FAQ

What types of electricity plans are available in Australia?

If you've reached a stalemate on price then it might be time to start looking at the type of plan you want. For most Australian households, it'll be a toss-up between a market offer and standard contract.

Market Offers

Market retail contracts are energy plans designed by retailers. These are almost always cheaper than the alternative standard retail contracts offered, and are likely to include discounts, incentives or bonuses for customers. The main downside to a market offer is that a retailer can change the price at any time, unless it is a fixed rate plan. The majority of these offers come with variable rates.

Standard Contract

Standard retail contracts - also known as standing offers of default market offers - are plans with the terms and prices set by a state government. Retailers in deregulated electricity markets must provide a standard retail contract by law as a default option for customers yet to switch to a market offer contract. Standard retailer contracts generally have higher rates than market retail offers and there are no discounts available. As such, standard offers are more expensive and are not intended as a viable alternative to market contracts.

Variable vs Fixed Rate

If choosing a market offer, the next decision will be whether you want to lock-in your rates for a period of time or leave it in the hands of your provider. Fixed rate energy plans are a great way to bring a level of certainty to your power bills for 12 to 24 months. But it does mean that you're stuck with that price until your contract ends. With variable rates while your prices may fluctuate, it does mean that if cheaper prices become available, you'll have a better chance of accessing them. And rest assured - while your retailer can change prices at any time on a variable rate offer, they are still legally required to give you at least five business days' notice before implementing any changes to your bill.

What are supply and usage charges?

Electricity charges refer to the individual cost components that make up an energy bill. The two main charges are supply and usage.

Supply Charges

An electricity supply charge is a cost incurred for remaining connected to an energy network. Supply charges vary considerably from state to state, generally ranging in costs from 80c to $1.50 each day. Even if you don't use any power, you will still need to pay the supply charge. Despite supply costs being a charge imposed by energy distributors, the rates will vary from retailer to retailer.

Usage Charges

Electricity usage charges are what you pay for each kWh of electricity your household consumes - the more energy you use, the more you will pay. Usage charges generally cost around 20c/kWh to 40c/kWh, but prices vary significantly between states and depending on your provider. Usage charges will typically be the costliest element of your electricity bill, so it's important to understand what rate you are paying and whether you could find a lower rate with a different supplier.

What are the different types of electricity tariffs?

A tariff refers to the pricing structure of your electricity usage charges. Depending on your tariff, you may be charged different rates depending on when, or how, you use electricity. Tariffs can vary between energy retailers, but the most common electricity tariffs are:

Single Rate Tariffs

A single rate tariff charges electricity at a flat rate, no matter the time of day or season. This is generally the standard tariff an energy customer is placed on and doesn't require additional metering or resources. If you are a single rate tariff customer, you might see these charges referred to as a 'peak', 'anytime' or 'general usage' rate on your bill.

Time of Use Tariffs

A time of use tariff charges different rates for power depending on the time of day, or in some cases the time of year, you are using your energy. These charges are generally broken into three sections; peak, off-peak and shoulder. Peak time is when customers will be charged the most for power usage as this time correlates to when demand is greatest on the grid - typically between 3pm and 9pm on weekdays. Off-peak times are generally the cheapest for customers on this kind of tariff, however this time is usually in the middle of the day or later in the evening, depending on where you live. Shoulder times cover all those outside of these.

Controlled Load Tariffs

A controlled load tariff is a separate charge used to measure power from high-usage appliances, such as hot water systems or pool pumps. Typically, this tariff is only charged for limited hours in the day and will only measure usage from the nominated appliance. As such, a controlled load tariff must be used in conjunction with a single rate or time of use tariff, which can then measure the rest of the properties' energy usage.

What are peak and off-peak electricity times?

Peak and off-peak electricity times refer to separate usage rates that are charged for different times of the day. This type of pricing structure is only available to customers on a time of use tariff. A flexible pricing tariff means customers are charged three separate electricity usage rates for either 'peak', 'off-peak' or 'shoulder' periods, and is common for households with smart meters installed.

Peak

A 'peak rate' is charged during periods where there is a high demand for electricity. Peak usage rates are generally applied from 3pm to 9pm and are considerably higher than those charged in off-peak or shoulder periods.

Off-Peak

An 'off-peak rate' is charged during periods of reduced energy usage. Off-peak electricity rates generally apply from 11pm through to 7am and are much cheaper than shoulder or peak period rates.

Shoulder

A 'shoulder rate' is a rate charged between peak and off-peak periods when there is a mild demand for electricity. Shoulder rates usually apply from 9pm to 11pm and 7am to 3pm. Shoulder rates are more expensive than off-peak periods and cheaper than peak periods.

What's the difference between electricity retailers and distributors?

There is an important distinction between electricity retailers and distributors. In a nutshell, a retailer is the company that bills a customer for using energy, while a distributor is responsible for maintaining electricity supply. For billing enquiries, it's best to contact your electricity retailer, otherwise known as a power supplier. You'll need to contact your energy distributor if you're enquiring about a power supply issue, outage, new electricity connection or fallen powerlines.

What I can do to reduce my electricity and gas bill?

Energy is an essential service and one almost all households will have to spend money on, but that doesn't mean it has to cost you an arm and a leg. If you're looking to shave a few bucks off your next power and gas bill, insulating your home or installing energy efficient lighting and appliances may help. Unplugging appliances and monitoring your energy usage through apps or devices may also assist you in keeping informed of your usage habits.

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We don’t charge customers anything to use our comparison service. Instead, if you're using this service, we receive a commission (which we may share with any partner who referred you to the service) from your chosen service provider in return for using our team and technology to help you take out a new energy plan after completing a comparison through our website. You pay nothing extra for using our service and better yet, our providers are happy to reward you with great deals to help you through the process and make your experience that much better.