Compare Electricity Costs
Post on June 13th, 2015
Most Australians are happy to know that throughout the majority of Australia, you now have total freedom to choose your energy provider. Nonetheless, there is a wide selection of different gas and electricity rates available, so it can often become overwhelming to make the best choice as a consumer.
This is why it is more important than ever to compare electricity costs using a trustworthy service like ElectricityWizard. If you don’t question your current rates and compare between several providers, you might be missing out on savings each month. This could add up to a lot every year.
Where to Begin: Understanding Electricity Prices in Australia
The average charge for 1 kWh of electricity in Australia is 28.85 cents after GST, according to Country Energy in New South Wales. The average household in Australia uses approximately 18 kWh’s per day, equalling roughly $5.19 in electricity charges each day. While this may seem like an insignificant amount, this number can quickly add up to as much as $155.70 per month.
Off-Peak and On-Peak Electricity Usage
Electricity in Australia is priced at different levels, based on the average demand for electricity at a certain time of day. To give you an example, electricity can often be significantly cheaper at night, when there is less demand for electricity usage.
Electricity retailers called these night-time hours “off-peak electricity” usage. Off-peak electricity is cheaper for each household since it is primarily used to heat hot water systems. Yet many Australian homeowners are unaware that further money can be saved if appliances are connected directly to the off-peak meter.
A high energy usage appliance like a pool pump could cost a household close to $200 per month when it is connected to the on-peak meter. Yet if you were to connect the same pool pump to the off-peak meter directly, you could save up to 50% on your monthly electricity bill!
When you compare electricity costs and choose a more competitively priced electricity retailer, it is equally as important to consider how you use electricity each day in on-peak and off-peak hours. According to Country Energy, residential off-peak rates may be available as low as 11.00 cents per kWh, compared to 28.85 cents during peak periods.
As a homeowner, if you are not educated about the different peak periods in your electricity pricing structure, you could be missing out on the chance to save a bundle each year. High electricity usage during on-peak times of the day can raise your electricity bill significantly.