How to compare electricity plans

Thinking about switching to a cheaper power plan? Smart move! Just make sure you consider contract terms, fees and discounts when you do your research.

Comparing electricity plans can be hard, because some plans might end up being more costly than you realise.

For example, some providers charge fees that are easy to miss, while others offer one-off discounts in the first year so they can advertise a lower price.

Contracts

The first thing to look out for is contract terms.

Some plans allow you to come and go as you please, while others lock you in.

Fees

If you break a contract, you might have to pay an exit fee.

Some providers might also charge an account establishment fee, an annual membership fee and a meter reading fee.

You might get hit with a connection fee at the start of your plan, a disconnection fee if you don’t pay your bills and a reconnection fee if you settle your debts and get switched on again.

Other possible fees include a credit card fee, direct debit dishonour fee, cheque dishonour fee, late payment fee and paper billing fee.

Pricing

Pricing also comes in different flavours.

You’ll have to pay a daily supply charge and general usage rates.

But those general usage rates can vary, depending on what time of the day you need the electricity and how much of it you consume.

Discounts

Thankfully, the flow of money isn’t all one way!

Some plans come with a sign-on bonus at the start of the plan, a loyalty bonus if you stick around and a pay-on-time discount if you’re a prompt payer.

You might also qualify for member rewards (such as gift cards) or get a bundle discount if you combine your electricity with another product (such as a phone plan).