There are many different types of tariff structures that differ from state to state. While the names used here will be their most common name, the structures may be referred to by different names depending on the electricity retailer and the state that you are in.Single rate: this is the standard rate, and it does not differ over the course of the year, regardless of the time of day or season in the year. Block rate: there will be a charge for the first "block" of energy usage, followed by a different charge rate for the following "blocks", which can be divided daily, monthly or quarterly; this is the only structure that gas users can select. Time-of-use: the rates will be more expensive during "peak" hours when the electricity is in high demand, while "off-peak" hours will be significantly cheaper; the time in between the two periods are called "shoulder" hours, and they are priced somewhere in between the two. Controlled load: a unique rate for households that require certain appliances to run overnight; they may be subjected to a cheaper rate due to being supplied energy in "off-peak" hours. Feed-in tariff: for households who are 'feeding' energy collected from solar panels back into the grid; this incurs a credit which goes towards the next bill, lowering the required cost of the bill.
Every state has at least two different types of energy tariffs: the standard offers and the market offers.
The standard offers meet the minimum requirements of the government, while the market offer can be set at any price, for any amount of contract duration, and retailers can offer discounts and other incentives to make the offer more attracting.
Queensland, ACT and Tasmania have a third option, which are government regulated offers that allow for customers to sign up to a simple and reliable form of energy.
A tariff is simply a pricing model or structure that has been set by the electricity provider or retailer, and you get charged by the cents per kilowatt hour (c/kWh). A tariff comprises of a "fixed" charge that pays for the daily supply of energy, and a "variable" charge which is weighed upon your energy usage for the billing period.
The Victorian Government announced their bold plan to compensate households by $50, as part of their energy saving push.
Led by Premier Daniel Andrews, the aim of this campaign is to ensure that every Victorian household is paying as little for electricity as possible, while also raising awareness towards the new website.
With a newly rebranded website, households who use the energy saving tool on the Victorian Energy Compare website will receive $50 as compensation.
Making this entire campaign sound even better is that households are not required to switch plans or accept any offers. Simply using the tool to compare prices is enough to warrant the price help.
In the last three years, 700,000 people have visited the website, with seven out 10 people committing to switching energy plans in order to save money.
While early estimations have at least one million households taking up the $50 offer, Daniel Andrews is not concerned with the financial impact of spending more for this campaign.
However, there are fears that households who are not tech-savvy or lack an Internet connection may miss out on this rebate scheme, which will run from the 1st of July through to the 31st of December this year.
Depending on your location, the government might set the rates for a standard offer. The rates for a standard offer sometimes are higher than rates of a market offer and usually don't include discounts.
You may be on a standard offer if you have not changed energy plans in the past few years or never signed up for a market offer in the first place.
Our energy experts can compare your existing rates and offer details to see if you are on a standard offer and find you a better deal.
Market offers are generally for a fixed term or month to month contracts and are more likely to have better rates than standard offers.
These offers are set by the energy retailer. Market offers can change at any time, and your retailer can do this at any time. However, they do need to let you know before you next billing cycle. The retailer would need to let you know a month before your next bill.
No, is the short answer. It depends on the retailers standing rates and the structure of their discounts. The rates with one retailer may be higher than another, or they may only offer the discounts on the rates component of your energy bill and not on the daily supply charge.
So, a 30% discount could cost you more than a 20% discount depending on the rates and structure of the offer.Our energy experts and tools can calculate which option is right for you and make sure you get a great deal based on your location, usage and habits.
Depending on the energy retailer, some may apply a discount to the entire bill, while others may apply the discount to the usage rates only.
At the end of your contract, you may be moved to a standard offer or another market offer, or you may continue receiving the same offer depending on the retailer and the state you live in. If you have been on a fixed term contract, it's highly likely that there are newer and better offers available. It always pays to check.
If you find a better deal and want to switch, your current retailer may charge a cancellation fee to terminate your contract. In most cases cancellation fees are minor, and you could be better off paying the fee and switching retailers. You may save more in the long run.
These are one of the most common discounts energy retailers offer. They are also usually the most significantly incentivised discounts and depending on the state you live in, these discounts could be more than 30%. But if you don't pay your bill on time and in full, you will lose that (X) % discount for that billing period. If you are not always able to pay your bills on time, talk to our experts about energy plan that have the right discount options for you.
Energy retailers have two types of offers. Standing offer, which is often the most expensive option, and market offers that can have discounts or other benefits applied to the rates or bill. Market offers could contain discounted rates, pay-on-time discounts, credits, cash back offers, direct debit discounts, retailer solar tariff rebates or fixed rates for a period to name a few.
With so many different incentives and 100's of offers, it can be confusing to find the offer that's right for you. Depending on your electricity usage, location and even your bill paying habits an offer that is good for one person may not be the right option for another.