Before you even go online or compare providers, take the time to work out your average electricity output. This is important as some deals work better for electricity-intensive users, some for light users.

This information should be available on your existing bill but there are also online tools that can help.

Then take a second to work out how long you want to sign up to a contract for (if at all) and considerations like how you’d like to pay and other external factors.

How do electricity companies generally sort deals?

Supply charge: the fixed daily amount
Usage charge: the price/tariff you pay for energy, measured in cents per kWh (kilowatt per hour); is there an off-peak reduction or peak increase?
Contract period: the length of the contract
Termination fees: any early termination fees or charges that will incur should you transfer to another retailer during the contract period
Payment options: does the contract allow you to pay your bill using different methods and, if so, at what cost?
Moving house: Is this part of the proposed contract?
Written information/terms and conditions: What’s the fine print? Does the company provide you with a summary of the contract?
Trial period: has the retailer given you time to think about your options? By law, there’s a ten day cooling off period…

What’s the next step? Compare and find the right deal!

It can be a real headache working out all of these factors but don’t despair. Luckily, there are third party, impartial energy comparison services to help you. One of our favourites is Switchwise, which has partnered with all the major electricity players: AGL, EnergyAustralia, Origin Energy etc. to find you the best deal.

What Switchwise and other comparison services do well is lay out the diverse range of electricity prices and plans in simple terms. For example, if early termination fees are something you’re worried about due to not knowing whether you’ll fulfil the contract period, simply choose a plan that has no lock-in contract.

Whichever comparison tool you use, you should now have a fair understanding of electricity prices and the electricity market in general. Armed with this knowledge, you’re ready to switch providers and save money. Simply work out which criteria matters most to you and get switching!

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