Fixed Rate Energy Plans Explained

Advertisement

Power prices only seem to go one way, so whatever you can do to keep costs under control is surely worth considering. Most Australian energy providers offer headline-grabbing discounts, but discounts are only helpful in bringing costs down if you’re getting money off a competitive price in the first place. You’ll naturally be attracted to a deal promising 30% or more off your bills, but if you’re paying a higher base rate, will you really be any better off? It’s no wonder consumers often find energy plans overly-complicated and confusing.

However, out of the haze in recent years has emerged a different type of energy plan, allowing customers to easily compare offers from different providers, while also giving them a bit more certainty over costs. We’re talking about fixed rate (or fixed price) energy plans.

What are fixed rate energy plans?

Fixed rate energy plans are contracts that lock-in a set price to be paid for electricity or gas usage and supply for the duration of the term, usually one or two years. The energy companies tend to review their prices every 12 months (i.e. increase them) and fixed rate products allow customers to effectively ‘beat’ the price hikes by locking in the rate they are charged.

This means that the cents per kilowatt-hour rate you pay for electricity or gas will remain unchanged for the two years. In most cases, your daily supply charges (what you pay just to be connected to the energy network) will also be locked in.

Compare Electricity Plans

Fixed Rate Energy Plans

Now we know what fixed rate energy plans are and how they work, who actually offers them? The tables below show the current fixed rate published offers available from the providers on our database. We use a specific postcode in each state to calculate these estimated annual costs, so use our comparison tool above for specific pricing in your area. We show one product per provider, listed in order of price. These tables include sponsored products.

Fixed rate energy plans in VIC

Here are the current prices on our database for a typical three person household on the Citipower network in Melbourne. Use our comparison tool for a specific quote in your area. This includes sponsored products.

Brand Features Benefit Period Annual Cost**
Globird Logo

EasySave

  • No conditional discount
  • Plan requires direct debit with credit card and email billing
  • Fixed rates for 12 months
OngoingBenefit Period $1,124.54Annual Cost^^ Go To Site
Tango Logo

Home Select

  • No conditional discount
  • Fixed rates for 12 months
1 YearBenefit Period $1,130.45Annual Cost** Go To Site
Origin Logo

Low Rate Plan

  • No conditional discount
  • Fixed rates for 12 months
1 YearBenefit Period $1,189.50Annual Cost** More Details
AGL Logo

Essentials Plus

  • No conditional discount
  • Fixed rates for 24 months
2 YearsBenefit Period $1,194.94Annual Cost** More Details
EnergyAustralia Logo

Secure Saver

  • 22% pay on time discount off usage charge
  • Fixed rates for 24 months
2 YearsBenefit Period $1,246.87Annual Cost** Go to Site
View all electricity plans listed on Canstar Blue

Fixed rate energy plans in NSW

Here are the current prices on our database for a typical three person household on the Ausgrid network in Sydney. Use our comparison tool for a specific quote in your area. This includes sponsored products.

Brand Features Benefit Period Annual Cost**
Origin Logo

Basic Plan Information

Low Rate Plan

  • No conditional discount
  • Fixed rates for 12 months
1 YearBenefit Period $1,448.35Annual Cost** More Details
EnergyAustralia Logo

Basic Plan Information

No Frills

  • No conditional discount
  • Fixed rates for 12 months
1 YearBenefit Period $1,452.20Annual Cost** Go to Site
AGL Logo

Basic Plan Information

Essentials Plus

  • No conditional discount
  • Fixed rates for 24 months
2 YearsBenefit Period $1,536.61Annual Cost** More Details
View all electricity plans listed on Canstar Blue

Fixed rate energy plans in QLD

Here are the current prices on our database for a typical three person household on the Energex network in Brisbane. Use our comparison tool for a specific quote in your area. This includes sponsored products.

