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 and energy 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, here’s top tips on how to change your electricity provider.
On this page:
- Why should I change my energy provider?
- Can I change energy providers in my state or territory?
- How to change energy providers
- What to look for when switching energy providers
- Is it hard to change energy providers?
- Is switching energy providers a good idea?
- Changing energy providers: Frequently asked questions
Why should I change my energy provider?
There’s plenty of reasons to regularly review your energy plan, primarily being that it’s the best way to ensure you’re always on a competitive deal. Generally, some of the main reasons you may want to switch energy providers include:
1. You want a cheaper-priced energy plan
One of the quickest and easiest ways to cut your power bills is simply to move to a plan with lower rates. This is especially true if you haven’t compared plans in more than 12 months, as you may potentially be on a more expensive default offer plan.
2. You’re moving house
Moving home is a great incentive to also change your utility providers, even if you’re staying in the same postcode. However, if you’re moving cities or even states, you’ll definitely want to compare energy plans and pricing for your new address. This is because prices, plans and even available providers may differ when compared to your previous residence.
3. You’re installing solar panels
If you’re adding solar panels to your home, or moving to a building with panels already in place, you’ll want to find an electricity plan with a good solar feed-in tariff to help you get the most from your system.
4. You’re interested in green, renewable or carbon neutral energy options
Plenty of energy retailers now offer plans with included or add-on green options, such as renewable energy or carbon neutral-certified products.
5. You’d like to bundle energy with other products
Many Aussies use the same energy providers for both electricity and gas, but several retailers also offer telco options, including home internet and mobile phone services. Customers can potentially earn bundling discounts for consolidating their utilities products, so this could be something to consider if you want a simplified bill.
Can I change energy providers in my state or territory?
If you’re keen to change energy providers, your next step is determining if you’re actually able to switch retailers in your area.
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.
| State | Can I switch electricity providers? | Can I switch gas providers? |
|---|---|---|
| New South Wales | Yes | Yes |
| Victoria | Yes | Yes |
| Queensland | Yes (south-east QLD only) | Yes (south-east QLD only) |
| South Australia | Yes | Yes |
| Western Australia | No* | Yes |
| Tasmania | Yes | Yes |
| Australian Capital Territory | Yes | Yes |
| Northern Territory | Yes* | Yes* |
*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 to change energy providers
Whether you’re changing electricity or gas providers, switching energy retailers is generally easy. Here’s a quick checklist to guide you through the process.
Keep in mind that some energy retailers may handle the switching process slightly differently to the below steps.
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. Look for costs such as termination fees for contracts, disconnection and new connection fees, move in/move out meter read fees and anything else that may apply to your circumstance.
2. Determine your energy needs
Think about your energy consumption habits. Do you have a pool or use air conditioning frequently? Are there certain times of day when you’re using much more energy? By understanding your usage requirements, you can better identify which deals are best suited to your household.
3. Compare energy deals in your area
Find out which plans are the most competitive in your postcode. Consider the overall value, including energy supple and usage rates, any discounts, 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.
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 3911kWh/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 4613kWh/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 4011kWh/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.
4. Choose your plan and switch!
Choose your preferred energy retailer based on your needs and usage by using our free comparison tool. You can filter your search results by brand, price, value score and more.
Once you’ve picked your new plan, follow the link on our tool if available, or head to their site separately. Complete the sign-up process online or by phone, and you’re all set.
5. Your old provider may contact you
Once your old provider receives notice that you’re leaving, they may get in touch to offer you a better deal to stay. It’s up to you whether you stick to your guns or change back – you’ll have a 10-day cooling off period with your new provider, so you can cancel without penalty.
6. Receive a welcome pack from your new provider
You should receive a welcome pack either in the mail or online confirming your payment information and account details. This should also include all the details, terms and conditions of your new plan.
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, and all other bills going forward, 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 now able to log into your account and activate any features included in your new plan.
10. Don’t just set and forget!
Congratulations on switching to a great new energy deal! Energy rates and plans change frequently, so remember to regularly compare your options to make sure you’re not missing out on a more competitive deal elsewhere.
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What to look for when 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 (credit card, direct debit, etc.), and if your electricity or gas rates are fixed for a 12 or 24-month period.
Is it hard 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.
With more than 30 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, 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.
Is switching energy providers a good idea?
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. If you’re reluctant to leave your current provider, you may be in a position to negotiate a better energy deal with your retailer. It could pay off to tell your provider of your intention to switch ahead of time, to see what you may offered as an incentive to stick around.
That being said, if change is what you’re after and you’ve done your homework, you could save a significant amount of money each year by changing energy providers. 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.
Changing energy providers: Frequently asked questions
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.
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.
The main cost to keep an eye out for is any exit fees that may apply, if you break a contract with your current energy provider. Again, find out if you’re free to switch providers ahead of time if you’re concerned about exit fees. You may also be subject to other one-off fees, such as disconnection and connection costs or move-in/move-out meter reads. Otherwise, comparing and switching electricity or gas plans is completely free.
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.
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.
Original Author: Jared Mullane
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