Learn how to identify and compare energy contracts. Discover the benefits of understanding your plan and tips for switching to a better deal.
Published on 26/05/2025
By Pallav Verma
Energy Comparison
Did you know that if you receive an electricity or gas bill, you already have a contract in place? Many Australians aren’t entirely sure what type of energy contract they’re on, and it could be impacting how much they pay. Understanding your energy contract doesn’t just help you avoid bill shock; it can also help you compare electricity prices, secure better deals, and manage your household more efficiently.
This comprehensive guide will help you identify whether you’re on a market contract or a regulated contract and explain how this impacts your energy bills. We’ve also included insights on how to compare power costs and switch energy plans.
If you’re receiving electricity or gas at your home or business, you have a contract with a retailer. Simply put, an energy contract is a legally binding agreement between you and the retailer providing your power or gas. These contracts ensure you continue to receive uninterrupted energy services, but not all contracts are created equal.
Generally, energy contracts in Australia fall into one of two categories:
Market contracts are agreements where you negotiate terms with an energy retailer, and they’re often customised to provide added incentives or discounts. Key features of market contracts include:
Market contracts are typically cheaper than regulated ones (depending on your negotiation skills!), making them a popular choice for those looking to compare the electricity prices and secure budget-friendly deals.
Regulated contracts are standard agreements with terms and rates set either by state government bodies or by energy retailers, depending on the state or territory. These contracts often come with more consumer protection but provide fewer discounts or special deals than market contracts. This makes them a solid choice for those who value predictability and simplicity.
For example, in Victoria, standard contract terms are governed by the Essential Services Commission (ESC), while prices are set by energy retailers. On the other hand, in other states like NSW, regulated energy prices are governed by state-specific regulatory bodies.
The type of electricity or gas contract you’re on affects everything from your overall costs to how much flexibility you have if you want to switch providers. Here’s why it’s important to know what kind of contract you have:
Not sure whether you’re on a market or regulated contract? Here are some steps you can follow to find out:
Many energy retailers explicitly state the type of contract on your bill. Look for terms like “Market Offer” or “Standing Offer.”
If your contract type isn’t clear on your bill, call your retailer’s customer service team for clarification.
Each state in Australia has specific rules about energy contracts. For example:
Now that you know your contract type, it’s time to explore your options to make sure you’re on the ideal deal. Here are key steps for comparing energy prices in Australia:
To compare electricity charges effectively, focus on:
Market contract rates can vary significantly, so shop around using electricity comparison websites like Electricity Provider or talk to providers directly.
Don’t be swayed solely by promising discounts.
A 20% discount on an unreasonably high rate may not result in real savings. Always read the fine print and calculate the total effective cost over time.
Discounts are often conditional, typically relying on factors such as paying on time, direct debit, or other eligibility criteria. It's important to check the base rates — not just the discount — before making a decision.
Disclaimer: Information provided is general in nature and does not consider your specific circumstances. Always review the provider’s Critical Information Summary (CIS) and terms and conditions to ensure the plan suits your needs. Prices, discounts, and conditions are subject to change.
If you use more power during specific periods (e.g., evenings), select a plan that suits your habits. Some flexible energy plans offer off-peak rates that can help you save.
Market energy contracts might come with additional charges such as:
Factor these into your decision when comparing plans.
Watch for regional differences in energy offerings. For instance, if you’re in Western Australia (a non-deregulated market), your choices will be more limited than in states like Victoria or NSW.
Switching to a better energy deal is easier than you might think. Here’s a quick guide to help you through the process:
Use an online electricity comparison tool to find competitive rates and plans. This ensures you’re making an informed decision before switching.
Once you’ve chosen a new retailer, they’ll usually handle the switch for you, including notifying your existing provider.
Many energy retailers provide a 10-day cooling-off period in case you change your mind.
If you’re currently on a market contract, ensure there are no early exit fees for switching.
Your energy contract should align with your household’s needs and budget. Don’t settle for high prices or unsuitable terms. By taking the time to compare power prices and understand your options, you can make informed decisions that save you money.
Understanding your energy contract sets the foundation for smarter financial decisions at home. By assessing what type of agreement you’re on and taking the time to compare power costs, you can ensure you’re getting the ideal deal available.
Visit trusted comparison platforms and discover how much you could save. It’s never too late to switch to a better energy deal. Empower yourself to take control of your electricity and gas choices today.
