Engaging with your electricity retailer
Wanting to talk to your retailer but not sure where to start? Level up your knowledge of common terms, and how to compare retailers so you can negotiate a better deal.

Choosing a retailer

You have the right to choose your electricity retailer.And similarly, the option to switch retailers when you are unhappy. While there may be different factors that affect your decision, some common factors for people include:

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1 This may not be the case if you are in an embedded network.
Price
Retailers will have varying prices and structures that will affect how much you pay each bill.
Benefits
Retailers may offer different types of discounts and benefits to standout from the competition.
GreenPower
Some retailers are accredited through the GreenPower program to provide renewable energy.
Contract details
Retailers have different contracts as well as terms and conditions that need to be considered.

How to find the best plan for you?

Energy Made Easy is a free Australian Government energy price comparison service for households and small businesses in New South Wales, Queensland, South Australia, Tasmania and the Australian Capital Territory. It can be used to find and compare home and small business electricity and gas plans.

When comparing plans you should consider more than the cents/kwh price. It's also important to look at factors like your usage patterns and retailer discounts.

Discounts and incentives you can ask about

Retailers offer different types of discounts to standout from the competition and help you save money on your bill. When comparing energy plans or talking to your current retailer here are some discounts to ask about:
Direct debit discount
When you let the retailer take the money for your bill straight from your credit card or bank account
Paperless billing discount
When you get your bill via email not in the mail
Bundling discount
When you get both your gas and electricity from the same retailer
Pay on time discount
When you pay the full amount on time

 

Check if the discount is off the total bill amount, or just one part of the bill. Also, make sure you check the prices as there may be another plan with no discounts but lower prices.


Benefit periods

You might have a plan that has a certain 'benefit' attached to it for a period of time (often called the 'benefit period'). Usually this is a price discount, but it can also be items like movie tickets or loyalty points. After the period ends, you will either pay full price again or no longer enjoy your benefits.

For example, you might sign up to a plan with a 12-month benefit period with a 10% discount. After 12 months, you stay on the same plan but no longer receive the discount. Retailers must tell you that your benefit period is ending at least 20 business days prior.

How your rates are determined

In NSW, retailers set their own prices for electricity - the price you will see on your bill. They calculate their prices to ensure that all the costs that go into providing electricity in your home are covered.

What is the relationship between Ausgrid and your retailer?

Ausgrid is an electricity distributor. We operate and maintain the electricity network (poles, wires, substations) that delivers electricity to homes, businesses, and essential services in our network area. 

Retailers purchase electricity and sell it to customers. They are responsible for establishing and maintaining your electricity account and billing.

In NSW, retailers set their own prices for electricity - the price you will see on your bill. They calculate their prices to ensure that all the costs that go into providing electricity to your home are covered.

One of the costs incurred by retailers is distribution costs, which are charged to retailers by distributors like Ausgrid.

Distribution costs cover important construction and maintenance to ensure the network is safe and reliable. This includes assets like poles and wires, as well as expanding the current grid to accommodate a growing number of households or businesses and supporting their increased electricity needs. At Ausgrid, we also invest in new technologies to make neighbourhoods more energy efficient, with solutions like community batteries.

The amount charged by distributors like Ausgrid isn't just for the operation of the network. About a quarter of network revenue is for Transgrid, to cover the cost of transmission, and NSW Government environmental schemes.

Wholesale costs
Energy retailers buy their electricity from the same wholesale electricity market. The cost of this electricity is factored into your price by your retailer. 
Transmission and Distribution costs
The network provider in your area (like Ausgrid) will charge your retailer for the costs of transporting electricity, and your retailer factors these costs into your retail prices. 
Environmental costs
Retailers have obligations set by governments to pursue climate change and renewable energy objectives. Retailers may include the cost of these schemes in your bill. 
Retail costs
Retailers will factor in their own operating costs, such as metering, billing and customer service.  

Talking to your retailer

Call your current retailer and ask about your current usage, what charges you are receiving and what plan would be best suited to your situation.

  • Questions to ask your retailer
    • How does my current plan compare with the standing offer?
    • Do you have a plan which is better than the standing offer?
    • Do you have a better deal at the moment?
    • Can I save more by paying on time or setting up a direct debit?
    • How else can I access further discounts on my bill?
    • I need help paying my bill. What assistance can you provide?
    • Am I eligible for a government concession or rebate?
    • Am I better off with a flat rate or time of use plan?
    • Are there any cancellation fees included in the contract?

     

     

  • Questions to ask your prospective retailer
    • Do you have a plan which is better than the standing offer?
    • Am I better off with a flat rate or time of use plan?
    • What are the setup fees for the plan?
    • Can I save more by paying on time or setting up a direct debit?
    • How else can I access further discounts on my bill?
    • What options will there be if I face financial hardship?
    • Are there any cancellation fees included in the contract?

     

Additional resources

If you are looking for some extra information about energy, check out these resources.