Introduction

Comparing affordable energy offers from different providers is the easiest way to reduce the costs of energy. 

With many free and independent government price comparison tools and websites available, one can compare the offers out there to figure out which one will work best. To leverage the services provided to compare offers from other energy retailers, a device with access to the internet is required, the most recent bill, as well as information on the household. 

Only requiring 10 to 15 minutes, users can save up to hundreds of dollars from the reduced energy costs.

Breakdown of Energy Bill

The bill consists of how much energy you consume, times the price per unit. However, the price may vary according to the contract that you have signed as well as the time that the electricity was consumed. As such, the electricity bill will vary according to the location of the residence of stay. Therefore, it is important to take note of this and decide on a provider that is best suited for the residence in the specific area. 

With two parts to it, the electricity and gas tariff consists of the supply charge, also known as the fixed charge or service charge, and also the usage charge.

The daily supply charge appears on your bill as a total cost deriving from the cost of getting electricity or gas to the residence. 

Usage charge reflects on the bill in cents per kilowatt hour or cents per megajoule for electricity and gas respectively. It is the cost of gas and electricity used.

Do take note that there may be multiple usage charges appearing on the bill as it depends on the time of use. Some offers that are based on time of use will charge different prices based on the time period that the electricity or gas was consumed. The time period is known as peak, shoulder, and off-peak.

Contracts and Offers Available

Based on the location, there may be more than one choice of energy retailer to choose from. In cases where there is only one energy retailer, there will still be various offers that they offer to their users. Picking one out of the many options may be a daunting task, therefore it is important to understand and know when you consume energy. 

Some contracts reward off-peak energy consumption to promote users to consume energy during a specific time frame. Users who shift their chores to the allocated timing are able to rack up on some savings as the price of the energy consumed will be reduced. Therefore, it is crucial to find a plan that suits the lifestyle to save as much money on bills as possible. When the user chooses a plan that is not complimentary, it may cost the user to pay more. 

Some things to take note of before signing the contract would be to have a chat with your retailer to get answers to your questions about the benefits of switching to another plan. During so, ensure that the price that is being compared is in cents per kilowatt hours. When comparing, do not forget to look at the price of the daily supply charge between both the new and old plans. In the event of late payment or early termination of the contract, some providers will charge an additional fee, do check with the retailer on how the brand reacts to such situations. Since you are planning to change from one plan to another, check if there are any freebies or gifts that the retailer will provide to entice you to make the switch. Do not take the offer at the surface level, inquire with the retailer if there are any bonuses or savings that the plan provides. If the retailer provider offers conditional discounts, it is only beneficial if you are able to meet the condition. For example, if someone has trouble paying bills on time, it is not beneficial if the provider offers pay on time discount. Before putting down your signature on the contract, ask questions about how to further continue the contract in future. Look out for information on the renewal of the contract or even the option to change retailers in future. 

When the time comes to sign the contract, information that should be present would be the prices and charges of the energy provided. In the event of early termination, the amount of the payment and penalty should be stated. The starting and ending date of the contract should also be clearly indicated on the contract. Lastly, information on billing and payment as well as the rights and obligation of the contract holder should be listed on the contract. 

Issues with Bills

Ensure that the retailer reviews your bill when requested, especially when your bill does not reflect accurately. Apart from that, when you are unable to pay when the bill comes, do contact your retailer for assistance. With support from the retailer, they might be able to recommend you to take up a payment plan to prevent from disconnecting from the provider. Do contact the retailer in the event of receiving a disconnection notice to discuss the options available. One should not be disconnected during a protected period like the weekends or public holidays. Those who are registered as someone who is on life-support should have further protection from disconnecting. 

Conclusion

Over the past few years, electricity prices have been steadily rising due to rises in the costs of the network. Network refers to the distribution and transmission system of the poles and wires that are delivered to the homes. The need to repair and replace old wires and poles, increase in peak demand, the period of time which sees the highest demand on the energy network, growth in population and rising standard of living has contributed to the increase in the cost of the network. 

The prices of gases are easily influenced by the increased production and development costs for newer gas resources and regulation uncertainty on certain gas development in some places.

However, prices of electricity have slowly decreased due to the law and regulations that the government has put in place. Some examples are the Australian Government Big Stick Legislation.

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