Cheapest Electricity in Sydney
Post on June 12th, 2015
Want Cheaper Power Bills in Sydney & New South Wales?
New South Wales has the highest number of electricity consumers in all of Australia, the majority of which are located in the state’s capital city, Sydney. There are just over 3 million residential electricity customers in Sydney, plus over 350,000 commercial or business customers. Sydney and NSW are serviced by three electricity distribution networks: Endeavour Energy, Essential Energy, and Ausgrid.
If you’re moving home and looking for the cheapest electricity retailer at your new address, or if you’re just sick of paying more than you need to for your electricity and gas, it’s time to shop around.
The electricity market in NSW explained
The electricity distributor’s role is to supply electricity to homes and businesses. They also maintain the network: Looking after the poles, wires, and meter boxes. Your distributor is determined by your geographical location. However, the distributor sells power wholesale to retailers, it is these retailers who then bill customers for their energy use. Who should you select as the best electricity retailer in NSW? That is your choice! Electricity Wizard can help you compare the best providers in your area so you can save money.
In Sydney and throughout NSW, the government sets a recommended rate that retailers can charge their customers. These rates are called regulated rates. The retailers have the power to lower electricity charges, offer discount rates, and incentive for customers who pay on time. As you can imagine, it is rare for the retailers to charge less. Electricity customers in NSW can make sure they are getting the best price by comparing retailers and switching providers. Changing your electricity retailers every couple of years will ensure you are always getting the cheapest rate for electricity.
Retailers in NSW and Sydney generally advertise and offer their customers a standard regulated rate, with extra deals and discounts to make their plan sound like the best electricity deal available. These discounts often include incentives to “Pay by Due Date”, discounts for Direct Debit, lock in contracts, or various tariff rates. It is these discounts that make different electricity retailers more attractive for certain customers.
When comparing plans and tariffs to find the best rate, it is important to look for a good plan structure that suits your usage habits, no hidden fees, and the best overall discounted rates to save money on your monthly energy bills.
Choosing a retailer in Sydney and New South Wales
Before you choose a retailer, no matter who you decide to go with, it’s important to understand your electricity bill first. Your bill is made up of two main costs: the electricity you use (usage charge), and the cost of your supply (supply charge).
The usage cost is a fee based on the amount of electricity you actually use. This is what your retailer is charging you, and is comprised of peak and off-peak electricity usage charges (charged in c/kWh) and “service to property” fees. Service to property is for the provision of a supply of electricity for the running to your home. This “service to property” fee is charged at a cents-per-day rate. As your usage charge is set by the retailer, this cost will change depending on who you go with, so you can shop around to find the cheapest rate.
Be aware that prices for your electricity can differ drastically depending on where you live in New South Wales. Customers that live in Sydney and its suburbs often have lower supply charges per day and lower usage prices per kWh than customers living in rural areas. The reason for this is that, at the end of the day, it costs less to supply electricity to homes within the city compared to homes in the country.
Your supply charge is what you pay for your connection to the electricity grid. These costs will generally remain the same each bill, unless your retailer changes their pricing. If you’re looking around for retailers with the cheapest supply charge, keep in mind that they’ll generally offset these by charging a higher usage fee.
So who do you choose? That really depends on what’s on offer. The electricity market is changing all the time, so it’s important to stay up to date and compare all offers regularly.
Understanding the competition
In the past, before the introduction of a deregulated electricity retail market, there wasn’t much choice for consumers. Electricity users were on the same tariff structure and pricing scheme.
These days, however, we’re a bit luckier, and the introduction of a deregulated electricity retail market works in the customer’s favour. Deregulation of the electricity price market in NSW meant that the Government removed its restrictions on electricity competition and prices. With more retailers free to enter the market there’s a larger range of plans and more competition to be the best energy supplier in NSW.
Electricity retailers in Sydney and NSW are able to set their own prices, design their own electricity plans, and create their own conditions, which has resulted in a wave of new retailers entering the market. With so many retailers offering great deals on electricity, consumers have the ability to choose the best plan to suit their needs. The power’s in your hands, and electricity retailers know this — and this is where you can start saving money.
Retailers have the freedom to set discounts of their choice, offer special offers, and to create their own terms (disconnection charges and other terms including the length of service contracts with them). But keep in mind that prices are also affected by meter type, the tariff you are on, and whether or not you use solar power.
Understanding what’s on offer when considering changing electricity providers
There are two basic types of offers you’ll come across when shopping around: a standing offer, and a market offer.
