Pitfalls to Avoid When Looking for the Cheapest Energy Provider in NSW

Pitfalls to Avoid When Looking for the Cheapest Energy Provider in NSW

New South Wales is located in the southeastern region of Australia. It is known for the world’s most famous vibrant cities like Sydney and Newcastle. According to the latest data, NSW uses one-quarter of Australia’s total energy.

Energy Providers in NSW

Energy bills are one of the primary household expenses for families in NSW. Around 30 energy providers are serving the population of NSW. However, the rates offered by various energy providers differ, making it important for you to choose the cheapest energy provider NSW in order to reduce your expenses.

With so many options to choose from, choosing the cheapest energy provider can be a daunting task. Here are common pitfalls you should avoid when selecting an energy provider.

Not Understanding the Fixed-Rate and Variable Rates.

As per the latest data, the population of NSW stands at 8.2 million. So if you are a resident of NSW and are searching for the best energy provider, you need to understand fixed and variable rates.

Fixed-Rate-the fixed rate does not depend on how much energy you consume. The actual energy consumption is mentioned under service to property or daily supply charge. Some electricity retailers display it as the daily rate in your bill.

Variable Rate –It refers to the amount you pay for each electricity unit you use and is measured per kilowatt-hour. Your electricity bill might have different variable charges.

Not Comparing Variable Rates

The variable rates depend on how much electricity you consume. In electricity bills, you will see a mention of the first block of energy charged at a specific rate. The next block of energy has a higher rate. The rates for the first block may vary depending on your energy provider. Similarly, the rates for extra energy would also vary with each energy provider.

As per the latest data, the first block might be 0 to 1500 kilowatt-hours. So, when looking for the cheapest energy provider in NSW, check both variable and fixed rates and make sure you are paying only what is agreed.

Not Comparing Peak and Off-Peak Rates.

As per the latest data, the average electricity bill of NSW households is around $1421. Your electricity bills have two different rates – peak rates and off-peak rates. Peak hours refer to when the electricity network has a high load, like weekends and holidays. Off-peak refers to the time when the electricity network is not heavily loaded, like midnight.

Before choosing any electricity provider, compare their peak and off-peak rates. You need to also analyse your energy consumption during peak hours and off-peak hours to get an idea about the estimated bill.

Not Checking the Company’s Reputation and Customer Service.

Energy services, just like every other industry, will have its share of good and bad service providers. Some may offer excellent, uninterrupted service with good customer support. In contrast, others may promise lower rates but have lots of outages and interruptions with no proper customer support team to address your grievances.

Customer service is as important as rates. For example, if there is a power failure in your region or neighbourhood, you expect the electricity provider to rush their technical team to the spot and fix the issue.

You can check the customer ratings for different electricity providers in NSW to get an idea about their customer service and user-friendly policies.

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