Why is Electricity Comparison Crucial for Getting the Best Prices?

There are more than 40 electricity providers in Australia powering the country. Owing to an extensive number of players in the market, there is also a considerable competition. Since all of them offer different prices, comparing the same before opting for one is crucial.

Although a time-consuming task, electricity price comparison can be a well worth it, if done correctly. You have to compare all the providers and their rates in detail to determine the savings under each plan.

Why is comparing the electricity rates crucial in the first place?

Electricity providers in Australia are famous for price differentiation. They sell the same product at different prices to different customers. Hence, price differentiation also goes by the name of price discrimination. Not only customers but prices also differ with location.

They charge for the energy you are buying, network care as well as maintenance. Therefore, assessment of the prices offered by different electricity providers is essential.

Why are electricity rates different with suppliers?

A number of factors contribute to the variable electricity rates among the suppliers.

Some of these include:

1.  Operating costs

Depending on the size of a plant and technology used, the operating costs of a power company differ. Hence, they charge a specific amount to their customers for the same.

2.  Maintenance costs

Power suppliers have to undergo maintenance costs for keeping their network and distribution system up-to-date. Customers want uninterrupted power supply, and regular maintenance ensures the same.

Moreover, extreme weather conditions can damage these lines, thus, increasing the maintenance costs.

When you are buying power, you are also paying for the maintenance costs. Hence, compare electricity rates becomes critical for getting the best price.

3.  Government regulations

Various regulations set by local government bodies can also influence the electricity prices. Regulated and unregulated prices can have an impact on these rates.

4.  Fuel costs

Demand for electricity can have a direct impact on fuel costs. If the demand for electricity is high, the demand for fuel will also be the same. This will lead to increasing fuel prices. Consequently, high fuel prices will lead to higher electricity prices.

5.  Weather

Particular areas can have a high demand for electricity owing to extreme heat or cold. This, in turn, can increase electricity rates.

Now, what to consider when comparing rates?

When you compare electricity rates , do consider the following questions:

1. What is your average electricity usage?
2. Do these suppliers have a peak and off-peak rates?
3. What are the other charges you would have to pay?
4. Do these suppliers require you to sign a contract for a specific period?
5. What is the green energy rating of each supplier?
6. What is the supply charge of each supplier?

How to compare electricity rates?

Thanks to several websites, comparing electricity rates is quite straightforward nowadays. Not only electricity but you can compare gas as well. All you have to do is enter your postcode, and the website will provide you with a few options selecting which will show you the best deals.

You might have to invest some time on such websites for electricity comparison; at the end, you will end up saving a significant amount of your hard-earned money on the power supply.