How to Switch Energy Providers with Econnex

With the deregulation of most of the market, an increasing number of Aussies can enjoy the freedom of switching away from an energy provider that no longer serves them. If they feel the urge to switch their energy provider, there is a good chance of finding a better deal that is only waiting to be discovered next door.  

So, in case you’re contemplating something similar but the mere question of “how to switch energy providers the right way” is making your head hurt, you’ve landed at the right place.  

This blog is an attempt to end the confusion and complexities involved in switching once and for all, helping you make a more informed decision. Read on to get one step closer to finding an energy provider that better fits your budget and preferences! 

When to consider switching your energy provider? 

As much as switching your energy provider requires a good amount of calculative evaluation, going about it is sometimes the need of the hour. Your circumstances may force you to take the shot, or it could just be the urge to find a more worthwhile plan. Here are some reasons (and benefits) that are good enough to make you switch: 

• A change in address - If you’re moving into a new residence, looking for a new energy plan is entirely justified. Whether your existing energy plan no longer caters to the size of your new household, or you have simply moved out of your provider’s service area, it is an excellent reason to search for a new (and better) plan. 
• The expiry of the benefit period - Once you have taken advantage of the honeymoon period of your discounted plan (i.e., the discount benefit period), it is usually in your best interests to start searching for another deal that offers you better perks (no judgments there!) 
• The opportunity to splurge less - Looking for a deal that offers better pricing never hurts anyone (especially not your pockets)! If your energy prices have not been fitting the bill lately, you almost always have the chance to find another plan that will.  
• Going green - With the concerning rise of greenhouse gas emissions, many responsible customers understand the need to switch to renewable sources of energy. So, if you care to do your part, skimming through the market for an energy retailer that is concerned about the same cause as you make for a fair reason to switch. 
• Finding a better contract - At the end of the day, everyone seeks a flexible contract for their convenience. For instance, if you come across a plan offering the freedom to terminate early without any penalties or advertising an attractive discount benefit period, it might be in your best interest to take the leap! Also, remember that, good customer service is always a big plus. 
• Bundling - Combining two or more plans into one always saves you from having to keep a tab on the separate bills of your electricity and gas plans. The best part? As a reward for bundling, you can also get your hands on several lucrative deals and discounts. 

How to change energy provider: Things to keep in mind 

Switching energy providers isn’t as complicated as you may think as long as you know the key points to factor in. So before leaping hastily into a decision, make sure you’ve weighed the pros and cons, have a clear understanding of all the terms and conditions, and are in a better position to decide what’s best for you. 

• Take a close analysis of your current plan

Before placing your best bet on another plan, make it a point to understand your current plan inside and out to ensure that switching is indeed a worthwhile option for you. There are chances (though slim) of you encountering some exit fees if you choose to switch your energy provider before the tenure of your plan ends. Don’t forget to take the termination fees into account. Besides, analyse the usage rate that you’re charged and the discounts that you get to enjoy under your current plan so you can weigh it against the new one. 

• Clear your dues owed  

If you’ve been a punctual customer who pays their bills on time, that will pay off when you consider switching. However, if some bills are overdue from your end, moving forward will only be possible once you settle them. Note that you can still switch if you haven’t completed your current billing cycle, provided that you have paid all your outstanding bills. 

• Understand your energy requirements

When it comes to your energy plan, what works for you might be different from what works for someone else! That’s because energy usage varies from household to household. A family of five will consume electricity in a way different from, say, a house of two. So, the best way to arrive at a plan meant for you is to work out your energy usage (from past bills) and find a plan that best caters to it accordingly. 

• Usage and Supply Charges

These charges represent the cost of the electricity consumed by a household or business. Usage charges are typically measured in cents per kilowatt-hour (c/kWh). The more electricity you use, the higher your usage charges will be. On the other hand, supply charges cover the cost of providing and maintaining the electricity infrastructure necessary to deliver electricity to your property. Don’t forget to compare the usage and supply charges of your current plan with the new one to analyse the potential savings on offer. 

