity prices gone up?

There are a multitude of reasons for rising electricity prices in Australia. One of the main ones has been the need to invest in maintaining and improving the network infrastructure in order to increase capacity in a growing population. Another factor has been the need to address environmental issues, which means minimising the use of coal plants and creating more renewable energy sources.

Proposals to keep price increases in check have included:

Further privatisation of state government-owned electricity networks
Adjustments to environmental policies that impact wholesale energy costs
Further retail price deregulation
Setting standards based on the value that customers place on network reliability

What are utilities?

Utilities are services that are typically required for the home or office to function, such as electricity, gas, and water. In some cases, they may also include council rates (such as street cleaning, rubbish disposal, etc.), as well as telecommunications services.

Depending on which state you live in, there may be additional taxes or levies for your utilities. For example, in the Australian Capital Territory (ACT), your telecommunications bill is also considered a utility and is charged through the Utilities Network Facilities Tax.

If you’re on a pension and receive a payment from Centrelink, there may be cases where you’re entitled to a discount on your utility bills. You can find out more on the Department of Human Services website.

How do I switch energy providers?

Before you switch energy providers, it’s important that you review the full details of your existing plan and the one you’re intending to switch to. This will ensure you’re switching to something that is actually going to be more beneficial for you.

You should also ask yourself the following questions:

For electricity, what is the cost per kilowatt per hour?
For gas, what is the cost per megajoule?
Are there any fixed costs or service fees?
What is the length of your contract and are there any exit fees?
Can prices change during the contract?
Do I get a discount for paying on time?

With iSelect you can compare plans offered from our range of providers*, and select the one which suits you. Start comparing online, or call us today on 13 19 20 to talk with our friendly team.

How do I save money on my energy bill?

There’s a few different things you can try to help save money on your energy bill each quarter. Suggestions include:

Turn off appliances at the power socket when you’re not using them
Dress for the weather (like putting on a jumper) instead of turning on the heater
Dry clothes outside or use an indoor clothes rack instead of using the dryer
Use a hot water bottle instead of an electric blanket
Use a door snake to minimise the draft from under your doors
Rely on natural light as much as you can, rather than automatically switching on lights

On top of these tips, you can also compare energy plans on offer from iSelect's range of providers* and see if you can save.

Is there a best energy plan?

Unfortunately there’s no “best” or “one-size-fits-all” energy plan or provider, as finding a plan that suits you will ultimately depend on your individual needs and circumstances. When comparing plans, it may be beneficial to consider the following questions:

How many people are living or working in the premises?
What is the property made of? Does it maintain temperature well?
What type of connections are available at the address? Just electricity, or is gas available as well?
Does the property have solar panels, or would you be able to install them?

How do smart meters work?

Smart meters are designed to measure and record your electricity usage. This data is then transmitted every 30 minutes to your electricity distributors (the company that owns and maintains the grid, poles, and wires). Your energy provider also receives the data and may make it available to you via a web portal or app, allowing you to monitor your energy consumption, better manage your costs, and compare different offers that may be more suitable.

It also allows your meter to be remotely read by your provider, which means no more estimated bills. It can quickly notify your distributor if there’s a power outage, which means the problem can be located faster, repair crews can be allocated quicker, and repairs can begin sooner.

What is a carbon offset?

Companies and organisations in Australia and around the world are trying to reduce their carbon footprints to help address increasing environmental concerns. One way many are doing this is by aiming to become carbon neutral. This is when an entity’s net greenhouse gas emissions are equal to zero.

Achieving this requires a company to reduce their emissions as much as possible, and then purchase carbon offsets equivalent to the remaining emissions. This allows them to contribute to a range of social, environmental and economic outcomes, such as providing employment for local communities and supporting the maintenance of habit for native animal and plant species.

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*iSelect does not compare all energy providers or plans in the market. The availability of plans may change from time to time, depending on who iSelect’s providers are and what plans they make available to iSelect. Not all plans made available from iSelect providers may be compared by iSelect either due to commercial arrangements, area or availability, so not all plans or providers compared by iSelect will be available to all customers. Some plans and special offers are available only from iSelect’s contact centre or website. Energy plans are available only for properties located in eligible areas of Victoria, New South Wales, South East Queensland, South Australia and ACT. Click here to view iSelect’s range of providers.

**Based on iSelect data since July 2017 using Adobe Analytics Tracking Tool