Switching Energy Providers

Fact Checked

These days, Aussies have a mountain of reasons to shop around for a new energy provider, particularly as market deregulation has given customers the freedom to get up and leave if they’re unsatisfied with their current plan or retailer. Although many households may ponder switching energy companies at some point, there’s usually a bit of confusion around how long the process takes, as well as the fees involved.

At Canstar Blue, we aim to clear the air and demystify any common misconceptions around changing electricity or gas providers. So, whether you’re moving house and seeking a fresh start, or you want to get a feel for what else is out there, reading this guide is your best bet to finding maximum value in your next energy plan.

How to switch energy providers

1. Review your current plan’s exit fees
2. Establish your energy needs
3. Compare deals in your area
4. Switch energy providers
5. Your old energy provider may contact you
6. Receive a welcome pack from your new retailer
7. A final meter reading will take place
8. Your new energy provider will be in touch
9. Gain access to any special features of your plan
10. Don’t just set and forget

Keep in mind that some energy retailers may handle the switching process slightly differently to the above.

1. Review your current plan’s exit fees

There may be hidden breakaway fees attached to your electricity or gas plan. This information will be listed in the fine print of your contract or relevant product information documentation.

2. Establish your energy needs

Think about your energy consumption habits. Do you have a pool or use air conditioning frequently? By understanding your usage requirements, you can better identify which deals are best suited.

3. Compare deals in your area

Find out which plans are the most competitive in your postcode. Consider the overall value, including energy rates, discounts, value-adds and other incentives like customer reward programs. 

If you’re in the market to switch electricity providers, we’ve listed a some of the cheapest deals on our database to get you started.

4. Switch energy providers

Choose your preferred energy retailer based on your personal circumstances by using our free comparison tool. Filter your search results by brand, price, value score and more.

5. Your old provider may contact you

With so much competition in the market, your old energy provider may get in touch to offer you a better deal to stay.

6. Receive a welcome pack from your new provider

You should receive a welcome pack either in the mail or online asking for payment information and account details.

7. A final meter reading will take place

Your old energy provider will carry out a meter reading to arrange a final bill. This process now takes only two business days to complete.

8. Your new energy provider will be in touch

Once your account has been taken over by your new electricity provider, you’ll be notified and your next bill will be from them.

9. Gain access to any special features of your plan

Whether it’s frequent flyer points or a customer rewards program, you’ll be able to log into your account and activate any features.

10. Don’t just set and forget

Remember to regularly compare your options because new deals could become available!

Is it difficult to change energy providers?

If you’ve decided to part ways with your existing electricity or gas provider, switching is quite a simple process. To change energy providers, generally all you need to do is contact the company you’re looking to switch to, and they will organise the transition from your old retailer on your behalf. Just be aware that some energy companies may wish to conduct a credit check before signing you up.

You can check your credit score for free here

With more than 20 electricity and gas companies currently retailing across Australia, your options as a consumer are plentiful. What’s even better is that energy providers will fight for your business as the market is so competitive, so long as you’re willing to be a little proactive. If switching energy isn’t on your to-do list, it may be worth simply calling your energy provider and asking for a better deal. Who knows, you could be paying more for energy now than when you first signed up, and you don’t even know it.

What to think about before switching energy providers

Before signing up to a new energy retailer, you should do a bit of research and work out which features are most important to you. Here are five things you should keep an eye out for:

• Usage charges: The usage rate you are charged for consumption of electricity or gas at your home. Usage rates are charged in cents per kilowatt hour (kWh) for electricity, or cents per megajoule (MJ) for gas, and can vary significantly between retailers.
• Supply charges: The supply rate you are charged for delivery of electricity or gas to your home. Supply charges will vary depending on the energy retailer and where you live.
• Connection fees: Hidden fees for connection, disconnection and exiting a contract from an energy provider. These fees tend to be tucked away in the fine print of your energy plan, but can quickly add up if you’re not careful.
• Customer incentives: Conditional discounts, bill credits, sign-up offers and rewards programs are all ways that energy providers compete for your business. Just make sure these offers aren’t concealing higher usage and supply rates.
• Customer service: Whether or not you have online access to your account 24/7, trading hours of the call centre or if it’s an Australian-owned company, are all aspects to consider when comparing energy providers.

Furthermore, you may want to investigate other features, including the billing cycle (i.e. billed monthly or quarterly), payment options, and if your electricity or gas rates are going to be locked into a contract of 12 or 24 months.

Can I change energy providers in my state or territory?

While Aussies in some parts of the country are able to switch energy providers with ease, others are not so lucky. This is due to the market being regulated in particular areas, meaning that households do not have the option of choosing their electricity or gas retailer.

Take a look at the table below to see if you can switch in your area.

*There are two electricity providers in WA but they operate in different areas and customers are not able to switch. The WA gas market is competitive. Customers may be able to switch in regional QLD depending on location. While the Northern Territory energy market is now open to competition, government-owned Jacana Energy is still the dominant supplier for electricity and gas, and customers need an interval meter in order to switch retailers.

How long does it take to switch energy providers?

Switching to a new electricity provider will take two business days. The handover process between retailers has been sped up under new rules that aim to benefit consumers. Prior to 1 October 2021, switching could take up to 90 days as customers needed to wait for their meter to be read.

Previously, bill-payers had to wait for their energy distributor to carry out a final meter reading but are now able to switch much quicker thanks to the use of an estimated bill. For gas customers, your energy distributor will still carry out a final meter reading which is then sent onto your new gas retailer – this way your final bill should be accurate and up to date.

It’s always a good idea to double check the details with your new retailer when switching. Once your account information has been switched over your new energy retailer, your next bill should be from the new company you’ve signed up to. Keep in mind that you’ll still need to pay a final bill from your existing provider and settle any outstanding amounts.

When can you change energy providers?

Customers can change energy providers at any time of their contract term, but they may accrue exit fees for doing so. That’s why, if you’re serious about switching, make sure you pay attention to the fine print or you could be stung with hidden fees that could have you second guessing your decision to change providers.

What happens when you switch energy providers?

Normally there isn’t much to do after you’ve switched to a new energy provider and most of the paperwork is handled on your behalf, provided you’ve given them permission to do so. If for any reason you feel as if something isn’t quite right, contact your new provider and they should be able to provide you with an update.

What if I change my mind after switching?

If you change your mind after signing up to a new energy provider, you will have a 10-day cooling off period where you can cancel your plan. All you need to do is contact your energy retailer within this time frame and inform them that you would like to cancel the agreement. If you change your mind after the cooling off period, you may be charged an exit fee.

Is switching energy companies right for you?

Whether you’ve already made up your mind to switch or you’re on the fence, changing providers isn’t the only option on the table. In fact, picking up the phone and negotiating a better deal with your current retailer could be your answer to getting the best bang for your buck. That being said, if change is what you’re after and you’ve done your homework, you could very well walk away with some savings.

With so much competition in the energy space, you may be surprised by what’s on offer out there. To put your mind at ease, use our electricity comparison tool to review a range of quotes based on your postcode and circumstances.

Image credits: Suradech Prapairat/Shutterstock.com, Thinglass/Shutterstock.com, JBOY/Shutterstock.com, Artem Oleshklo/Shutterstock.com
Original Author: Jared Mullane