Important Tips to Remember before Changing Energy Contracts
Planning to change energy contracts? It is one way to reduce the cost of your gas or electricity bill. It will open opportunities to enter into an agreement with electricity providers in Australia that can help you save money through the cost-efficient energy solutions and deals that they offer.
Changing energy contracts could bring huge benefits; but before you make the switch, it is important to proceed with care. Here are some of the things that you need to remember when changing energy contracts.
Facts to know before changing energy contracts
1. Know the basics
You’ll need an energy provider to acquire gas and electricity. But before that, you have to enter into a contract.
As with any undertaking that comes with a written agreement, you have to read the terms and conditions that it encloses. Review the contract carefully and don’t hesitate to ask for clarification, especially if there are clauses in the contract that seem unclear to you.
Keep in mind that energy contracts are binding. If there’s something that doesn’t suit you well, do not sign the agreement and advise your energy retailer about your decision.
2. Understand the types of energy contracts
Not all energy contracts are the same. Usually, they include energy plans that depend on what you need and your location. In general, there are two types of energy plans.
• Standard retail plans – this type of energy contract comes with minimum terms and conditions set by law.
• Market retail plans – as with standard retail plans, this energy plan also includes minimum terms and conditions, but it can offer greater flexibility. It is based on market prices, which can give it greater exposure to changes in prices, but it also presents opportunities for savings when usage is properly managed.
3. Choose the right energy contract period
It is also important to choose the right market contract period as this will also affect energy costs. Getting a good understanding of the market can help you choose the right market contract period. For instance. In a market where current prices are lower than future prices, it may be smart to choose a longer contract. On the other hand, in a decreasing market, the better choice would be the contract with a short period as costs are predicted to be lower in the future.
4. Consider your future plans
It is essential to take into consideration your future plans as there are major changes that can impact your energy use. Are there additions that you are planning for your home? Are you looking forward to the expansion of your business operations in the future? These are just some examples of plans that you should not disregard when switching energy contracts due to their impact on energy use in the future.
5. Know how an energy broker can help
Shop around so you can find a better energy plan that suits your needs. An energy broker can help you find electricity providers in Australia and compare a range of plans. Working with a trusted energy broker like Electricity Wizard has its benefits. It will allow you to access energy plans at discounted rates and provide options based on what you want. Energy brokers also take their part in reviewing the latest plans and deals so that you can be presented with the best offers.
Key points to remember
• You will be provided your energy bill by your current electricity retailer until your service is transferred to the new retailer. It is the responsibility of your new energy retailer to manage the switch.
• You can still change your mind after you’ve signed the energy contract and be free from charges as long as it is within 10 business days from the date of signing.
• Make sure to pay your final bill or any outstanding fees that you owe from your old energy retailer.
• If on a fixed-term contract, a fee may be charged if you switch energy providers before your contract expires.
Changing energy contracts is an important process that you should take seriously, especially if you aren’t getting huge savings from your electricity provider in Australia in the long run. Remember the steps and don’t doubt comparing energy contracts. You can find a free energy comparison tool online so you’ll be guided in choosing the right energy provider.
Check out Electricity Wizard today to learn about our easy-to-use energy comparison tool. For more than a decade, we have already helped over a million Australian consumers in finding a better offer from a panel of trusted electricity providers across the country. Find out more!