Cutting energy costs: How to reduce your gas and electricity bills.
As well as reducing the amount of gas and electricity you use, it makes sense to minimise the cost of what you do use.
For most households, this means reviewing their electricity and gas plans regularly. Unfortunately, you may even need to change providers regularly to make sure you are getting the best possible deal. This sounds a bit tedious, but it should be straightforward for most people.
How do electricity and gas retail markets work?
Here is a quick summary of how gas and electricity markets and plans work for retail consumers.
Electricity and gas retailers provide consumers with “plans”. These plans set the price of the gas and electricity they consume. Some of these plans are quite complex and have different rates for different seasons, different days and different times. Some plans are quite simple with just one flat rate.
Most states also specify a default rate or offer, which is basically a cap on the price of electricity and gas. Where a default rate is set, retailers are free to provide other market offers, but if consumers don’t select a plan, they will be placed on the default offer. If consumers select a market offer and the market offer ends, they will also be placed on the default offer.
Why you need to review your plan and provider regularly.
With changes in the market and market offers ending, it is critical that consumers regularly review their plan to make sure they are getting the best deal.
How to compare plans.
In most states you can make the comparison quickly and easily online. Here are the details of government-sponsored energy comparison sites:
| State | Comparison site |
| NSW, QLD, SA, TAS, ACT | Energy Made Easy website operated by Australian Government. |
| Victoria | Victorian Energy Compare website operated by Victorian Government. |
| Western Australia | Most of the WA retail electricity market is not contestable – meaning prices are set by the government and customers cannot select their provider. The retail gas market is contestable so you can select your provider, but the price is regulated. |
| Northern Territory | The NT retail electricity market is not contestable – but the prices are regulated by the government and there is little competition in the market. There is no competitive retail mains gas market in the NT because most households don’t have access to mains gas. |
Be wary of commercial comparison websites because the recommendations can be influenced by revenue agreements and may not represent all the options available in your area.
The easiest way to do the comparison is to provide your National Meter Identifier (NMI) which will automatically retrieve your electricity usage data. Your NMI will be on your bill. You can also enter details from a recent bill. If you find a cheaper plan you can usually switch to it quickly and easily.
