Energy Tips
Shopping Around Isn’t Just for Groceries: It Can Slash Your Energy Bills Too
If you wouldn’t overpay for groceries, don’t do it for electricity.
- What Answers You’ll Get On This Page
Important Points
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While grocery prices spark frustration, energy bill increases often go unnoticed.
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Whether you’re on a ‘good’ rate or not, it’s highly recommended that you compare the market to ensure you’re not overpaying.
Here’s the thing: while you can’t really avoid buying groceries, you can avoid overpaying for electricity. The energy market is full of competitive offers, some of which are hundreds of dollars cheaper per year than the default or standing offer you could be on now.
Here’s Why We Ignore High Energy Bills
More than 1 in 10 households spend more than 6% of their income on electricity bills¹.
Unlike a sudden jump in the price of eggs or petrol, electricity prices don’t hit you at the checkout. They come in quietly, disguised in statements, direct debits, or emails that most of us barely read. And because there’s no loud price tag, it’s easy to miss just how much more we’re paying. With cheese being $11 or more for a block of Colby, and your local supermarkets had differing prices, which would you be more inclined to buy?
But here’s the thing: electricity prices have been climbing fast, and most of us don’t even notice until it’s too late. As of July, the Default Market Offer (DMO), which sets the maximum price energy retailers can charge customers on standing offers in NSW, QLD, and SA, increased by up to 9.7%. That’s an extra $71 to $228 a year added to your power bill, just for staying on the same plan.
You wouldn’t shrug off a $200 jump in your weekly grocery shop, so why are we silently copping it on our power bills? Electricity isn’t a luxury. It’s a basic essential, and these increases are quietly draining household budgets. With costs going up, it’s only natural to shop around and with the cost-of-living increases continuing to plague the nation, it’s become a necessity at this point.
The good news is you don’t have to be an expert to cut costs effectively. In the next section, we’ll walk you through exactly how to shop around and find a better deal.
1The Solution? Compare the Market and Switch
Did you know that over 80% of households could be paying more than they should for electricity²? If you’re part of the majority, you need to act now.
Step 1: Start with Where You Live
Energy prices aren’t the same across Australia. What you pay largely depends on your state or region, and which energy providers service your area.
So, a plan that looks great online might not actually be available to you.
Before you start comparing plans, make sure you’re using your full postcode or address so you’re only looking at options that apply to your specific location.
Step 2: Understand How You Use Energy and What Tariff You’re On
Once you know what plans are available, it helps to understand your usage. How and when your household uses electricity can affect what type of plan makes the most sense.
Take a look at your latest electricity bill. Most bills show your average monthly usage in kilowatt-hours (kWh), and some even break it down by season. Are your bills higher in winter or summer? Are you mostly home during the day or in the evening? Do you run energy-intensive appliances like dryers or air conditioners often?
Expert Tip
Use this formula to calculate your total annual bill:
(Average Annual kWh Usage × Usage Rate) + (Daily Supply Charge × Number of Days in a Year) = Total Annual Bill
Also, take a moment to check what tariff you’re currently on. It impacts how you’re charged for electricity. Some common tariff types you’ll see include:
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Single Rate: You pay the same rate all day, every day. It’s simple and works well if your usage is spread out.
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Time-of-Use: Prices vary based on when you use electricity. Cheaper during off-peak hours, but more expensive during peak times.
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Demand Tariff: Charges depend on your highest usage period in a day. If you tend to run several big appliances at once, this can get expensive quickly.
Knowing your usage and tariff can help you avoid signing up for a plan that looks cheap on paper but ends up costing more based on your household’s usage profile.
Step 3: Watch Out for Discounts and Fine Print
Many energy plans offer discounts, but they’re not all equal. Some discounts are guaranteed, meaning you get them no matter what. Others are conditional, which means they only apply if you meet certain requirements, like setting up direct debit as your payment method.
There’s also something called a “benefit period.” This is how long the discount or offer lasts, typically 12 months. Once that period ends, you could be automatically moved to a more expensive rate. That’s when people often notice their bill suddenly increasing, even if their usage hasn’t changed.
Expert Tip
Don’t just look at the discount percentage. Make sure you understand how long it lasts and what you need to do to actually get it.
Step 4: Don’t Set and Forget Your Plan
Electricity retailers regularly change their prices, offers, and plan details. A deal that was competitive last year might now be middle of the road, or even overpriced.
It’s a good habit to review your plan at least once a year, especially after July, when the Default Market Offer (DMO) is often updated.
If you’ve recently started working from home, had more people move in, or bought a new appliance like a reverse-cycle heater, it’s also worth seeing if your current plan still offers the best value.
It’s the same as grocery shopping. If you noticed an increase in prices at your favourite store, you’d shop around to find the lowest price, right? Taking a few minutes to check your current plan against others in the market can lead to bigger savings and more. So before another bill rolls in, it’s worth asking: is your current plan still the best one for your household?
If not, it might be time to switch.
Step 5: Choose How You Want to Compare
At this point, you have two options:
Option A: Compare plans online
Enter your postcode below and instantly view electricity plans in your area. Everything you need, from pricing to features, is displayed in one spot so you can easily compare and choose.
Option B: Let a professional do it for you
If you’d rather skip the research, we can take care of it for you. We compare plans across multiple energy providers in your area, look at your usage, and recommend a deal that suits your home and your budget.
It’s completely free, and if you decide to switch, we’ll manage the process for you, no disruptions, no long phone calls, no hassle.
Author
Benjamin TomBenjamin is a utility specialist passionate about creating informative content about the energy, internet, and solar markets. With extensive experience in the telecommunications industry, Benjamin drives our unique blog posts, articles, and reviews. He is focused on breaking down the technical jargon so our readers can better understand the telco market and industry. Whether he is comparing the latest internet deals or creating unique guides, Benjamin takes great pride in creating helpful, easy-to-read content.
Sources:
¹Energy Consumers Australia. (2023). Consumer energy report card: Understanding and measuring energy hardship in Australia. https://energyconsumersaustralia.com.au/our-work/surveys/consumer-energy-report-card-understanding-measuring-energy-hardship-australia
²Australian Competition and Consumer Commission (ACCC) – Inquiry into the National Electricity Market: December 2024 Report, https://www.accc.gov.au/publications/national-electricity-market-inquiry-december-2024
