How to choose the right energy plan
5 tips to find the plan that best suits you
An energy plan that perfectly matches your budget, needs, preferences and lifestyle may seem quite difficult to find. So in order to get the most suitable plan for your home or business, it pays to do some research first. And with some of the world’s highest power prices, Australian households and businesses start to become more and more energy responsible. This week’s blog will give you valuable insights into the questions to ask yourself before choosing the most suitable energy plan for your home or business.
1) Use comparison sites when you choose the right energy plan!
Starting last year, there has been more competition than ever before on the Queensland energy market. And what better way to save on your power bills than by using comparison websites? Therefore, in order to find a plan that matches your domestic our commercial needs, use an energy calculator provided by:
- Government sites such as energymadeeasy.gov.au that display all offers on the market.
- Commercial sites like youcompare.com.au, electricitywizard.com.au, iselect.com.au or mozo.com.au, showing most offers on the market.
So dare to click and compare!
2) Switch from a standard to a market contract
In general, market contracts are cheaper than the standard ones and give the opportunity to save through conditional discounts. After they apply, you may end up saving a few hundred dollars at the end of the year.
Also, the contract length is another thing to consider. It may be tempting to sign up to an attractive plan without realising you’re being locked into a lengthy contract with exit fees. So be sure to check these details carefully!
3) Compare usage and supply charges
Your energy bill will usually consist of usage charges for the power you use, plus supply charges simply for being connected to the grid.
If you are a large household, check the usage charges as they represent a higher percentage of your overall costs. The cheapest usage rates for peak times will generally be around 24-25 cents per kWh. On the contrary, the supply charges are the ones that weigh more if you are a smaller household. Supply charges in South East Queensland are typically around $1 a day, but can vary significantly.
While you may find fixed supply charges lower than $1 a day, they will likely be made up for by higher usage rates. Thus, it’s worth knowing these charges to help you find a better deal.
4) Understand energy tariffs
Tariffs refer to the pricing structure on your energy plans. Most Australians have a single rate tariff, which means they pay the same price regardless of the time of day. However, if you use more energy late at night or early in the morning, you may find it more convenient to switch to a flexible pricing tariff.
The following tariffs are popular for Queensland:
- Tariff 11 – standard residential electricity tariff
- Tariff 12A – ‘time of use’ tariff and alternative to Tariff 11
- Tariffs 31 and 33 – ‘economy’ tariffs which power certain high usage appliances such as hot water systems and pool pumps
5) Think about (and pay attention to) energy discounts and other benefits
Energy providers usually offer discounts for paying on time, by direct debit, signing up online or receiving bills via email. Therefore, what you need to do is to find out how you can qualify for that particular type of discount. Also, make sure it is something you will be able to fulfil.
Remember that the plans for promoting huge discounts don’t always mean they are the cheapest overall. So reading all conditions through will save you from paying a much higher price at the end of the contract.
Contact Jaric Electrical for the right advice on electrical energy plans
No matter how much energy your home or business needs, these simple tricks can help you choose the best plan. Combined with energy-efficient heating or cooling systems, you will have the peace of mind of having found ‘the right one’.
To find out more, call Jaric Electrical on 1300 452 742 or contact us online.