Switching energy providers

Expert tips for switching to the right energy provider for you

When it comes to helping you decide whether to switch energy providers, our Head of Energy, Meredith O’Brien, has some top tips.

Consider purchasing separate gas and electricity plans

You don’t need to use the same energy retailer for your gas and electricity. In fact, you may be able to find cheaper options by purchasing plans with different providers.

Check your contract for exit fees before switching

There are no restrictions on the number of times you can switch providers, but if you’re on a fixed rate contract, you should check whether there are no exit fees in the terms and conditions of your energy contract and consider your best option before switching.

Check if you’re eligible for a smart meter

Enquire with your retailer about switching to a smart meter and take advantage of a time of use tariff to better manage your usage by spreading casual energy usage from peak demand times to off-peak times (such as turning on your dishwasher or washing machine on weekends, overnight or early in the morning). Keep in mind, there may be costs associated with installing a new meter.

Understanding the essentials

Who can change their energy providers?

Residents in the following Australian regions can choose their electricity and gas suppliers:*

• Australian Capital Territory (ACT)
• New South Wales (NSW)
• South Australia (SA)
• South-East Queensland (SE QLD)
• Victoria (VIC).

Tasmanians and those in the Northern Territory (NT) may be able to choose between providers, but options are limited. Some Western Australian (WA) residents can choose their gas provider if they live within the Perth metropolitan area.

*Please note that the information provided on this page is only applicable to National Electricity Market (NEM) states and territories (i.e. NSW, QLD, ACT, SA, VIC and TAS).

Who can’t choose their energy provider?

Residents in the below states and territories can’t change their electricity provider due to current regulations:

• Regional Queensland residents outside of the South-East
• Western Australians.

We don’t currently compare gas retailers in:

• Northern Territory
• Tasmania.

Why should I change energy providers?

There are many benefits for those who switch energy providers at the right time. Moving homes is a common reason for changing providers, as it serves as a timely reminder to assess your current utility costs and discover what other options are available to you.

However, if you’re not moving house, there may still be benefits if you switch from your current provider. For example, you might be interested in:

• Finding a better price. If your gas or electricity bill is rising, there may be a better energy deal available with another provider that offers discounts, perks or other incentives to keep costs down.
• Aligning with a service provider who cares about the same things you do. Perhaps you’d like to reduce your carbon footprint and use renewable energy or add some green energy with your existing provider.
• Finding a plan with a flexible contract. You may want a plan that doesn’t penalise you for terminating early or making changes, or a plan that allows you to lock in your rates for a set period.
• Taking advantage of solar electricity rebates. If you’re installing solar panels, you can add a feed-in tariff or compare different tariffs before changing electricity providers if you already have them.
• Enjoying top-quality service. Looking for great customer service for your electricity or gas provider could be another reason you would change.

Depending on which Australian state or territory you reside in, you may have different options when switching energy suppliers.

Your checklist for switching energy providers

1. Take stock of your current plan’s exit fees
   Review your current energy plan’s terms and conditions to determine if you could face any early exit fees for cancelling before your contract renews. Keep these termination fees in mind, even if the fee is less than what you’ll save by switching.
2. Review your current rate and any discounts
   By understanding the usage rates, supply charges and discounts currently applied to your account, you should have a clearer picture of what’s ‘good value’ when weighing up your current plan against others. This information may be on your bill, or you can contact your provider to find out.
3. Ensure you have paid outstanding bills
   If you have any outstanding energy bills or a financial hardship agreement with your current provider, you may not be able to switch to another provider until you pay the outstanding debt. However, you can switch providers even if you haven’t completed your current billing cycle with your provider, if you don’t have overdue payments. You shouldn’t be billed twice, as your current retailer will send you a final bill that covers the period up to the switch date and then you’ll receive future bills from your new retailer.
4. Determine your energy requirements
   Before comparing energy providers, it’s essential you understand your energy use and requirements before finding the right plan for your needs, as it will vary between households. A quick way to work out how much electricity and gas you typically use is to compare your energy bills from the last year. Doing so will give you an indication of how your energy usage changes across different seasons.
5. Compare a range of energy plans.
   Head to our energy comparison service and select whether you’re comparing electricity, gas or both, as well as if you’re moving. Then, follow the prompts, entering details about your home, including:
   • Your home’s address
   • Whether you have solar panels
   • Your electricity and gas usage (if you have this information)
   • Your name, email address and phone number.
6. Select a plan to view its details. Be sure to carefully weigh up each plan’s pros and cons, such as what discounts and attractive offers are available. Keep in mind to check when your benefit period will eventually expire, as your plan will revert to a higher rate at the end of this period . Be sure to check any new plans against your old one to ensure they’re suitable.
7. Confirm the switchover once you’ve found the right plan.
   Lock in your switch by applying through our online service and secure your new energy deal.

