Why Small Changes in Your Energy Plan May Lead to Big Savings

Managing your household energy costs can feel overwhelming, but the truth is that small, thoughtful adjustments to your energy plan and usage can lead to significant savings. By understanding how energy plans work, capitalising on peak and off-peak hours, and adopting cost-saving habits, Australians can cut their bills without compromising comfort. 

This guide demystifies energy plans and shares practical, easy-to-implement tips for maximising savings while reducing energy consumption. Whether you're a homeowner or renter, these strategies will help keep your electricity and gas costs in check. 

Note: This article contains general information only. It does not consider your personal circumstances. Actual savings may vary based on location, energy usage, tariff type, and available offers. Please review individual plans and consult with providers for details.

Understanding How Energy Plans Work 

Energy plans aren't a "one size fits all." The amount you pay for electricity and gas depends on factors like your provider, plan, and even when you're using energy. Here’s an overview of the most common types of energy plans in Australia: 

Flat-Rate Plans 

Flat-rate plans charge a consistent rate for electricity, regardless of the time of day. While they’re simple to understand, the lack of flexibility can mean missing out on savings during off-peak hours.  

Time-of-Use Plans 

Time-of-use plans charge different rates depending on the time of day: 

• Peak hours (typically evening): Higher rates because demand is at its highest. 
• Off-peak hours (late night to early morning): Lower rates when demand is lower. 
• Shoulder periods (between peak and off-peak): Moderate rates. 

These plans reward households that can shift energy usage to off-peak times, making them cost-effective for those with flexible schedules or automated appliances. 

Demand Tariffs 

Demand tariffs include an additional charge based on your highest energy usage during a short interval, typically 30 minutes within a billing period. While these plans can lead to savings for cautious users, they also hold the potential for "bill shock" during unexpected high usage periods. 

Green Energy Plans 

Some providers offer green energy plans, which supply electricity sourced from renewable energy like wind or solar. While these plans support sustainability, they may be slightly pricier upfront. 

Takeaway? The key to unlocking savings lies in choosing an energy plan that suits your lifestyle and habits. Use a tool like Electricity Provider to compare electricity providers and find the right fit. 

Note: Electricity Provider is a commercial comparison platform. Not all retailers or plans in the market are included.

Small Changes to Maximise Energy Savings 

Once you’ve chosen a plan, small, manageable changes can have a big impact on your energy bills. Here are some practical ways to cut costs and improve efficiency: 

1. Optimise Heating and Cooling 

Heating and cooling account for about 40% of the average Australian household’s energy usage. Here’s how you can reduce the cost: 

• Set air conditioning to 24°C in summer and heating to 18–20°C in winter. Every degree above/below these recommendations adds up to 10% to your bill. 
• Use ceiling fans to complement your air conditioning or heating system. Reverse the fan’s rotation in winter to push warm air down. 
• Seal gaps around doors and windows with weather strips to prevent heat loss or gain. 

2. Timely Use of Appliances  

For households on time-of-use plans, using energy-intensive appliances during off-peak hours can drastically lower costs: 

• Run your dishwasher, washing machine, and dryer during off-peak times, often late at night or early morning. 
• If you have solar panels, align appliance use with peak solar generation hours to utilise free energy effectively. 

3. Switch Off Standby Power 

Did you know standby power (from devices plugged in but not in use) can account for up to 10% of your electricity bill? Make it a habit to switch off appliances at the wall, such as: 

• TVs, gaming consoles, and chargers 
• Kitchen appliances like microwaves and kettles 

Pro Tip: Use power strips with on/off switches to make this even easier. 

4. Upgrade to Energy-Efficient Appliances 

When replacing appliances, look for models with high Energy Star ratings. While they might come with a higher initial price tag, the savings on running costs are worth it. For example: 

• LED light bulbs use up to 75% less energy than halogen options. 
• Modern washing machines and refrigerators are designed to consume significantly less electricity. 

Adjust Your Energy Plan for Bigger Savings 

A simple change to your energy plan can also help you save: 

• Compare electricity rates regularly. Energy providers frequently adjust their pricing structures and Switching plans may help reduce costs, depending on your provider, usage, and location. Use comparison platforms like Electricity Provider for a seamless process. 
• Consider solar. Solar panels are a long-term investment that can reduce up to 45–90% of your electricity needs. Plus, government rebates are available to offset upfront costs. Actual results vary depending on system size, location, and household consumption. 
• Explore time-varying feed-in tariffs for any electricity you export back to the grid. Solar households with west-facing systems, for instance, can maximise value during late-afternoon peak periods. 

Habits That Reduce Both Energy Costs and Environmental Impact 

Aside from financial savings, these changes benefit the planet as well: 

• Use natural light during the day instead of keeping lights on. 
• Dry clothes on a line or rack rather than using a tumble dryer. 
• Cook in bulk to avoid repeatedly preheating your oven for smaller meals. 

Even slight behavioural changes, when sustained, contribute to a significant reduction in your household’s carbon footprint. 

The Power of Monitoring and Energy Management Systems 

Smart meters and energy management tools can provide real-time insights into your energy usage. With this data, you can: 

• Identify high-consumption appliances or habits to adjust. 
• Track costs for different times of the day or year. 
• Plan energy-heavy activities during less expensive off-peak hours. 

Essential Government Rebates and Programs 

Australians can tap into rebates that help lower energy costs and encourage sustainability: 

• NSW Energy Savings Scheme offers discounts for upgrading appliances to energy-efficient models. 
• Federal Household Energy Upgrades Fund provides discounted financing for installing solar systems and modern appliances. 
• Victorian Energy Upgrades Program provides up to $600 in discounts on eligible energy-efficient appliances. 

Check with your provider and local government to see which rebates you qualify for. 

Note: Rebate availability and eligibility may vary by state and household circumstances. 

Compare and Save with Electricity Provider 

By now, you’ve seen how simple shifts in energy usage and plan selection  may help you find better value based on your household needs. The next step? Finding a plan that fits your household’s unique needs. 

Electricity Provider simplifies the process of comparing energy plans. Whether you’re looking to switch providers or maximise savings with an existing plan, our platform does the hard work for you.  Electricity Provider is a commercial comparison service. Some retailers may not be included in comparisons.