A standing offer is essentially a default offer; a simple, basic package, with a minimum set of terms and conditions that govern it. These are generally the older contracts that you might have chosen a number of years ago, which you might still be on if you haven’t switched your supplier in a while. Standing offers are there to make sure that everyone has access to electricity services. But you’re probably paying too much for your electricity if you haven’t shopped around in a while.
The price of these offers is the basic cost set by your retailer. Standing offers are generally more expensive and don’t provide any options for discounts or ways to reduce your costs. For extra savings on your electricity, it’s better to have a look at a market offer instead.
A market offer differs from a standing offer in that it can have different terms and conditions, and even include different features, or discounts. This is where retailers get competitive. They can charge different prices, offer discounts, throw in added extras, or give special offers that make their packages more attractive. These offers are where you’ll find the most savings.
Cheapest isn’t necessarily the best
While getting the cheapest price would be ideal, the cheapest electricity rates don’t always guarantee that you will get the best service. For the best of both worlds in cheap rates from a top-quality electricity supplier, use the criteria listed below when searching for a supplier:
- Terms and conditions – Make sure to compare rates, tariffs, and terms and conditions from supplier to supplier before switching.
- What’s the plan? – The type of plan you sign up to can change your electricity cost dramatically. There are two types of plans to choose from fixed rate and variable rate. Fixed rate means you lock in a usage rate for the term of that contract, and variable rate means that your usage rate can be changed at your supplier’s discretion.
- Rate increases –While most suppliers tend to only increase their rates yearly, some electricity suppliers can change their rates with only 28 days’ notice, meaning that your electricity bill could vary significantly from month to month. This is why it is imperative to look for a company that can cap rate increases so that you can rest assured that your cheap rate will remain secure in each billing cycle.
- Match rates – Ask the electricity supplier if they are able to match or beat guarantees from other suppliers. This will ensure that you get the best deal from a dependable supplier that you can trust for the long-term.
- Any discounts? – That’s right, even with your electricity you might be able to get a discount, so ask the supplier about any discount offers they have available. Some providers offer discounts for switching to email correspondence, some offer discounts for direct debit payments, and some even can give you a discount just for paying on time.Be sure to check if it’s actually worth it, though, before you sign up. Check to make sure any terms and conditions won’t come back to bite you (for instance, if you lose the discount for being late), or that you’re getting the benefit for the full term of your plan. Some retailers only apply discounts to usage charges, and some might apply a discount to the whole bill. So before jumping into any discounts, get your calculator out and do some quick maths—it’ll save you in the long run.
Whatever you choose, it’s recommended that you change suppliers every 12 to 24 months to take advantage of the best rates and the newest technologies. With the competition in the market these days, retailers expect this, so do what they can to attract your business.
And this is where you have the choice to change to an electricity retailer that suits you.
The power is yours
Your choice of electricity retailer is more important than most people and businesses realise.
By choosing a supplier that doesn’t suit your individual circumstances, you can end up paying significantly more for your bills than is necessary. You don’t want to pay more for your power than you have to. You just want the right company, at the price that’s right for you. So it’s important that you choose a company that fits your criteria.
Some companies specialise in business or commercial electricity, while others are more suited to residential customers. You might have a preference for your supply to come from “green” or “renewable” energy sources, which some retailers offer. Some customers might prefer that the retailer is Australian owned and operated—after all, the easier it is to contact your retailer, the better their customer service should be.
Who sells electricity in Sydney and NSW?
Electricity customers in NSW and Sydney can choose from a huge range of energy retailers including-
- 1st Energy
- Alinta Energy
- Click Energy
- Diamond Energy
- Dodo Power and Gas
- Energy Australia
- ERM Power Retail
- Lumo Energy
- Mojo Power Pty Ltd
- Momentum Energy
- Next Business Energy
- Origin Energy
- Red Energy
- Simply Energy
With so many factors to consider and so many retailers to choose from, choosing the right electricity retailer best suiting your individual needs can be time-consuming. It can be a daunting task too. Choose the wrong one, and you can end up wasting hundreds of dollars every year.
Get a Better Deal on Your NSW Electricity Bills
At Electricity Wizard, we do all the hard work for you. When you call us, we’ll compare your rates and plans against the range of energy suppliers available in your area. We do all this to help you select the right plan for you with a right retailer who can meet your requirements. We are here to help you cut down your costs and reduce your energy bill. Best of all, our service is completely free – so, what do you have to lose?
Try us today! Call Electricity Wizard now on 1300 359 779 or fill out your details below to have one of our comparison specialists help you get a better deal on your energy bills starting today!