Switch Gas Plans: A 5-Step Checklist for Smarter Savings

With energy costs on the rise, many Aussie households are looking closely at their gas plans, searching for better value. But switching providers or tariffs isn't a decision to be rushed. A hasty switch could lock you into a plan with higher bills or unexpected charges. 

To help you make a confident choice, we've created a practical 5-step checklist. This guide will walk you through everything you need to know to compare gas plans wisely and ensure your next move is the right one for your household and budget. We'll cover how to understand your usage, what to look for beyond the advertised rates, and how to use comparison tools to your advantage. 

Step 1: Understand Your Current Gas Usage 

Before you start a gas rates comparison, grab your latest gas bill. Understanding your current plan is the benchmark against which all other offers will be measured. Focus on two key areas: 

• Usage charges: This is the rate you pay per megajoule (MJ) of gas you consume. 
• Supply charges: These are the fixed daily costs for being connected to the gas network, regardless of how much gas you use. 

Knowing your average monthly or quarterly usage helps you identify what kind of plan will offer the most savings. For example, if your household uses more gas in winter for heating, you’ll want to find a plan with lower usage rates with lower usage rates during these peak times. According to the Australian Energy Regulator (AER), the average Australian household using gas consumes approximately 30,556 MJ annually, with winter usage being significantly higher. If your consumption is steady throughout the year, a balanced plan from one of Australia's reliable gas providers might be a better fit. 

Step 2: Compare Gas Rates and Plan Features 

Many people are tempted by the lowest usage rate they see advertised, but that’s only one piece of the puzzle. A truly good value gas plan depends on several factors. When you compare gas plans, look at the complete picture: 

• Supply charge: A small difference in the daily supply cost can add up significantly over a year. 
• Discounts and rebates: Some plans offer discounts for paying on time or setting up a direct debit. Be aware of the "loyalty penalty," where long-term customers miss out on better deals offered to new ones. 
• Contract terms: Are you locked into a contract, or can you switch providers at any time without a fee? 
• Flexible billing: The option for monthly versus quarterly billing can help manage your household cash flow. 

When you perform a gas comparison, always focus on the estimated annual cost rather than just the per-unit rates. This figure provides a much clearer idea of what you'll actually pay over the year. 

Step 3: Check for Exit Costs and Hidden Fees 

Not all gas plans are as straightforward as they appear. Hidden fees can quickly erode any savings you thought you were making. Before you switch, carefully read the plan's fact sheet and terms to check for: 

• Connection or disconnection fees: These can apply when you start or end a service. 
• Early termination charges: If you’re on a fixed-term contract, leaving early could cost you. 
• Paper bill fees: Some providers charge extra if you opt out of digital billing. 

Being aware of these potential costs ensures there are no surprises on your first bill with a new provider. 

Step 4: Match the Gas Plan to Your Lifestyle 

The ideal gas plan is one that aligns with how your household consumes energy. Think about your specific needs: 

• High-usage homes: Large families or households that rely heavily on gas for heating and cooking often benefit from plans with lower usage charges, even if the daily supply fees are slightly higher. 
• Low-usage homes: Singles, couples, or smaller households may find that a plan with a lower supply charge is more economical, as their overall consumption is less. 
• Seasonal variations: If you use gas heavily only in winter, look for a plan that keeps supply costs down all year but doesn't penalise you for winter spikes in usage. 

By matching the plan's structure to your lifestyle, you can avoid overpaying for energy you don't use. 

Step 5: How to Compare and Switch Gas Plans 

Once you've done your homework, it’s time to make the switch. Using a trustworthy gas comparison tool is the final, crucial step to ensure you get the ideal deal. 

Here’s a simple guide to follow: 

1. Review your current gas plan: Check for any exit fees and note your current supply and usage rates. This is your baseline for comparison. 
2. Determine your energy needs: Knowing when and how you use gas helps you find a plan that maximises your savings, especially with different tariff structures like block rates. 
3. Use a comparison tool: A reliable online tool allows you to see real-time offers, discounts, and estimated annual costs. You’ll be able to compare key details, including: 
4. The average annual cost of each plan. 
5. Daily supply charges and usage rates per megajoule (MJ). 
6. How tariff blocks work (where you pay one rate for an initial amount of gas and a different rate thereafter). 
7. Any conditional discounts or new customer credits. 
8. Sign up for your new plan: Once you’ve found the right fit, you can often follow a link directly from the comparison tool to sign up. You’ll need to provide your Delivery Point Identifier (DPI) number, which is found on your gas bill and identifies your meter. 
9. Let your new provider handle it: You typically don’t need to contact your old gas provider to cancel. Your new provider will manage the switch for you. 
10. Confirmation: Look out for a welcome pack from your new provider confirming that your service has been switched. Your new plan will have a ‘benefit period’ (usually 12 months) where specific rates and discounts apply. 

Find Your Next Gas Plan Today 

With rising energy costs, taking the time to compare gas charges and switch to a more suitable plan is one of the smartest financial moves you can make. By understanding your usage, looking beyond advertised rates, and using a reliable comparison tool, you can find a plan that saves you money without sacrificing comfort. 

Ready to see what you could save? Use our free tool such as electricityprovider.com.au to compare gas plans from a range of trusted Australian participating providers in minutes. 

Note: Electricityprovider.com.au is a comparison service for participating energy retailers and may not include all offers available in the market.