Choosing the Right Electricity Plan for Better Value and Savings
Published October 8, 2025
There are discrepancies between the States and what is offered from the Electricity prices’ perspective in Australia. In WA, NT and TAS there is no option but to use one specific energy retailer since there is just one option for supplying your gas and electricity. But in VIC, NSW, SA and QLD the prices of electricity are deregulated so it becomes a more competitive arena for energy sellers. And thus, these States enjoy choice for electricity suppliers. And although choices are always good, the expertise to effectively compare them has increasingly become important.
Understanding precisely what to look for when shopping for electricity plans puts you at the ideal electricity bargains and discounts for your family and you. Utility Market is aware of how difficult it is to decipher the fine print on most electricity plans. If you want to get the maximum value, choosing the right electricity plan is essential.
Electricity Source
Before we dive into the ins and outs of comparing electricity plans, it should be noted that all retailers buy all their electricity from the National Electricity Market. Retailers do get free rein to set their prices as they choose, though, because they bear the cost of connecting their customers to the grid, providing them with their supply, billing their customers, and providing any other free services that they can.
That being the case, let’s move on to the critical information to search for when comparing electricity plans:
Electricity Plans
When reviewing an electricity plan, customers need to be absolutely clear on the following:
Price per kWh
- Supply charge
- Discounts
- Potential Rebates
- Potential Fees
- Contract Length/Benefit Period
Rates
Rates are split into 2 parts:
- Supply charge– is the fee you are charged irrespective of how much electricity you consume and is billed daily
- Usage charges– is how much electricity you consume and is billed per kWh
Electrical usage charges are billed differently depending on the configuration of the meter at your residence. The conventional segregations are single rate, two rate, or time of use.
Single rates are the most popular form and can also be known as anytime or Flat rate. The same rate is charged for electricity used at any given time of day or night with a single rate meter.
Two rate meters can charge at 2 rates known as peak and off-peak electricity use and tend to have a dedicated circuit or controlled load which will meter the use of a dedicated appliance like a hot water service.
Peak rates are more costly and are charged for the peak days and peak hours of electricity demand. The off-peak rates are late at night, on weekends or only quantify the use of the dedicated appliance and are normally charged at a lower rate. Time of use plans extend one step beyond the two rate plans and utilize peak, off-peak, and shoulder rates based on the time of day of electricity usage. The structure of the rates could also have blocks or steps. This is where various blocks of your electricity consumption are charged at varying rates.
Meter Types
At the moment, there are dumb meters and smart meters that consumers can have.
Dumb meters are ordinary mechanical meters, whereas smart meters that have recently been implemented throughout Victoria are self-reading meters that send electricity consumption data directly to the distributor and the provider every 30 minutes. The capability of the smart meter to do this eliminates the need for manual readers and can lower connection and disconnection charges after the initial installation.
The smart meter also enables consumers to maximize time of use programs because they have more informed choices regarding when to consume electricity to reap maximum savings.
In a Nutshell
When it comes to choosing providers beyond the fees and prices, it is worth catching a glimpse at other features which can be offered when need arises. Call Utility Market so that we can check out the available plans as per your needs and help you switch to something better. With expert guidance, choosing the right electricity plan becomes simple, ensuring you get the best value for money.
