In Australia, you will have to purchase electricity and gas from an energy retailer. The number of retailers, plans, rates, and discounts vary based on your location, but you still need to pick one plan to ensure you have an uninterrupted supply of gas and electricity to your home or business.
Since electricity and gas are unavoidable necessities of everyday life, every homeowner in the world is constantly on the lookout for a cheap electricity plan that will help them save a little bit more every month.
There are two common kinds of plans – Standard energy contracts and market energy contracts.
So which one should you choose? First, it is important to understand them both.
Standard Energy Contract
A standard or standing energy contract is easy to understand. It does not have any exit fee, but it does not have any discounts either. The rules of this contract are set by the law.
When you sign with an energy retailer, you will enter into a standard contract by default.
Market Energy Contracts
Market energy contracts are more flexible, and provide you with various options to choose from. These offer discounts, provided you meet certain conditions.
Simple things like paying the energy bill with a debit card, paying on time, and opting to receive the correspondence by email and not by post can help you save a lot in the market energy contracts.
The market contract expires at a set time, and the discounts expire too. When this happens, the retailer provides energy without any special discounts, and you will need to get in touch with your energy supplier to set up a new contract.
As stated before, some market energy contracts may be available only to a select few people who meet the eligibility criteria, so you must know whether or not you’re eligible for the plan you want before you contact your energy retailer.
Some contracts may also include an exit fee, so remember to check with your supplier before you sign the contract.
Shop Around For The Best Price
The prices that are applicable on the standard and market contract vary from one retailer to another and from one contract to another. The market energy contracts are cheaper, especially when you add all the discounts available.
Check the discounts, rates, and benefit period when shopping for cheap electricity. Most of them advertise the discount only for a year or two. After this, the customer is forced to renew their plan and pay a higher rate.
Choosing Between The Two Rates
As a customer, you should be vigilant about what you choose. Compare the benefits and the price of the standard and the market energy contracts. You should keep your long-term usage in mind. Some energy retailers mask a high rate behind lucrative instant discounts.
Also, keep in mind that the standard retail contract includes various conditions that cannot be changed by any retailer. In the market retail contract, the set conditions are limited, and the other terms can be changed in the contract.