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If you can shave an hour off your heater use each day, lowering it from 4 to 3, you'll save 25% on your heater's energy use over winter. Using our figures from the previous section, that will drop your bill from $183.60 to $137.70, saving you about $46.
The lower you set your unit's thermostat, the harder it has to work to cool the air. Raising the target temperature to 22 degrees from 20 degrees can cut 20% off your energy use, and your power bill. Again using our previous figures, that's a drop from $250 to $200, a saving of $50.
Using figures from the ACCC's September 2020 energy report, residential customers on market offers are paying around 17% less than those on standing offers. Over a year, this equates to $219 of savings for people on market offers that consume about 4,000 kWh of energy.
Based upon a report from Australia's Department of Industry, Innovation and Science, standby power use can cost the average household around $100 a year. Switching devices like air conditioners, game consoles and printers off at the wall instead of leaving them on in the background, you could cut down your annual energy bill.
Here's what we found when we crunched the numbers.
What | Additional cost to your bill | Details |
---|---|---|
Winter heating | $183.60 | Winter heating cost for a basic panel heater |
Aircon in summer | $250 | Summer cooling costs on a 5kW air conditioner at 20 degrees |
Not switching providers | $219 | The difference between a "standing offer" and a "market offer" over a year |
Standby electricity costs | Up to $100 | Leaving devices on passively, rather than switching them completely off |
According to Finder's data, the average basic panel heater uses about 1.7kW of energy per hour. Assuming you use that heater for 4 hours per day for all 90 days of winter, you'll have consumed a total of 612kWh of energy.
To convert that into the annual cost listed in the table, we assume that energy costs $0.30/kWh on average. Of course, that will vary depending on your plan and where you live.
612kWh (total heater energy use) x $0.30/kWh (usage rate) = $183.60 over winter
Some heaters are more or less efficient than others, so it depends on the type of heater you have. Under the same conditions, the average tower heater might cost you $213.60 for the winter, or an oil-filled column heater might drop your bill to $167.40.
Based on Finder's data, a 5kW rated air conditioner will consume 9.26kWh of electricity per day, if you run it for 4 hours at 20 degrees Celsius. Assuming you're running it every day during 30 degree summer afternoons, that adds up to 833kWh across the season.
If we assume energy costs $0.30/kWh, your total bill will then be what we see in the table:
833kWh (total aircon energy use) x $0.30kWh (usage rate) = $250 for summer.
"Standing offers" are the default energy plan you get put on if you don't purchase a specific energy plan, where you'll pay a government-regulated rate for your energy. "Market offers" are plans that you buy from a retailer like Origin Energy or AGL, which are usually cheaper than standing offers.
How much cheaper? A 2020 energy market report by the ACCC stated that the median price paid on market offers was 5.5c/kWh (17%) lower than on standing offers for residential customers. This is a saving of $219/year for the average residential customer.
The median effective price paid by residential market offer customers across the four regions was 5.5 c/kWh or around 17 per cent lower than residential standing offer customers, and 10.7 c/kWh or around 25 per cent lower in the case of SME customers (figure 2.1). This equals savings of $219 a year for a residential customer using 3,988 kWh from the grid.
Even when you're not actively using your appliances, they might be consuming power. Leaving something on standby rather than unplugging it or turning it properly off can use a considerable amount of power.
Devices can be in passive standby (off, but able to be activated by a remote control), or active standby (switched on, but not in use). Here's an example of standby power use for a handful of common appliances:
Appliance | Hourly standby power use (passive) | Hourly standby power use (active) |
---|---|---|
Game console | 5.4W | 44.9W |
Television (LCD) | 3.5W | N/A |
Laser printer | N/A | 8.8W |
Set-top entertainment box | 15.8W | N/A |
Total yearly energy use on standby | 216kWh | 470kWh |
Cost (Annual) | $64.80 | $141 |
Assuming you leave these appliances on standby all year and power costs 30c/kWh, just these few add up to $64.80 on passive standby, or $141 on active standby.
Apart from turning devices off, you can also invest in appliances with a higher energy star rating and efficiency to lower their power consumption.
The first step to managing your energy bill is to understand where the costs are coming from, so you can start working to reduce them. Here are some of the main factors that affect your bill:
The Finder app can send energy savings tips straight to your phone
Maddie was paying a bit too much for energy...
$500 a year too much...
Madeleine Burke had been with the same provider for the last 6 years.
And while she was paying a good price at first, her bills suddenly "ballooned up by around 40%" a few years ago.
