Consumer Technology


Understanding all the electricity plans in Australia can feel overwhelming. Different companies have different tariffs, discounts, and measures. It is crucial to choose the right plan that will regulate the amount you spend on energy whether it is for your home or your business. This guide is here to help you make an informed decision on which of the available plans is most appropriate for you. It provides helpful guidance and relevant knowledge on navigate and compare electricity plans in Australia, so you can spend less time and money.

Understanding the Basics

Before you start comparing plans, it's important to know the two main parts of an electricity bill: usage charges and supply charges.

  1. Usage Charges: These are based on the amount of electricity consumed which is expressed in kilowatt hours (kWh).
  2.  Supply Charges: This is also known as service or daily rates and are the connection fees that are charged to a user no matter how much they use electricity.

Useful Advice on How to Choose an Electricity Plan


  1. Understanding Your Electricity Consumption

First of all, get informed about the amount of electricity you consume. To know your average use, try looking at your prior bills. On average, a home consumes between 4,000 to 6,000 kWh every year but depends on some factors like the size of the house and the number of occupants.

  1. How to Find Out When You Use the Most Electricity

There are situations when electricity is more expensive based on some time schedule. Some plans have different rates according to the time of the day, that is, lower rates during night and high rates during the day and late evening. If you know when you use the most electricity, that will help you decide which type of plan you need. 

  1. Compare Prices and Deals

As you are selecting between these plans, consider not only the rates that may be charged but also the possible discounts provided. Others offer hefty discounts if you pay within a given period, or sign up via the internet. But remember, such discounts are normally limited to the usage charges and not the supply charges. For instance, a plan with a 20% discount on a 30c/kWh rate would mean that it costs 24c/kWh for usage.

  1. Understand Contract Terms

Some plans require you to sign a contract for a specific period; the companies charge some amount of money in case you switch in the middle of the agreed time. While longer contracts may have lower electricity rates, consider whether you want an option that has no lock-in period because you may require more flexibility, especially if your power usage increases.

  1. Beware of Hidden Cost

In addition to the usage charges and the supply charges customers should look at the other hidden charges that they are likely to make. They may include connection fees, disconnection fees, fees for charges made later than the due date, and fees for paper bills. These extra costs may rise and play a role in determining how much of an actual bargain the plan is.

  1. Check Out Green Energy Sources

If you wish to support the environment look for energy firms that offer part or some of their electricity from renewable resources. Some companies allow you to select the type of electricity you wish to use which is referred to as green energy and they charge you a little more. It is a way through which we can promote the use of renewable energy sources and at the same time be on the right side of the financial disk.

  1. Take advantage of the comparison tools online.

There are many websites and tools available on the internet for comparing electricity plans. Some of the sites available include government sites such as Energy Made easy, or other private websites such as Canstar Blue and Connect Market where you enter your usage details in order to compare various providers. These tools help in giving a broader view of the options that are available out there.

Case Study: Comparing Two Popular Plans

To illustrate how these tips can be applied, let’s compare two hypothetical electricity plans for a household that uses 5,000 kWh per year.

Plan A

- Usage Charges: 25c/kWh

- Supply Charges: $1.00/day

- Discount: 15% off usage charges for on-time payments

- Contract Length: 12 months

- Exit Fees: $50


Plan B

- Usage Charges: 27c/kWh

- Supply Charges: $0.90/day

- Discount: 20% off usage charges for direct debit payments

- Contract Length: No lock-in

- Exit Fees: None

Calculating the Annual Cost


For Plan A:

- Usage Cost: 5,000 kWh  25c = $1,250

- Discounted Usage Cost: $1,250  0.85 = $1,062.50

- Supply Cost: $1.00  365 = $365

- Total Annual Cost: $1,062.50 + $365 = $1,427.50


For Plan B:

- Usage Cost: 5,000 kWh  27c = $1,350

- Discounted Usage Cost: $1,350  0.80 = $1,080

- Supply Cost: $0.90  365 = $328.50

- Total Annual Cost: $1,080 + $328.50 = $1,408.50

In this example, Plan B is a bit cheaper each year by $19. But Plan B's no lock-in contract offers more flexibility, which might suit some households better.

Final Thoughts

Choosing the right electricity plan means understanding how much energy you use, comparing prices and deals, and thinking about contract terms and extra charges. By comparing plans in a structured way, you can pick one that saves you money and fits how you use energy. Use online tools to make it easier, and remember to check and switch plans regularly to get the best deal.