Strategies for Comparing Energy Providers in Australia

When was the last time you reviewed your energy plan? If the answer is "years ago," you might be overpaying. The good news is, switching to a better energy provider is easier than you might think. Doing so could save you hundreds of dollars annually, all while offering customised features for your unique energy needs.  

This guide is designed to empower Australian homeowners and energy consumers with proven strategies to evaluate and switch energy providers effectively. You’ll not only learn how to compare energy providers but also discover tips for balancing affordability, eco-conscious plans, and exceptional service. 

Why Compare Energy Providers? 

With over 30 energy retailers competing in Australia, staying on an outdated or expensive plan could mean spending hundreds more than necessary. The Australian Competition and Consumer Commission (ACCC) reports that over 80% of households in the National Electricity Market (NEM) could lower their electricity bills by switching to a more competitive plan or negotiating a better deal with their current provider. 

In fact, switching from a Default Market Offer (DMO) to the cheapest available plan could save households up to $415 annually, with savings varying by location and provider. However, many Australians remain on costly plans simply because they haven’t compared their options. 

By comparing energy providers—whether for electricity, gas, or bundled plans—you can: 

• Cut costs and find better rates. 
• Access discounts and rewards for new customers. 
• Choose renewable energy options like solar-friendly plans. 
• Get better customer service from highly-rated providers. 

Bottom line? Reviewing and switching to a better energy plan could help you save hundreds each year while also supporting a plan that fits your lifestyle and sustainability goals. 

Source: Australian Energy Update 2023 , September 2023

How to Compare Energy Providers  

1. Know Your Energy Usage Patterns  

Before you start comparing, understand how much energy your household consumes and when. Look at the past 12 months’ worth of energy bills to determine patterns. Are you a high-energy user in summer? Or do you use minimal power during the day due to solar panels?  

Having this information helps ensure any energy plan aligns with your behaviour. Providers often offer specific benefits, like cheaper rates for high off-peak usage or solar feed-in tariffs.  

2. Use Online Comparison Tools 

Comparing electricity plans is easier than ever thanks to a range of online comparison tools—but it's important to understand how each one works and what it covers. 

Government-Run Tool 

• Energy Made Easy is operated by the Australian Energy Regulator (AER). 
• It is independent, free to use, and legally required to display all generally available electricity and gas offers from retailers in regions covered by the National Energy Retail Law. 
• It does not promote any provider and is designed to support informed consumer choice. 

Privately Operated Platforms 

• Tools like Econnex and Electricity Provider are privately owned platforms. 
• These sites let you compare offers from a panel of participating retailers—not all providers in the market. 
• They may have commercial agreements with certain providers, which means results are limited to brands they are partnered with. 
• However, they often provide additional features like streamlined sign-up processes, filters by contract terms, and optional reward offers (where available and clearly disclosed). 

Pro Tip: Before making a decision, check both government and private comparison tools to get a complete picture of your available options. Always read the Critical Information Summary (CIS), and don’t rely solely on pricing—consider factors like customer support, contract flexibility, and payment options. 

3. Understand Tariffs and Pricing  

Not all plans are created equal, and understanding the pricing structure is key. Look for these common tariff types in your area:  

• Flat Rate: Consistent rates regardless of when you consume electricity. Ideal for steady usage patterns.  
• Time of Use (TOU): Offers cheaper rates during off-peak hours, perfect for night owls or solar households.  
• Demand Tariffs: Charges based on your highest usage during peak times.  

Ensure you review plans based on your specific usage, as a plan with low flat rates might not make sense if you benefit more from TOU discounts.  

4. Focus on the Total Costs, Not Just Discounts  

Energy providers often advertise discounts like 20% off if you pay on time. While appealing, these discounts don’t guarantee the lowest final bill. Always look past the discounts to assess the total costs, which include both usage charges and a daily supply fee.  

Key Factors in Choosing Energy Providers  

Once you’ve shortlisted options, evaluate providers on these five essential criteria:  

A. Customer Reviews and Ratings  

Your experience doesn’t end with signing a contract. Look at customer reviews to gauge how providers handle billing errors, outages, or service changes. Websites like ProductReview and Google Reviews can provide insight into customer experiences.  

B. Green Energy Options  

Does sustainability matter to you? If yes, select an energy provider offering renewable energy options like solar or wind power. Look for the GreenPower program certification, which ensures the provider offsets a portion of its energy with green sources.  

Australians generating their own solar power can benefit further by comparing solar feed-in tariffs. However, beware of providers offering exceptionally high feed-in rates; they may increase other charges to compensate.  

C. Contract Terms and Flexibility  

Read the fine print carefully. Identify any lock-in periods, exit fees, or short-lived perks like introductory rates that disappear after a few months. Not every deal provides ongoing savings.  

Contract length matters too. Some providers offer no lock-in agreements, while others require contracts of up to two years.  

D. Extra Features or Discounts  

Many energy providers now include value-adds such as usage tracking apps, paperless billing discounts, and flexible bill payment options. These additional features can save you time and ensure efficient energy management.

Combining Gas and Electricity for Bigger Savings  

Many energy providers offer discounts for bundling gas and electricity plans. This option saves not only money but also the hassle of managing multiple bills.  

When researching bundled plans, pay close attention to whether the discounts apply to both gas and electricity or just one of them. Use comparison tools to ensure the bundle makes sense cost-wise.  

Regional Differences in Energy Plans  

Energy laws and tariffs vary significantly across Australian states. Here are key considerations by region:  

• New South Wales (NSW) and Victoria provide access to the widest range of competitive providers.  
• Queensland has fewer options, but pricing discrepancies between peak and off-peak tariffs can be significant.  
• South Australia generally features higher energy costs; switching to green energy can offset these expenses.  
• ACT customers benefit from regulated pricing, though some private market options may provide additional savings.  

Switching Made Simple  

Switching energy providers is relatively straightforward. Once you’ve identified your preferred plan, the new provider typically coordinates the switch with your previous supplier. There’s no need to worry about disruptions to your energy service.  

Here’s a step-by-step summary of the switching process:  

1. Choose Your New Plan: Filter based on cost, green energy options, and customer support.  
2. Provide Your Details: Share your last energy bill and address with the new provider.  
3. Supplier Coordination: Your new provider handles the transition seamlessly, often within a few business days.  
4. Final Bill: Expect a final bill from your old energy provider covering usage until the switch date.  

Take Control of Your Energy Costs  

Energy costs shouldn’t burn a hole in your pocket. By taking the time to compare energy providers, Australian homeowners and consumers can enjoy greater savings, enhanced services, and even a reduced carbon footprint.  

Don’t put this task off any longer. Use official tools like Econnex, Electricity Provider or trusted alternatives to explore options that better suit your lifestyle and budget.  

Empowered choices lead to empowered lives. Remember, every kilowatt counts!