Energy plans often come with flashy promises—discounts, sign-up bonuses, or ‘unbeatable’ rates. But dig a little deeper, and things can get murky pretty fast. And the result is, many Australians end up locked into deals that don’t suit their needs simply because they don’t know what to watch out for.
If you’ve thought about finding the perfect energy fit for your lifestyle, or want to run an Energy and gas comparisonanalysis, there’s a few things you need to consider first. Switching energy plans might look easy, but there’s a maze of terms, rates, and fine print waiting to trip you up.
The good news? You don’t have to navigate this alone. This blog will walk you through the most common mistakes people make when switching energy plans and show you how to pick the best deal without falling into the traps. So, let’s get into it!
Contents
- 1 10 Mistakes to Avoid When You Switch Energy Supplier
- 1.1 1. Failing to Compare the Market
- 1.2 2. Assuming You’re Stuck with One Provider
- 1.3 3. Not Reviewing Energy Contracts Thoroughly
- 1.4 4. Ignoring Ongoing Reviews of Your Plan
- 1.5 5. Overlooking the Provider’s Stability
- 1.6 6. Choosing Plans Based Solely on Price
- 1.7 7. Not Factoring in Customer Support
- 1.8 8. Forgetting About Bundling Options
- 1.9 9. Overlooking Renewable Energy Options
- 1.10 10. Avoiding Professional Help
- 2 Summing Up!
10 Mistakes to Avoid When You Switch Energy Supplier
1. Failing to Compare the Market
Jumping on the first bargain that appears good is one of the biggest mistakes Aussies make when switching energy suppliers. In addition to pricing, energy plans might differ greatly in discounts, terms of conditions, and overall value. You may miss out on a plan that better fits your spending and usage habits if you don’t compare Australian energy plans.
So, look beyond introductory discounts or flashy sign-up bonuses when comparing Aussie energy suppliers and plans. These may only apply for a limited time, and ongoing rates could be much higher. Use handy online comparison tools to examine various options or consult with an energy broker. Whether it’s electricity or gas, conducting an energy and gas comparison can make all the difference.
2. Assuming You’re Stuck with One Provider
Over the course of a year, Australian electricity rates typically decrease; nonetheless, over half of consumers lose out by continuing with their previous plan.
A lot of individuals mistakenly think that because of their residence or the kind of property they own, they are unable to change energy suppliers. Renters are particularly prone to this. But when it comes to selecting an energy supplier, renters often have the same privileges as homeowners.
That said, there are exceptions. For example, if your rental agreement prohibits switching providers or if your property is part of an embedded network, you may not have the option to switch. Always take the time to review your rental agreement to understand your rights—especially if you’re moving house because energy plans may vary widely in new locations.
3. Not Reviewing Energy Contracts Thoroughly
It’s easy to skip reading the fine print, and let’s face it, it’s not much fun! But doing so can lead to unpleasant surprises. Energy contracts often include details about rate changes, benefit periods, and additional fees that could affect your costs.
Pay close attention to:
- Usage Rates and Supply Charges
These are the two main components of your bill. A plan with a low usage rate but high supply charges might not be as economical as it seems.
- Benefit Periods
Many Australian energy plans offer discounts or fixed rates for a specific period. Once this period ends, rates may increase.
- Additional Fees
Late payment penalties and credit card surcharges can add up over time, so it’s key to factor them in when comparing energy plans. For example, an AGL electricity connection might include added fees for specific services.
4. Ignoring Ongoing Reviews of Your Plan
Switching to a new energy plan once is not enough. The energy market is dynamic, with prices and promotions constantly changing. If you stick with the same plan for years, you might miss out on a bunch of better deals.
Make it a habit to review your energy plan at least once a year. This is especially important if you’ve recently opted for a same-day electricity connection, as introductory rates often shift after the first billing cycle.
5. Overlooking the Provider’s Stability
The financial health of your energy provider is another important consideration. In recent years, some smaller energy providers have gone out of business, leaving their customers scrambling to find alternatives.
Before signing up, do some research. Look into their history, customer reviews, and market reputation. Even when you Compare energy plans in Australia, opting for a well-established provider can save you from unnecessary hassles down the line.
6. Choosing Plans Based Solely on Price
It’s normal to search for the best deal, but concentrating just on cost might backfire. Certain inexpensive plans might not fit your energy consumption habits, and others could not include features like renewable energy sources.
For instance:
- Households with solar panels can miss out on savings if they choose a plan with a low feed-in tariff.
- Families using electricity primarily during peak hours could end up with higher bills if their plan isn’t tailored to their usage profile.
Take that extra time to evaluate your household’s energy needs. Look at when and how you use electricity. If you’re moving house energy needs may shift entirely, requiring a fresh review.
7. Not Factoring in Customer Support
Although it is sometimes disregarded, excellent customer service can have a significant impact during an issue. Prompt and effective support can help you save time and frustration when facing billing disputes or outages.
Therefore, before signing up, check online reviews or ask around to see what others say about a provider’s customer service. AGL’s electricity connections, for example, often have robust customer support, but it’s always worth confirming firsthand.
8. Forgetting About Bundling Options
Bundled plans that include gas, electricity, and other services are available from some energy suppliers. However, bundling isn’t always the greatest choice, even while it might be practical and may provide discounts sometimes.
Jump online to compare standalone energy and gas plans to bundled options to see which provides better value for your household to avoid missing out on hidden deals.
9. Overlooking Renewable Energy Options
If sustainability is a priority for you, consider choosing a provider that offers green energy plans. While these plans may cost slightly more, they can significantly reduce your carbon footprint.
Check out the provider’s renewable energy credentials and see how their plans align with your values. For many Australians, the decision to Switch energy suppliers is now influenced by eco-friendly options.
10. Avoiding Professional Help
Working your way around the Aussie energy market can be overwhelming, especially if you’re unfamiliar with the terms and conditions. This is where an energy broker can be invaluable because finding the best plans for their clients is their area of expertise. They can guide you through complicated arrangements and have access to a large number of suppliers.
Additionally, since they are compensated by the energy providers, many brokers provide their services without charge. Professional assistance may save you time, hassle, and money, whether you’re seeking a same-day electricity connection or require advice on a long-term contract.
Summing Up!
Although switching energy plans might result in big savings and greater value, it’s so important to proceed with caution. You can guarantee a more seamless transition and a strategy that suits your family by avoiding the above-mentioned mistakes and spending time analysing your options.
If you’re unsure where to start, reach out to a trusted energy broker or use online comparison tools to explore your options. Small steps, like conducting an energy and gas comparison, can lead to big savings over time.