Brand Features Benefit Period Annual Cost**
Origin Logo

Basic Plan Information

Low Rate Plan

  • No conditional discount
  • Fixed rates for 12 months
1 YearBenefit Period $1,420.08Annual Cost** More Details
AGL Logo

Basic Plan Information

Essentials Plus

  • No conditional discount
  • Fixed rates for 24 months
2 YearsBenefit Period $1,441.08Annual Cost** More Details
EnergyAustralia Logo

Basic Plan Information

No Frills

  • No conditional discount
  • Fixed rates for 12 months
1 YearBenefit Period $1,466.38Annual Cost** Go to Site
View all electricity plans listed on Canstar Blue

Fixed rate energy plans in SA

Here are the current prices on our database for a typical three person household on the SA Power network in Adelaide. Use our comparison tool for a specific quote in your area. This includes sponsored products.

Brand Features Benefit Period Annual Cost**
Origin Logo

Basic Plan Information

Low Rate Plan

  • No conditional discount
  • Fixed rates for 12 months
1 YearBenefit Period $1,980.12Annual Cost** More Details
AGL Logo

Basic Plan Information

Essentials Plus

  • No conditional discount
  • Fixed rates for 24 months
2 YearsBenefit Period $2,161.32Annual Cost** More Details
EnergyAustralia Logo
Basic Plan Information

No Frills

  • No conditional discount
  • Fixed rates for 12 months
1 YearBenefit Period $2,285.99Annual Cost** Go to Site
View all electricity plans listed on Canstar Blue

Are fixed rate plans different to fixed cost plans?

Yes, very much so. While fixed rate energy plans give customers certainty over the price they will be charged for power, they do not provide any certainty over actual costs. No household uses the exact same amount of electricity or gas every month, so the amount you need to pay will continue to vary from one billing period to the next. Fixed cost energy plans, on the other hand, provide households with a specific price to be paid every billing period, regardless of how much electricity or gas they actually use. So you can either lock-in a price, or a cost.

Who offers fixed rate and fixed cost plans?

A handful of electricity providers offer fixed rate plans, including AGL, Origin and EnergyAustralia. In most cases, these deals will be offered across all states the retailer serves. Smaller retailers like Tango Energy and GloBird Energy also offer fixed rate plans in Victoria.

Fixed cost plans are a little different. While Origin has offered a fixed cost plan in the shape of Predictable Plan for some time, a handful of other retailers now offer prepaid power deals which are effectively the same thing, but with one crucial difference. In the case of prepaid power plans, retailers like Powershop, Amaysim and Elysian Energy allow customers to pre-purchase a specific amount of electricity to use each billing period (which means you know how much you are paying from one month to the next), but unlike Predictable Plan from Origin, if you go over the agree prepaid amount, you will be charged extra for your remaining usage.

What are the pros and cons of fixed rate energy plans?

Every energy plan comes with its advantages and disadvantages. Ultimately, you still need to pay for the electricity and gas you use – there’s no getting away from that. So what are the pros and cons of fixed rate energy plans?

Pros

  • While most energy plans come with variable rates (which can change at the retailer’s discretion), fixed rate plans mean you lock-in charges for a set period, avoiding any price increases.
  • Fixed rate plans are simple and easy to understand – you are given set charges for energy usage and supply, nothing more and nothing less. This makes them easy to compare because you simply need to assess the published rates of each provider in your area.

Cons

  • Much like fixing a home loan for a number of years, locking in energy charges could mean you pay a higher rate for power than you would on a variable rate plan.
  • While you may receive a sign-up credit on your first bill, fixed rate plans do not offer any additional discounts.
  • As two-year contracts, some fixed rate energy plans come with exit fees, meaning that leaving for a better offer will cost you.

With the introduction of fixed cost energy plans, it will be interesting to see whether fixed rate plans become more or less popular. If you’re trying to find the best deal on your electricity or gas, the best thing you can do is compare both types of offers and see which works out cheaper.

Compare Electricity Providers

Share this article

News & Tips

Sign up to receive more news like this straight to your inbox

By subscribing you agree to the Canstar Privacy Policy.

Thanks for signing up!

Good things are coming your way.

Advertisement