What to know about switching energy providers

How long will it take to switch energy providers?

Switching to a new electricity provider now takes as little as two business days, meaning you could take advantage of new electricity prices, discounts and perks quicker. However, the switching process for gas providers can still take up to 60 days in VIC and 90 days everywhere else due to meter reading schedules.

Please note that your new provider will handle all communication with your current energy provider.

You’ll still receive your usual energy supply while switching energy providers. You’ll also receive a final bill from your old provider for the time before your new provider took over.

What should I look for in an energy plan and provider?

Most energy contracts differ slightly between providers. Some plans may have renewable energy options built-in, while others may offer a discount or options to pay at different intervals.

Read through and compare each plan’s terms and conditions to understand the details and differences. Here are some basic points to look out for when choosing a contract:

• Does the contract offer a fixed rate and period? When comparing energy plans, you’ll notice some providers offer fixed rates for a period. This fixed rate can be a good thing if energy prices rise in the market. However, you’re locked into your contract and may need to pay an exit fee if you wish to switch to a cheaper deal.
• Does the contract offer any discounts? There are two types of discounts that may be available to you – guaranteed or conditional. Conditional discounts may be ongoing but rely on the customer (such as pay-on-time discounts). Guaranteed discounts are unconditional but will have a benefit period that will expire after a period.
• Are you receiving a ‘standing offer’ for electricity? You may be on the standing offer if you’ve never signed up to a market offer or your discounts, perks or incentives have expired on a market offer. Market offers are usually cheaper than standing offer plans due to discounts, incentives and other perks. If you aren’t on a market offer, you could be missing out on potential savings.
• What is the provider’s customer service like? Be sure to consider how the provider handles service requests. Usually, you can complete service requests over the phone, but a growing number of businesses now offer online services for a more efficient customer experience.
• Are you eligible for any concessions on your energy plans? If you hold a Pensioner Concession Card, Health Care Card, Veterans’ Affairs Gold Card, state-issued or Commonwealth Senior Card or receive eligible Centrelink payments, you may be entitled to energy rebates and concessions. Keep an eye out for these concessions when you compare energy plans.

Will it cost me to change providers?

It costs nothing to compare a range of energy providers through our free comparison tool. However, your current energy provider may require an exit fee if you’re on a fixed rate market offer and this is included in your contract’s terms and conditions. If you’re subject to such penalties, you’ll need to weigh up the benefits of the savings compared to the costs of prematurely ending your contract term.

In some circumstances, you may save more money by waiting until your contract ends and then switching energy providers.

You won’t need to pay a connection fee when you switch energy companies unless you’re moving. If you are moving, your new provider charges a connection fee that will be included in your first bill.

Can I cancel my new energy plan if I change my mind?

After you’ve signed up for a new energy provider, you’ll have a cooling-off period to cancel the agreement without incurring any fees or penalties. This period begins the day after you receive your welcome pack sent to you by your new provider, and runs for 10 business days.

Simply contact your new provider within this period to cancel your plan.

When’s the best time to switch energy providers?

Switching energy providers is a simple process. However, there are certain factors you must consider before switching. For instance, you may find it better to switch from your current contract before it’s renewed to avoid possibly renewing to a higher price with your current provider.

What do energy companies do to keep customers loyal and stop them switching?

In today’s energy market, providers compete with each other to gain and retain your business. They may advertise conditional discounts and loyalty programs to keep you with them and encourage you not to compare quotes with services offered elsewhere. These deals will vary depending on your provider, plan and eligibility.

You’ll need to weigh up any special promotions and discounts, such as alternate rates and one-off bill credits from your current energy provider when comparing.