A total of eight energy providers on CanstarBlue.com.au now offer cash incentives in a bid to secure new business, as customers shop around following the mid-year price hikes.
These cash incentives, which are applied as credit back into a customer’s electricity account, can offer a short-term financial sugar hit, but the move can potentially end up costing more in the longer term if the price of the new plan is not competitive.
However, new research shows some of the sign up deals are available on the lowest priced plans on CanstarBlue.com.au.
Price increases to electricity plans have risen by up to 13.5% from Australia’s biggest retailers. However, switching to a cheaper plan could save some households more than $420 in a year thanks to retailers offering competitive prices and the added bonus of a sign-up sweetener.
Which providers are offering a cashback sweetener?
The Canstar Blue database shows there are currently eight providers offering free credit to new customers of up to $200 on eligible plans.
These offers, which vary by state, typically require new customers to stay for a minimum term.
← Mobile/tablet users, scroll sideways to view full table →
| Electricity plans offering free credit for new customers | |||
|---|---|---|---|
| Provider | Max credit on offer | Wait time for credit | State |
| 1st Energy | $150 | 12 months | TAS |
| AGL | $100 | 90 days | NSW, VIC, QLD, SA |
| Alinta Energy | $100 | First bill | NSW, VIC, QLD, SA |
| Energy Locals | $100 | 6 months | NSW, VIC, QLD |
| Kogan | $100 | First bill | NSW, VIC, QLD, SA |
| Momentum Energy | $100 | First bill | NSW, QLD, SA, VIC |
| Nectr | $200 | Second bill | NSW |
| Powershop | $200 | First bill | NSW, QLD, SA, VIC |
Source: CanstarBlue.com.au. Eligibility criteria for credit based on state and/or provider terms, as well as plan type. Additional terms and conditions may apply.
Can a cashback deal work in customers’ favour?
Yes, potentially, however, it will depend on the plan they’re considering, their household needs and how much energy is consumed.
L0oking at single rate plans for an average household, CanstarBlue.com.au research found the lowest priced cashback deals in Sydney, Melbourne, Brisbane and Hobart were all cheaper in the first year when compared to the lowest priced plan without a cashback.
Adelaide was the only capital city considered where it was better to go with the lowest priced plan without a cashback, while Canberra did not have a plan with cashback on offer.
However, some plans offering sign-up incentives are not necessarily the most competitively priced, and customers need to be careful when picking a new provider.
← Mobile/tablet users, scroll sideways to view full table →
| Lowest cost plans with and without a sign-up cash incentive – cost in 1st year | |||
|---|---|---|---|
| Plan with cashback | Plan without cashback | Savings | |
| Sydney | $1,391 | $1,542 | ✅$151 |
| Melbourne | $1,200 | $1,254 | ✅$54 |
| Brisbane | $1,681 | $1,781 | ✅$100 |
| Adelaide | $1,918 | $1,818 | ❌-$100 |
| Canberra | N/A | $1,992 | – |
| Hobart | $1,216 | $1,297 | ✅$81 |
Source: CanstarBlue.com.au. 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, with plans offering cashback calculated with cashback included. 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). Eligibility for cashback discounts apply.
How can switchers know how to spot a good deal?
Before getting caught up in offers, discounts, or deals, any household looking to switch plans should keep their eye on three key items, and make sure to compare plans against each one:
- Reference price: The advertised price of an electricity plan will always be compared to the reference price, a state-specific price set by regulators each year to use as a benchmark for comparison. The greater the difference a plan is to the reference price, the cheaper it is.
- Supply charge: This is the cost the provider will charge each day to be connected to their network, regardless of how much electricity you actually use.
- Usage charge: This is what the provider charges for the use of electricity. It can be based on different times of day (i.e. Time of Use) or have different tiers of rates, based on how much you use per day. Make sure the charges are not significantly higher than plans with no credit offer.
What other sweeteners are providers offering to tempt people to switch?
Free credit is not the only sweetener on offer from electricity providers, with a number of retailers offering subscriptions or even free electricity on plans.
CanstarBlue.com.au’s database shows some of the additional perks on offer include:
- Free Netflix Standard Subscription: every year, with AGL’s Netflix Plan.
- Free electricity: On plans such as AGL’s Three For Free, between 10am and 1pm everyday (SA only), GloBird’s Free Lunch with $0 usage charges between 12pm – 2pm everyday, or Red Energy’s Red EV Saver, between 12pm – 2pm on weekends.
- Refer-a-friend credit: A number of retailers, including Energy Locals, Powership and CovaU, offer credit of up to $75 if you refer-a-friend and they sign up to an electricity plan.
CanstarBlue.com.au data insights director, Sally Tindall, says, “Many electricity prices have sky-rocketed since the start of the new financial year on the back of the approved price hikes from the regulators.”
“We know the big three retailers have increased prices for existing customers by up to 13.5 per cent in some cases, but anecdotally we’ve heard of existing customer price hikes from smaller retailers that extend beyond this.
“Price hikes can feel unfair, particularly for loyal customers, but the electricity market is full of potential ways to save for those willing to chase down a good deal, including by taking advantage of cashback sweeteners.
“Sign up sweeteners can sometimes be a fool’s ruse, particularly if you have a tendency to set and forget. However, if you are an avid switcher who doesn’t use a huge amount of electricity, then these incentives could potentially work in your favour, especially if you can find a plan that offers the best of both worlds, that is, cheap electricity rates and free credit.
“The danger is, unless people are actively reviewing their plan, they could get hit with further price hikes after the sugar hit of a sign-up perk has worn off, potentially leaving them on an uncompetitive deal for years.
“It’s also critical to look at the fine print because some of these deals have caveats as to how long you have to be a customer before you get the dough.”
← Mobile/tablet users, scroll sideways to view full table →
| Potential savings switching from average annual cost to lowest cost electricity plan | |||
|---|---|---|---|
| City | Average annual cost | Lowest annual cost | Potential savings |
| Sydney | $1,814 | $1,390 | $424 |
| Melbourne | $1,460 | $1,199 | $261 |
| Brisbane | $2,043 | $1,681 | $362 |
| Adelaide | $2,190 | $1,817 | $373 |
| Canberra | $2,375 | $1,992 | $383 |
| Hobart | $1,326 | $1,216 | $110 |
Source: www.canstarblue.com.au – 03/09/2025. 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.
Visit canstarblue.com.au to view customer satisfaction research and ratings for more than 1,800 brands across 300 consumer products and services categories.
Share this article