Should I shop around for electricity?

 Why do some people save hundreds on their electricity bill, while others just cop it on the chin every month? It’s not magic. It’s not a mate at the power company. It’s shopping around—and the numbers say it matters.

Should I shop around for electricity in Australia?

Short answer? Yes—unless you’re happy paying more for the same power.

Most Australians are paying more than they need to on electricity simply because they’ve never compared providers. According to the ACCC, customers who switched plans saved an average of $180 a year. And that’s not even factoring in solar, battery incentives, or smart usage plans.

Electricity isn’t like rent or mortgages where moving takes effort. Changing retailers can be done online in minutes—no technician visits, no downtime. So why don’t more people do it?

Let’s break it down.

Isn’t switching power companies a hassle?

Nope. That’s one of the biggest myths out there.

Here’s how easy it really is:

  • Find a better deal online (comparison sites or through an energy broker).

  • Enter your details (usually just an address and recent bill).

  • Your new provider handles the switch.

No calls to cancel. No service interruptions. You just keep using electricity—except it costs less.

The psychological reason many don’t switch? Status quo bias. We tend to stick with what we know, even if it's costing us. And energy providers know it. Some even use "lazy tax" pricing, where loyal customers are charged more than new ones.

How often should I compare electricity plans?

Every 6 to 12 months is ideal, especially if:

  • Your discount period has expired (many plans have 12-month intro rates).

  • Your household usage has changed.

  • There’s been a price increase.

Providers tweak their rates often—sometimes quietly. What was competitive last year may be a rip-off today.

Also, different seasons affect usage patterns. If your summer bills are high due to aircon, it’s worth reassessing your plan before the heat kicks in.

Will I actually save money by switching?

Not always—but usually.

Here’s what affects your savings:

  • Usage rates: what you pay per kilowatt-hour (kWh).

  • Daily supply charges: fixed fees just for being connected.

  • Discounts and conditions: some plans reward you for paying on time or using direct debit.

  • Feed-in tariffs: if you’ve got solar panels, you want the highest return per kWh fed back to the grid.

Example:
Someone living in suburban Brisbane using 20kWh a day could save $300–$500 a year by switching from a big-name provider to a smaller competitor with sharper rates.

But don’t just chase the cheapest plan—look at the whole offer. Some plans may look cheap upfront but have nasty penalties or low feed-in tariffs.

Can an energy broker help me switch?

Yes—and they’re more common than you think.

An energy broker is like a mortgage broker but for electricity and gas. They compare multiple providers (some of which don’t even advertise publicly) and can recommend plans based on your usage and location.

Why use one?

  • Save time: They do the shopping around for you.

  • Expert insights: They know which providers have sneaky clauses or unreliable customer service.

  • Better rates: Some brokers have access to “broker-only” deals not found online.

Just be aware—some brokers are aligned with specific providers. So always ask whether they compare the full market or only a select few.

What should I watch out for when comparing?

Keep your eyes peeled for these common traps:

  • Conditional discounts: like 20% off… but only if you pay on time, every time.

  • Exit fees: rare these days, but some long-term contracts still include them.

  • Introductory rates: plans that spike after 12 months.

  • Solar feed-in changes: if you’re relying on a decent return from your panels, check those numbers.

Use government comparison tools like Energy Made Easy or Victoria Energy Compare to get an unbiased look.

What if I’ve got solar or batteries?

Then it’s even more important to shop around.

Some providers offer feed-in tariffs as low as 4c/kWh. Others go up to 10c or more. That’s a massive difference if you’re exporting regularly.

Some plans also reward battery usage during peak times—effectively turning your home into a tiny power station. These “virtual power plant” (VPP) models are on the rise and can stack up serious savings.

If you've made the investment in solar or batteries, make sure your energy plan rewards you for it—not penalises you with low returns or high supply charges.

Are smaller electricity providers risky?

Smaller doesn’t mean dodgy.

In fact, many of the most competitive and transparent providers in Australia are newer entrants. They often:

  • Offer lower overheads (fewer marketing budgets = better rates)

  • Are digital-first (no paper bills, easy apps)

  • Provide more flexible contracts

That said, check reviews, customer service ratings, and whether the provider is licensed with the AER (Australian Energy Regulator).

A good litmus test? Search the provider name plus “complaints” or “ACCC” before signing up.

Why don’t more people switch?

Two big behavioural biases at play:

  1. Loss aversion – We worry about losing the “devil we know”, even if the new plan is better.

  2. Effort justification – We assume the process is harder than it is, so we don’t start.

But here’s the thing: most people spend more time choosing a café brunch than they do picking an energy plan. And brunch doesn’t come with a $400 saving.

FAQ: Common Questions About Switching Electricity Providers

Q: Does switching affect my power supply?
No. You’ll still get electricity through the same wires. Only your bill changes.

Q: Can I switch if I rent?
Yes. As long as the electricity account is in your name, you can change providers.

Q: Is the cheapest provider always the best?
Not always. Factor in customer service, app usability, and solar tariffs.

Sometimes saving money isn’t about changing your habits—it’s about changing your provider. And if you're unsure where to start, a good energy broker can help decode the fine print and find the deal that suits your usage, lifestyle, and goals. For a real-world breakdown of how to compare options, this piece dives into who's actually offering the cheapest electricity deals in Australia right now.

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