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To help you navigate the world of energy discounts in pursuit of the best deal, we've put together a short guide with everything you need to know.
While the sheer number of energy discounts out there from different providers may seem complicated, they mostly fall into just a few different categories. Usually, you'll be looking at a conditional discount, something which only applies when a certain condition is met. Here's what common discount types exist:
Here are the type of discounts various brands offer in NSW as an example.
Discount type | Example | Brands that offer the discount |
---|---|---|
Bonus credits | $75 Credit for online sign up Up to $40/$240 in bonus credits p.a. Sumo Saver Credit | AGL AGL Sumo |
Pay on time discounts | Pay on time discount on total bill Pay on time discount on total usage | 1st Energy, Globird Energy, Sumo, Red Energy, Diamond Energy Elysian Energy, Enova Energy, Future X Power, 1st Energy |
Direct debit discounts | Get an xx% discount for paying with direct debit. | CovaU, Diamond Energy, ActewAGL, Globird Energy, Origin Energy |
Guaranteed discounts | Guaranteed discount on total bill Guaranteed discount on total usage | EnergyAustralia, Powerdirect ActewAGL, Discover Energy, Origin Energy, CovaU |
Other special discounts | Mega Pack Early Bird Discount Free Power Bonus | Powershop, Powershop Australia Lumo Energy Energy Locals |
Last checked December 2019.
Some providers will offer their 'discount' as credits. So for example, Sumo Energy offers:
$100 in credits on your electricity account over 24 months if you pay on time.
One thing to be aware of however is the terms and conditions when it comes to credits. In the Sumo Energy example, they will pay back their credits every third monthly bill.
The amount you get back may also vary based on the type of discount you are attempting to receive e.g., Bundle, Pay on time, etc.
The information above was last checked as correct on October 2019.
Discounts are appealing because everyone likes to feel like they've saved, but you should never purchase a plan based on discounts alone. What matters most is the rates (at which you're being charged for electricity) that the company is offering. This is for two reasons.
First, some discounts (commonly phrased as 'benefits') are temporary. A company may offer you a hefty discount when you sign up, bringing what you're paying down below a competitor with a lower base rate. However, this decrease could evaporate 12 months later, leaving you stuck in a plan where you're now paying way above what you could get from another provider.
Remember, you'll need often meet the condition to unlock the discount. This penalises you (and sometimes quite a lot) if you don't meet the conditions.
Consider whether you'll be able to always meet the condition. If not, you might find yourself paying lower rates for a while and then seeing your rates skyrocket up above competitors because you missed a payment, for example. It's entirely possible you're better off with another plan without the conditional discount.
...retailers often advertise large conditional discounts and many consumers end up paying a much higher price when those conditions are not met. These 'penalties' provide an excessive benefit to retailers. - ACCC, 29 March 2019
And as usual, check the rates. You might be paying a low flat fee for your electricity, but have high usage and supply rates. Deals may not always be as good as they appear at first.
The reference price is a benchmark price set by the Australian Energy Regulator to help make understanding prices easier in New South Wales, South Australia and South-East Queensland.
It's the highest a retailer can charge a customer on a standing offer.
The state of Victoria uses a slightly different benchmark called the Victorian Default Market (VDO) offer.
You'll often see the reference price mentioned with discounts to make it easier for you to understand how much you are saving.
Check out the discounts from Origin Energy.
Based on the AER annual model usage in the Ausgrid network, the AER reference price is $1,462 / year.
Electricity charges may have changed in VIC, NSW, QLD, SA, ACT, and TAS on 1 January 2021 and could also change on 1st February. Our pricing and estimates below may not take these possible changes into account.
Please confirm plan details with the provider before making a decision.
Based on the general usage in the CitiPower network the VDO reference price is $1,270 / year.
Electricity charges may have changed in VIC, NSW, QLD, SA, ACT, and TAS on 1 January 2021 and could also change on 1st February. Our pricing and estimates below may not take these possible changes into account.
Please confirm plan details with the provider before making a decision.
Based on the AER annual model usage in the Energex network, the AER reference price is $1,508 / year.
Electricity charges may have changed in VIC, NSW, QLD, SA, ACT, and TAS on 1 January 2021 and could also change on 1st February. Our pricing and estimates below may not take these possible changes into account.
Please confirm plan details with the provider before making a decision.
Disclaimer: The following price estimates are a general guide only. Prices are based on a residential customer in South Australia who consumes 4,000 kWh a year on a single rate tariff in the SA Power Network. Prices last checked on December 2019 and are subject to change. Always check the provider's site before applying.
Based on the AER annual model usage in the SA Power Networks network, the AER reference price is $1,832 / year.
Electricity charges may have changed in VIC, NSW, QLD, SA, ACT, and TAS on 1 January 2021 and could also change on 1st February. Our pricing and estimates below may not take these possible changes into account.
Please confirm plan details with the provider before making a decision.
Important notes: The estimated price we show by default is based on a single rate tariff. On your bill this might be known as a 'peak tariff', 'peak only' or an 'anytime tariff'. There are other tariff types available to customers and you may need to contact your provider if you are on these tariffs:
The price estimate should not be used as an official quote, but an indication of what your costs may be on the plan. It varies based on whether you provide us with your bill details. You can learn more here.
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