How To Choose an Electricity Provider

Usage patterns

The best starting point is understanding your home’s usage needs and patterns. Knowing how your home uses its power shapes the kind of plan you might choose while ensuring your energy costs stay within budget.

The number of people living in your home can also affect where your energy bill falls compared to household averages. It also helps you understand when you use most of your power, whether that’s during the day or during peak after-work hours. This can also help you figure out if a certain tariff or plan type could work better for you than another and even lead to potential energy savings.

Location

Where you live plays a big role in which energy retailers are available to you. Not every retailer operates nationwide, but even in areas with few providers, you should still be able to choose from a range of plans.

Your state also affects the types of plans available to you and how pricing works. In competitive energy markets like VIC, NSW, ACT, SA, TAS, and South East QLD, you may be able to choose between market plans (priced by retailers) and government-set default offers, also known as standing offers. These default offers are overseen by regulatory bodies like the Australian Energy Regulator (AER) to make sure existing and new customers are priced fairly no matter where they live. For some states, like regional Queensland, there could be limits to what providers and plans are available. This is why it’s important to understand how your location influences your choice as a residential customer.

Price

If you live in a state with a competitive market, you’ll likely see a range of prices and plans from different providers. When comparing plans, it’s important to understand how each component like usage fees, daily supply charges, and any extra charges adds to your final bill.

Usage charges are the cost per kWh for energy that your home consumes, while daily supply charges are a fixed amount you pay each day for being connected to the grid. It’s worth considering the impact of extra charges (like late payment or exit fees) or if any conditional terms can impact your regular bill. These differences could add up over time, so it’s worth comparing closely.

Available plan types

Energy plans can be charged in different ways, which could influence how your household uses it. Some of the most common tariff types include:

• Fixed rate: One consistent single rate for energy usage throughout the day.
• Time-of-use: Pricing is based on peak or off-peak time periods (sometimes shoulder periods too). Lower rates are associated with off-peak times and higher rates during peak periods.
• Controlled load: Certain high-energy appliances (like a hot water system) run on a separate meter and uses power charged at a specific rate. These can be run during off-peak hours to help lower costs.
• Demand: Usage rates are based on the highest measure of energy used across your billing period.

What’s available will depend on your home setup, your meter type, and your provider.

Renewables or GreenPower options

If sustainability matters to you, renewable energy options could influence your choice. With over 360,000 homes in Australia choosing GreenPower plans, these plans support renewable projects and bring sustainable power into the energy mix.

If your home runs on solar power, then making sure your provider has a range of solar panel-friendly options becomes more important. Feed-in tariffs, net metering or becoming part of a virtual power plant can all affect how much value you get from your system. Which could make a noticeable difference in the long run.

Reviews and awards

Price matters, but so does service. Billing clarity, customer support, and how easily problems can be resolved can all shape your overall experience, even if you only need to call up your provider once in a blue moon. Reading up on customer reviews can give you a simple snapshot into what dealing with a certain provider could look like. Industry awards and recognition are also a good hint to help you gauge how one retailer stands compared to others in the market.