Energy prices have been steadily rising in Australia since 2000. If you compare the energy rates of 2008 and 2018, you will see a steep rise in prices by 117%. Australia follows an open grid model for the National Electricity Market. The energy generators and retailers participate in the electricity market and offer customers various energy plans to save on costs. Consumers in Australia have the option to switch to an energy retailer that offers the best energy plans.
Australia has around 30 energy providers, and NSW has around three electricity distributors serving different geographical regions. The energy prices vary with energy retailers. You can find the best energy plans offered by energy retailers after making the energy comparison NSW via different websites. Here are some tips for comparing different energy retailers in NSW.
What Should You Compare?
Type of Electricity Retailers
NSW heavily depends on non-renewable energy sources like coal, gas and petroleum products for electricity generation. As per recent data, coal accounts for 82.3% of total energy generation, while gas accounts for 6.9%. The NSW government invests in renewable energy sources for electricity generation. In 2008, renewable energy sources accounted for a 6.1% share in total energy generation, which has reached 10.85 in 2017.
If you are an environment-conscious resident, you can look for energy retailers that purchase electricity from renewable energy sources like solar and wind farms at websites that also offer energy comparison in NSW.
NSW energy retailers have to maintain the distribution network infrastructure to supply electricity to NSW residents and businesses. The energy retailers imposed a fixed cost on residential and commercial consumers to cover network maintenance costs.
It is a daily charge that is not related to the number of units used. The fixed charge varies with energy retailers. In NSW, the fixed charge ranges from $0.58c to $1.08 per day, depending on the network, retailer, and tariff.
Variable and Fixed Rate Plan
NSW energy retailers offer types of tariff plans to NSW consumers. They can either opt for a variable rate plan or a fixed-rate plan. There is a vast difference between both, and you need to understand them to compare energy retailers.
The electricity tariffs are not locked in a variable-rate plan, and the energy retailer can revise them as per market and cost changes. NSW electricity retailers revise electricity tariffs every 12 months for variable-rate plan
In a fixed-rate plan, the electricity tariff is locked for a certain period – 1 to 2 years. Retailers do not offer discounts to fixed-rate plan consumers, which are generally offered to variable-rate plan consumers. When comparing energy retailers, you need to consider variable and fixed-rate plans and corresponding tariffs AU dollars per kWh.
Single Rate and Off-Peak Rates
NSW electricity retailers offer energy plans with a single rate and off-peak rates. In the single rate model, the energy tariff per kWh is constant. You pay a higher tariff for energy units used during peak hours and a low tariff for off-peak and shoulder periods in the off-peak rate model. The single rate and off-peak rates vary with energy retailers, and they can serve as an excellent measure to compare them.
To sum up, these are some factors you need to focus on when comparing energy retailers in New South Wales.