If your power consumption is low and you are still receiving a high electricity bill, it may be because of an expensive electricity plan. Electricity prices vary from one energy retailer to another, and you may be on a plan with a high rate. In this case, switching to a new energy retailer makes more sense.
Before you start shopping for a new home electricity plan, though, you need to know about the choices available in your area. It becomes easier to compare electricity and different offers if you have information about local retailers. Choose a retailer offering you the best deal after comparing various tariff rates, discounts, and contract terms.
A new energy plan can reduce your electricity bills. But, some people are wary of the change due to misconceptions about the process.
If you are reluctant to change your current home electricity plan because of something you heard or read, here are some common myths about the process busted for you.
Energy Retailers Stop Supplying Electricity During Transition
One of the most basic misconceptions among consumers is that retailers will stop supplying energy to a house during the switch. You should not worry about this, as no retailer can disconnect your electricity during the switching process.
The transition from one energy retailer to another is seamless. Your current service provider will supply electricity to your house and send bills until the switch is complete. After that, the new retailer will take over and fulfill your energy needs. You will experience no interruption in electricity, even for two minutes.
New Energy Plan Require Installation of New Equipment
Most people believe that they need to install different or new equipment when they change their energy plan. That’s not true. Your new retailer will not send someone to change pipes, poles, or wires. They will use the existing power distribution system to supply electricity to your house.
The new retailer might suggest that you upgrade to a smart meter. But, you do not have to agree to that.
Fixed-term Contract Has Not Expired to Switch to a New Plan
There is also a misconception that you cannot switch to a new plan if you are on a fixed-term contract. There is no such rule. You do not have to continue with your current plan if you find a better deal.
You can compare electricity plans offered by various service providers without worrying about repercussions and penalties. And, if you decide to leave your contract early, check with your retailer whether you have to pay an exit fee. Some providers may charge a fee for ending the contract before time.
Have To Pay High Switching Cost
Some homeowners believe that the switch to a new energy retailer can be a costly process. But, the switching cost is not high. You do not have to pay a lot of money to get a new plan.
Energy Retailers Supply Electricity at the Same Rate
There is also a misunderstanding that all energy retailers quote the same price and offer the same benefits. It is incorrect to assume because pricing, fees, terms, and conditions vary from retailer to retailer.
One company might offer a discount, and its cost might also be below the reference price set by the Australian government. On the other hand, another retailer in your area might charge you more than the reference price. So, it is best to compare electricity plans to determine the best option available for you.
Questions To Ask Your New Energy Retailer
Do not be in a rush to switch. First, use an online tool to compare electricity plans of different retailers. Choose the retailer who is most likely to meet your energy needs. And before signing the contract, you need to call the company and ask a sales executive these questions to understand the terms and conditions of your new energy supplier.
- What is your cost per kilowatt-hour?
- How long is your contract?
- Do you charge service fees?
- Will your pricing change during the contract period?
- What is the process to cancel your contract?
- Should exit fees be paid in case you want to leave the plan early?
- How long do you take to switch the plan?
If you are not happy with your new energy plan, you can cancel it during the ten-day cooling-off period. The retailer will not charge you an exit fee. To choose the best plan for your needs, consider your monthly usage and regular bill amounts.