Article:
How to choose the best energy plan
21 July 2025 | 4 minute read
Step 1: Understand the Basics
If you’ve ever looked at your electricity bill and thought, “Surely there’s a better deal than this?” — you’re not alone. With so many electricity providers and plans out there, it can feel overwhelming trying to work out which one’s right for you. The good news? Finding the best electricity plan in Australia doesn’t have to be complicated.
Here’s a plain-English guide to help you compare electricity plans and save money without needing a degree in energy markets.
Let’s start by breaking down some common terms you’ll see when comparing electricity plans:
Usage charges: This is the rate you pay for the electricity you actually use (measured in cents per kilowatt-hour or c/kWh).
Daily supply charge: A flat fee you pay every day to stay connected to the grid, even if you don’t use any electricity.
Tariff types: You might see single rate, time of use, or controlled load tariffs. In short:
- Single rate = one price no matter what time of day you use power.
- Time of use = different rates depending on peak/off-peak hours.
- Controlled load = a cheaper rate for appliances like electric hot water systems that run at night.
Step 2: Compare Plans (Not Just Prices)
Cheapest isn’t always best. When comparing electricity plans in Australia, look beyond just the headline discount. Consider:
Actual usage rates and daily charges: These can add up more than the discount saves you.
Contract terms: Are there exit fees or fixed contract periods?
Solar feed-in tariffs: If you’ve got solar panels, check how much the provider pays you for excess energy.
Billing and payment options: Some providers offer discounts for paying on time or using direct debit.
Step 3: Use a Comparison Site
The easiest way to compare electricity plans is to use a reliable electricity comparison website that shows all the details side-by-side. Websites like Compare Electric (this website!) to help you quickly find a better deal for your home or small business.
Quick Checklist: What to Look for in an Electricity Plan
Simple, easy-to-understand pricing
Low usage and daily supply charges
No lock-in contract or exit fees
Good solar feed-in tariff (if you have panels)
Flexible billing/payment options
Strong customer reviews or reputation
Green energy options if sustainability matters to you
✅ Check an energy comparison website
Step 4: Check for Hidden Fees
Some plans look great upfront but come with sneaky fees that bite later. Always check the Energy Fact Sheet or Basic Plan Information Document (BPID) that each provider is required to supply. This document outlines the exact rates and fees for each plan in plain terms.
Final Tip: Set a Reminder to Review Every 12 Months
Electricity plans can change. The best way to make sure you’re not overpaying is to review your plan once a year. Set a calendar reminder to compare again and see if a better deal has popped up.
Ready to Find a Better Plan?
Select your state below and see if you can save. Comparing electricity providers in Australia has never been easier — and a few minutes could save you hundreds of dollars a year.