How to choose the right energy plan in Australia

Choosing the right energy plan comes down to how you use energy at home. The cheapest-looking option isn't always the best. To get the most value, look for a plan that matches your usage patterns, helps you better manage your costs, and fits how your household runs day to day.

In short, look for:

• A plan that matches when and how you use energy.
• Competitive usage rates — not just headline discounts.
• A tariff that suits your routine.
• Flexible ways to pay and manage your bills.

1. Start with how your household uses energy

Think about when and how you use energy most. It can help narrow down the type of tariff that's likely to suit you best.

• Home during the day? Look for a plan that suits higher daytime usage, especially if appliances, heating or cooling run regularly.
• Busy evenings at home? Look for a flat rate or a well-matched time-of-use plan to help avoid higher peak pricing.

3. Choose the right tariff type

The main tariff types you'll come across are:

• Flat rate: the same price all day — works well if your energy use is fairly consistent throughout the day.
• Time-of-use: different rates depending on when you use energy — works well if you can use more energy during off-peak times.
• Demand: you're charged based on both the electricity you use and your highest peak demand during specified periods. You might benefit from this if you can spread your energy use more evenly.

The right option depends on your routine and when you use energy most.

Learn more about how energy tariffs work

4. Consider how predictable you want your bills to be

Some plans offer more consistent pricing, while others can vary depending on how you use energy.

If avoiding bill spikes matters to you, it's worth factoring that into your choice of plan.

5. Look at flexibility and support

Flexibility can make a big difference, especially if your situation changes over time. Look at things like:

• Payment options
• Billing frequency
• Support if things change

Having the right support in place can make managing your bills easier long term.

When you're comparing plans, it helps to understand a few key terms that can make a big difference to what you end up paying. You don't need to know every detail, but these basics can make comparing plans much easier.

Usage rate

Your usage rate is the price you pay for the energy you use, usually shown in cents per kWh. It's one of the biggest factors in what you'll pay over time.

Supply charge

A supply charge is a daily cost to stay connected to the energy network. You'll pay this no matter how much energy you use.

Discounts

Discounts are often shown as a percentage off your rates or bill. They can look appealing, but they don't always mean the lowest overall cost. It's worth looking at the underlying rates as well.

Tariff

A tariff is the way you're charge for energy. For example, a flat rate charges the same price all day, while time-of-use tariffs charge different rates depending on when you use energy.

Feed-in tariff (FiT)

If you have solar panels, this is the rate you're paid for sending excess energy back to the grid. It can affect your overall bill depending on how much energy you export.

Now that you understand the key concepts, here are some common ways energy plans are designed:

• Plans with consistent pricing — can suit households that use energy across different times of the day.
• Plans with time-based pricing — can work well if you can shift some of your energy usage to off-peak times.
• Plans with solar feed-in options — relevant if you own solar panels and export excess energy back to the grid.
• Plans for electric vehicles — designed for EV owners, often with lower rates during off-peak periods for overnight charging.