KEY POINTS
- Depending on where you live and the plan you’re on, you could save up to $394 per year by switching electricity providers.
- Regularly comparing and switching energy plans lets you take advantage of sign-up benefits like discounts and fixed rates.
- Your energy bill should indicate how your energy usage stacks up compared to other Aussie households. If it’s above average, there are a few things you can do to bring it down.
With electricity prices on the rise, Aussies are on the look out for any way they can cut back on their energy bills. While energy-saving hacks like buying more efficient appliances have their place, one of the quickest ways to find big savings is to compare and switch to a cheaper energy plan.
Switching can take as little as 15 minutes to do online, and as per our table below, could result in considerable savings if you move from an average-priced plan to the lowest in the market.
How to find a cheaper energy plan
- Check your current plan’s terms and contract to see if there are any exit costs, such as termination or disconnection fees.
- Think about how and when you use energy. Are there times of day when you use much more? Do you have electricity-draining appliances such as a pool pump or heated floors? Knowing how you consume energy can help you figure out the tariff type that will save you the most money.
- Compare energy deals at Canstar Blue using your postcode. You’ll want to look at:
- The average annual cost and how it compares to the reference price in your area—ideally, you want a plan that’s much less!
- The plan’s daily supply charge and usage rate in kilowatt hours (kWh), and if these rates are variable or fixed.
- If there are any discounts offered, and the requirements to qualify for them.
- If you have solar panels, the solar feed in tariff (FiT).
- Any other offers or inclusions, such as new customer discounts or credits—just make sure these aren’t covering for higher usage or supply rates.
- Once you’ve found the right plan, follow the link in our tool if available, head to the provider’s site or give their customer service number a call to sign up.
- Unless you’re moving house, you won’t need to contact your old provider; they’ll simply carry out a meter read and send you your final bill.
- Look out for a welcome pack from your new provider and confirmation that your service has changed.
- Your new plan will list a ‘benefit period’ where conditions such as discounts, memberships or fixed rates apply—this is usually 12 months. Make sure to review your plan before this period ends: if you set and forget, you may be moved to a less competitive standing offer after the benefit period expires.
Potential savings from switching
Based on our research, here is an idea of how much you could potentially save when you move from a standard electricity plan to the lowest in the market.
Keep in mind that this is based on the price difference between what the average Aussie pays and the estimated lowest price available. It’s possible that you’re on a plan that’s charging you more than the average, meaning you could stand to save even more by switching.
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| Potential savings from switching from average annual cost electricity plan to lowest | |||
|---|---|---|---|
| Average annual cost | Lowest annual cost | Potential savings | |
| Sydney | $1,639 | $1,348 | $291 |
| Melbourne | $1,366 | $1,036 | $330 |
| Brisbane | $1,900 | $1,567 | $333 |
| Adelaide | $2,120 | $1,731 | $389 |
| Canberra | $2,192 | $1,873 | $319 |
| Hobart | $1,302 | $1,265 | $37 |
Source: Canstar Blue – 31/07/2024. Based on single rate electricity plans on Canstar’s database; excluding solar-only plans. One product shown per distribution network. Annual costs calculated based on the estimated lowest possible price a representative customer would be charged in a year, assuming all conditions of discount offered (if any) have been met. Representative customer based on the reference usage for NSW, VIC, QLD, ACT, and SA (per Victorian default offer for VIC, ICRC for ACT, and AER for others) or the median usage in the Office of the Tasmania Regulator’s report, Typical Electricity Customers in Tasmania 2022 for TAS
How to reduce your energy usage
If you’re already on the cheapest plan, or not willing to make the switch, you could still stand to save by reducing your energy usage.
Your previous energy bills will typically indicate how your energy use stacks up by charting your usage over time and comparing to other households in your area. Installing a smart meter or an energy usage monitor is also a good way to identify and understand your electricity usage habits.
Whether it’s higher than average or not, some ways to lower your electricity and/or gas usage include:
- Check your heating and cooling costs: This can account for up to 50% of your electricity use, so make sure you have temperatures set at the most efficient range for the climate and season. You should also make sure your home is properly insulated.
- Reduce hot water use: Moving to a continuous flow/instant hot water system can improve your energy efficiency, and installing low-flow taps or shower heads can reduce your water usage. Also consider using cold water where possible, such as washing clothes.
- Check your appliances: Older appliances are less energy efficient, and leaving appliances on standby when not in use can contribute to your electricity usage.
- Install solar: If you’re able, installing rooftop solar is a long-term investment that can heavily reduce your reliance on the electricity grid, particularly if you add a solar battery.
Compare cheap electricity plans
Here are some of the cheapest published deals from the retailers on our database that include a link to the retailer’s website for further details. These are products from referral partners†. These costs are based on the Ausgrid network in Sydney but prices may vary depending on your circumstances. This comparison assumes general energy usage of 3900kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.
Here are some of the cheapest published deals from the retailers on our database that include a link to the retailer’s website for further details. These are products from referral partners†. These costs are based on the Citipower network in Melbourne but prices may vary depending on your circumstances. This comparison assumes general energy usage of 4000kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.
Here are some of the cheapest published deals from the retailers on our database that include a link to the retailer’s website for further details. These are products from referral partners†. These costs are based on the Energex network in Brisbane but prices may vary depending on your circumstances. This comparison assumes general energy usage of 4600kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.
Here are some of the cheapest published deals from the retailers on our database that include a link to the retailer’s website for further details. These are products from referral partners†. These costs are based on the SA Power network in Adelaide but prices may vary depending on your circumstances. This comparison assumes general energy usage of 4000kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.
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