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How to switch energy provider: Points to consider in the new provider 

Whether you’ve made up your mind to switch or are merely pondering if there is a better deal that awaits, you must read through the terms and conditions of the new plan that you find attractive. That will help you better analyse the difference and understand what you’re getting yourself into.  

Here are some key points to look out for: 

1. Price - A default market offer or reference price cap the government sets decides the maximum bill amount energy companies can charge in NSW, SA, ACT, and SE QLD. In simpler terms, the energy price the retailer charges must be equal to or less than the default market price. Hence, plans that charge less than the reference price must secure top priority when shopping around. That’s because the market is quite competitive, and there is a strong chance of coming across energy providers ready to offer you a better price deal. 
2. Type of Offer - You’re likely to come across two kinds of plans: fixed rate and variable rate.  

In a fixed-rate plan, the electricity rate remains constant for the duration of a specified period, say 12 months to 24 months. This implies that the price fluctuations in wholesale electricity prices or market conditions will no longer be a point of concern for you for the time being since the rate you pay for electricity will remain unchanged.  

However, if you don’t wish to be locked into a contract, a variable plan might be the one for you. The electricity rate under a variable plan can fluctuate over time (mainly around January or July) based on various factors, including changes in wholesale electricity prices, market conditions, or regulatory changes. 

1. Incentives and Discounts. Another strategy energy retailers employ is offering conditional discounts, reward programs, sign-up offers, and bill credits to make the offer more tempting for customers in the competitive energy market. So make sure to make the best of it when shopping around for a new deal. However, beware! Don’t let these offers trap you into paying for concealed high usage and supply rates. 
2. Rebates or Concessions - Rebates or Concessions are financial incentives or discounts such as pensioner concessions, low-income household rebates, medical concessions, senior discounts, etc., offered to eligible customers to help them reduce their energy costs. It won’t hurt to factor them in as well whenever you plan on comparing your best options. 
3. Customer Service. It is a proven fact that if customer service isn’t up to the mark, everything else ceases to matter. So, make sure to do a proper background check on the new energy provider that you’re considering opting for, see how they handle service requests, and the trading hours that they are operational in. 

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How to switch energy providers in Australia with Econnex 

Now that you’re well-informed of all the key points to consider while switching, you can capitalise on your new knowledge. Don’t worry; we won’t let you do all the hard work on your own. We’re right by your side to make your job easier. With Econnex, you can compare the plans of our panel of prestigious retailers, including Energy Australia, Alinta Energy, AGL, Red Energy, Powershop, and more. All that is left to do after that is to switch to the one that fits best with your household needs by submitting an application via our platform. For your convenience, we boil down the process into three simple steps: 

• Fill in your postcode. 
• Compare your options and find the one that fits your energy needs. 
• Submit the application 

Note: Remember to notify your old provider when you switch. Given the cutthroat competition in the market, you might as well see if they’re prepared to offer a better deal.  

Once the new retailer approves your application, most of the transition process is taken care of on your behalf.  

So, all you have to do is sit back, compare your best options, and finally, switch smart with Econnex! 

Frequently Asked Questions 

How long does it take to switch energy providers? 

Having to invest about two to three months into of switching electricity providers is all a matter of the past now. Now, if you wish to make the switch, it will only take two business days due to the use of an estimated bill instead of a manual meter reading. However, to switch gas providers, your energy distributor is still required to carry out a final meter reading. So, that process may still take up to 90 days. 

Can I change electricity supplier in my state? 

More often than not, you can! 

If you’re lucky to live in states where the energy market is deregulated, you can make the switch. Such states include the Australian Capital Territory (ACT), New South Wales (NSW), South Australia, South East Queensland, and Victoria. Some residents of Western Australia are also eligible to change gas providers. For Tasmanians and Northern Territory residents, the options are pretty limited. For many Western Australians and citizens living outside of South-East Queensland, it is unfortunately impossible to switch for now. 

Does it cost to switch energy providers? 

Exploring the market and comparing a range of energy providers through our platform has never cost anyone a buck. However, if you’re considering ending your current contract prematurely after the cooling-off period (i.e. 10 business days), you might be asked to pay a termination fee as a penalty (which is stated in your contract beforehand). Besides, if you’re moving, there can be a connection fee attached as well.