Saturday, April 4, 2020

Is it time to switch to a new electricity provider?

October 7, 2019 by  
Filed under Business, Money, Opinion, Weekly Columns

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( Did you receive an outrageous electricity bill? If that has pushed you to consider a new electricity provider, you’re not alone.

Over the years, there has been a constant rise in the cost of electricity. It is quite possible that you signed up for a plan that earlier suited your budget, but doesn’t anymore.

Understandably, looking for an electricity provider is not even half as fun as shopping for a new outfit. But for the sake of saving your wallet from an excessive electricity bill, you need to find a better alternative.

To make the decision easier for you, we’ve summarized the ideal times for switching to a new provider.

When there’s a price hike

When the bigger competitors hike prices, other suppliers are likely to follow the lead. The other factors that contribute to an increase in energy prices include wholesale costs, time of the year, environmental costs, network charges and retail margin.

Whatever the reason might be, there can be a hike in energy prices at any time. If you’re on a variable rate tariff, it will severely impact your bill. This is because variable rates correspond to wholesale energy costs.

To avoid this, you can switch to a fixed tariff before prices hike. Further, you have to keep an eye out for price hikes. If you have observed other suppliers increase their prices, there’s a good chance yours will as well.

When there’s a better deal

With the high competition in the energy industry, suppliers are constantly trying to one-up each other. Being a consumer, you should take advantage of your position.

Chances are there are new suppliers offering attractive plans to build their market share. This will encourage other suppliers to follow suit by lowering their prices.

It doesn’t matter if you are on a fixed or variable rate, always be on the lookout for a better deal. Look beyond the major suppliers and compare your alternatives. Your own initiative can help you discover a much better (and cheaper!) deal.

You should consider Energy Australia. It offers energy contracts with fixed pricing for 2 years.

When you’ve never switched

Have you never switched your electricity supplier? If yes, it’s definitely time to consider switching to a new provider.

You might think that if the services are fine, why bother? The simple reason is that you don’t know what others are offering. There’s a possibility that you’re paying way more than you need to.

For the initial 12-month period, most suppliers provide deals that are too good to be true. As this duration lapses, they tend to turn to a standard plan that’s way more expensive.

So, if it has been a long time since you switched, it’s worth looking around and making the switch for more savings.

Right before winter

Suppliers are notorious for increasing prices right before winter. This is because there’s higher consumption during winters to keep your home warm. As there’s an increase in demand, prices surge.

Don’t wait until winter when the rates are high. It’s a good idea to start comparing suppliers during late summer or early autumn.

When your current plan expires

Instead of waiting until your current energy plan expires, start browsing new suppliers or cheaper plans offered by your existing supplier. If you fail to switch before the last expiration date, your supplier will automatically place you on an expensive standard rate.

This is a particularly suitable time to switch as you won’t be required to pay any exit or cancellation fees.

To secure the cheapest deals, first and foremost you have to become an aware consumer. Switching at the right time will save you from hefty bills, so don’t hesitate to play the market to your advantage.

Staff Writer; Doug Hall

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