When it comes to electricity plans, bigger is not always better. While energy retailers have been using big discounts to attract new customers for years, it seems the tide is slowly turning, with most now promoting plans with no discounts to entice consumers to switch.
Confused? It’s understandable. Especially when you consider that some 0% discount electricity plans are now working out much cheaper than plans with large conditional discounts – even when both plans come from the same retailer! How can one plan with no discount be cheaper than one with a 20% conditional discount when both come from the same provider? It’s easy really – it’s called marketing.
Since July 2019, tier one electricity providers EnergyAustralia, AGL, Origin have all revealed new products promising huge discount savings of… 0% alongside a few power plans which do include some unconditional discounts. This is alongside more than 20 providers hopping onto the same bandwagon. So what gives?
Compare Electricity Plans
Which energy providers offer plans with no discounts?
- Alinta Energy
- Amaysim Energy
- Click Energy
- Dodo Power & Gas
- Elysian Energy
- Energy Locals
- GloBird Energy
- Lumo Energy
- Mojo Power
- Momentum Energy
- Origin Energy
- Pooled Energy
- Red Energy
- Simply Energy
- Sumo Power
- Tango Energy
Should you go with an electricity plan that has no discount?
Electricity plans with no conditional discount can work out cheaper overall than some plans with big conditional discounts. It’s best to base any decisions you may make on how these discounts land your electricity plan in comparison to the Reference Price or VDO in Victoria.
Also consider that some retailers will be using no-discount, ‘simplified energy’ as their main marketing tool, in the same way that providers have been using those big discounts for several years. There’s nothing wrong with this per se, but it’s worth keeping in mind.
The one guaranteed good thing about no-discount plans, however, is that they remove the potential trap of missing out on conditional discounts and being left with much higher bills as a result. They may not always be as great as they seem, but if you often struggle to pay bills on time – meaning you could lose a discount – they can be advantageous.
The only sure-fire way to see just how these different types of plans compare is to use a comparison website like Canstar Blue to see through all the marketing and rank plans based on which really do work out cheapest. Otherwise, you would need to be something of a mathematical genius!