Is your energy plan still the right one?
When was the last time you checked whether your energy plan still suits your household?
It’s easy to sign up for a plan and forget about it. Most electricity and gas rates changed on 1 July, and as our homes change, the plan that once suited us may no longer be the best deal.
Three Electrify Illawarra members recently compared their electricity plans and found that what makes a good plan depends very much on how your household uses and produces energy.
If you have gas for hot water or cooking, you’re paying supply charges for both gas and electricity, with less flexibility to take advantage of cheap or free electricity. A plan with a low daily supply charge and low usage rate may be the best option.
For households with electric appliances and rooftop solar, the priority is to use your own solar power during the day rather than buying electricity from the grid. A good solar feed-in tariff can also help. Single-rate plans may be preferable to avoid higher evening peak rates.
Add a home battery and/or electric vehicle (EV) and things change again. A battery can charge when electricity is cheap or when your solar is producing, then supply power during expensive evening periods. Look for a low daily charge, a good feed-in tariff and access to a Virtual Power Plant (VPP). EV plans can also offer attractive charging rates between midnight and 6am.
What about Solar Sharer plans?
Three hours of free electricity sounds fantastic – but whether you save money depends on how much electricity you can shift into those hours. Try to schedule hot water, EV charging, baking or your main meal between 11am and 2pm.
Some Solar Sharer plans have higher daily supply charges and significantly higher rates outside the free period. If most of your electricity use occurs in the morning and evening, the free hours may not compensate for these higher costs.
Also check whether your hot water is on the general circuit or Controlled Load, and whether the Solar Sharer plan includes it.
The key message is simple: don’t choose an electricity plan based on one attractive feature. Look at your whole household energy use and compare the total annual cost.
Use www.energymadeeasy.gov.au for help to compare energy plans.
