Finding an affordable electricity plan to sustain your household isn’t easy, especially when you have many options but little information. When you’re looking for a cheap electricity plan, comparing different plans is the ideal way to choose one that’s suitable.
Whether you’re thinking about the rates on your plan or the reliability of the energy retailer, you’re sure to come across terms like ‘price anchoring’, ‘usage charges’, etc. Such terms may seem unfamiliar to you, but they can imply a lot about different electricity plans.
Many energy retailers will provide a host of plans to choose from, and each one of them will come with a specific discount. This can include pay-on-time discounts, usage charge discounts, daily supply discounts, etc.
However, if you look carefully, you may realise that these discounts don’t offer a conclusive money reduction, but instead, offer the plan with a percentage discount. While it can be evident with some plans how much discount you can get, it’s not the same for all.
Energy retailers use percentage discounts to intentionally mislead consumers about how much money they’re actually saving. This is commonly known as price anchoring.
Cheap electricity plans are not always the worst or the best plans. It all depends on your requirements and priorities.
Whether you run and manage a business or a household, your needs must be met by an affordable energy retailer who won’t subject you to frequent electricity cuts or unnecessary extra costs. You must also try to pick the retailer with the most transparent pricing policy.
When comparing electricity plans between different retailers, try using a website that does it automatically in a few steps. You won’t have to put in the effort of trying to remember the different discount amounts or calculating how much money you’ll end up saving.
Electricity Prices Across Australia
The government has made an effort to reduce electricity and gas prices across the country, and you as the consumer can directly benefit. Wholesale prices for electricity in Australia have already dropped by 46% and are expected to fall more.
This means that you should always observe whether your energy retailer is passing on the benefits of this price reduction to you, and if that isn’t happening, it might be time to look for a new plan.
Continually Monitor Prices of Different Providers
Even if you’re currently already on an electricity plan, you should continue to monitor the prices of different retailers. This lets you know when price changes happen and whether your current electricity retailer integrates them into your plan.
Consider making the switch when you find a better deal for the same plan you have with another retailer. People generally don’t like switching their retailer once they settle on a plan, but this isn’t necessarily cost-efficient.
As time goes by, people’s needs and priorities change, so you must know that there’s nothing wrong with switching your electricity provider to get a better plan. You can even try negotiating with your current electricity supplier to get yourself a better deal.
To successfully negotiate a deal, you must be aware of the rates offered by other electricity suppliers in your region. One way to stay informed is to seek out a reliable website that can provide you with a detailed comparison of the various electricity plans in your area.
Is Cheaper Better?
Many people wonder if cheap electricity plans are better compared to what they’re paying currently. While going for the cheapest plan might subject you to inconvenience, you can find more affordable plans to make the switch without any hassles.
Since electricity prices vary by state, you may experience higher costs in some areas, so don’t compare electricity prices by state. The comparison should be made between suppliers in your area.
No two plans are the same, and every household/business has different requirements when it comes to electricity. Depending on your consumption and what you’re looking for in your electricity plan, you may find a plan that’s not the cheapest but offers exactly what you’re looking for.
Find the Best Electricity Plan for an Affordable Price
When looking for the best electricity plan for your needs at an excellent price, keep in mind that there will not be a perfectly catered plan for your requirements. Instead, you should find a plan that matches your budget and electricity needs at least 70% to 80%.
When you need help figuring out which electricity plan is right for you, search for comparison websites in Australia that help you find what you need in your area. Follow better energy usage tips, install solar energy panels, and get a cheaper energy plan to keep your monthly bills under control.