Rising electricity costs mean choosing the right provider is more essential than ever in 2021. But with so many providers popping up across Australia, how do you know which option is right for you?
There are two main costs that you’re going to see on your bill – and these are the standing and unit rates. The unit tax applies to how much power you are using, billed accordingly. The standing rate is how much you’ll be charged every day you’re connected, regardless of how much energy you use.
This covers the costs of poles and wires, meter readings, network maintenance and initiatives to assist vulnerable homes and reduce carbon emissions.
These can vary, so it’s essential to find the plan that has the lowest rates for both to get the best deal.
Juggling these costs to determine the best overall price can be challenging. Fortunately, there are numerous calculators available. These will allow you to compare and see which provider is going to give you the best deal overall.
Finding a plan with no standing charge is rare, but they do exist. The issue you’ll find is the usage cost is usually significantly higher, so you’ll likely pay much more for your power.
This option exists primarily for unoccupied premises. For example, if you have an investment property on the rental market, you could keep it on one of these plans because the usage will be extremely low. That way, you’re not paying for every day that it is not rented.
Another scenario where this could benefit you is when you run a business that only runs for part of the year. For example, a fruit picking operation may run for six months of the year, but remain dormant for the other six months. A plan with no standing charges would be ideal, so you’re not paying those rates for six months.
For average householders? This is likely to run your bill much higher unless you are extremely frugal with your energy use. This can be an option if you need to travel away for work for months or want to take a long holiday, so you’re not still paying for it while you’re away.
Adding solar panels to your rooftop will bring your bill down significantly through credits on your account. Getting the best value from these credits will drive your bill down, along with your reduced dependence on grid electricity to power your home.