Energy plans with no discounts – a good deal?

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 EnergyAustraliaAGL, 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?

Which energy providers offer plans with no discounts?

Energy plans with and without discounts

Here are some of the cheapest energy plans both with and without discounts available in New South Wales, Victoria, Queensland and South Australia. Check out if the no-discount plans in your state could be offering more savings by clicking on the relevant tab below.

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.

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!

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