And with this year's COVID-19 restrictions forcing Maddie to spend more time at home, her rising bill was no longer something she could ignore.
Sound familiar?
A lot of plans have what is called a 'benefit period'.
This means you get a discount for a certain period of time (usually 12 months), after which the price suddenly changes and has you scratching your head like Maddie was.
So back to the $500.
That's how much Maddie was able to save per year once she compared & switched to a cheaper plan.
Her original bill was $564 over 90 days.
The price on a new plan that she was able to find by comparing on Finder was $439.
$564 - $439 = $125 savings per bill.
In a year that's $500.
Quarterly | Annual | |
---|---|---|
Original bill | $564 | $2,256 |
Estimated bill from new provider | $439 | $1,756 |
Estimated savings | $125 | $500 |
It only took her a few minutes to sign up and make the switch. Then it was completely hands off as her new provider handled everything.
The number you see printed on your electricity bill is actually composed of a few different costs added together. There are three contributors:
Changes that you make to your own energy consumption will only affect variable rates. However, if households as a whole were to use less energy, network costs would drop since there would be less need for upgrades to support higher peak demand.
Do these charges stay the same?
Your bill could get more expensive over time. This means your rates have either gone up or they weren't that great to begin with. It's a good idea to compare often and consider making a switch.
Implementing just a few energy-saving measures can save a family hundreds of dollars off their bills each year. For example, switching off a games console when not in use could save up to $1931 a year, while installing a super-efficient showerhead could not only save $3151 in water bills but a bunch of electricity too by not having to heat excess water. Small changes add up.
1. https://www.energy.gov.au
So how can you save? Here are three steps to starting your energy saving journey.
Standing offers vs Market offers
You often don't need to settle for what the energy company is offering; there are ways to negotiate a better energy contract.
Here's some tips to ensure you get a good deal:
As long as you don't live in Tasmania, the Northern Territory, Western Australia or outside of south-east Queensland, you will have a choice of energy retailers. Even if you can't pick between providers, you'll have a choice of contracts with different types of rates.
You can use Finder's online energy comparison tool to help you find the providers and plans best suited for you, wherever you live. Remember to be careful when choosing a contract — if it doesn't match your lifestyle and needs, you could end up paying more than you would otherwise.
Finally, you can shorten your billing cycle to pay monthly. This won't drive down costs, but it can help you avoid large tri-monthly shock bills and help you budget more effectively.
Once you have a basic picture of your energy consumption, including when and how you use the most energy, you can go deeper into managing it:
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.
Here are some deals from retailers on our database that include either a link to the retailers website for more information or to a form from an energy broker to enquire for more information. Prices are based on a residential customer in Brisbane (Postcode: 4000) who consumes 4,600 kWh a year on a single rate tariff in the Energex network. We show one plan per provider and the estimated price includes conditional discounts (if any). Any plans with special eligibility requirements are excluded from this list. Your actual bill may vary, depending on your usage. Always check the provider's site before applying.
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.
Here are some deals from retailers on our database that include either a link to the retailers website for more information or to a form from an energy broker to enquire for more information. Prices are based on a residential customer in Adelaide, South Australia (Postcode: 5000) who consumes 4,000 kWh a year on a single rate tariff in the SA Power Network. We show one plan per provider and the estimated price includes conditional discounts (if any). Any plans with special eligibility requirements are excluded from this list. Your actual bill may vary, depending on your usage. 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.
Standby power is the electricity that's consumed by your appliances that aren't being used or when they are on 'standby'.
Standby power accounts for as much as 10% of overall household electricity usage and while most appliances only draw a small amount of energy on standby, the costs add up. Your digital home appliances alone could be costing you as much as $171.27 a year. Luckily, reducing your bill is as easy as flicking a switch.
Power's most expensive when everyone else is using it, usually from 7am-10pm daily. Here are two ways to profit off consuming power when no one else is:
Aside from making sure you're on a better value plan, there are a few things you can do to ensure you save on energy during the COVID-19 pandemic.
If you are on a "time of use plan" – as in, your provider charges you more during peak periods and less during off-peak periods – plan your energy use around this.
For example, do your washing early in the morning or late at night (off-peak) if possible, or at the very least, avoid doing it during the evening.
As an example, here are the off-peak hours for customers in the Ausgrid region (winter):
Period | Time | Rates |
---|---|---|
Peak period | 5pm to 9pm | Most expensive |
Shoulder period | 7am to 5pm | In between |
Off-peak period | 9pm to 7am | Least expensive |
Picture: GettyImages
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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