You have the right to choose your electricity retailer.1 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:
______
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.
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.
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.
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.
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.
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.
If you are looking for some extra information about energy, check out these resources.
