At a glance:
- Savings from switching energy companies can often outweigh any costs associated with switching.
- Select & Switch allows you to compare various offers from leading energy providers and switch within minutes.
- Moving to a new retailer or changing contracts won’t interrupt your electricity or gas supply.
The topic of energy plans is subject to many misconceptions. To illustrate, a common myth is that you will always save money by signing up for a fixed-rate plan. Fixed-rate plans may end up costing you more if your market rate declines because the market rate can fluctuate at any time.
Another widely-believed myth suggests all energy plans are the same. Read the fine print carefully before cancelling any plans because some may have hidden fees or penalties. It is important to carefully examine all of the terms and conditions of each plan before signing up since different plans offer different benefits and fees.
When it comes to energy plans, you need to separate fact from fiction. Understanding the myths about energy plans can help you select the best plan for your needs and budget.
Myth 1: “I cannot switch energy providers because I am under a contract.”
A contract is technically formed when you sign up with an electricity provider and agree to their terms and conditions. This contract would probably be better named as an agreement because of the absence of a locked-in period attached to the contract. Therefore, you will not be charged an exit fee to leave your existing electricity supplier and switch energy providers. You can then transfer to a new electricity provider at your discretion. You will only have to pay your old energy provider for any power used up until the time of switching. In the past, there were contracts, and sometimes, an exit fee was charged. Savings from switching energy companies often outweigh any costs associated with switching. So don’t miss out on potential savings – be sure to check the latest electricity rates and compare energy plans with a free comparison using the online tool at Select and Switch.
Myth 2: “Switching is too complicated, and my supply will get cut off.”
It’s not at all difficult to switch energy plans. All it takes is five minutes to switch providers. Nowadays, even researching and comparing energy plans is not very time-intensive. Select & Switch lets you compare energy providers and switch within minutes. It is easy to switch electricity providers using the free online comparison tool and online sign-up process from Select & Switch.
After you switch retailers, it takes the new retailer 2-3 business days to process your order and send you a welcome pack, with a 10-day cooling-off period. Customers can switch to a new energy retailer and benefit from a better energy offer. Moving to a new retailer or changing contracts won’t interrupt your electricity or gas supply. The supply will remain constant, and all that changes is a different energy company that will now bill you for your electricity and/or gas usage.
Myth 3: “Switching energy providers won’t save any money.”
Shopping around is a wise move to ensure you get the best deal. Other providers may offer discounts or incentives for new customers that you are not taking advantage of if you haven’t changed providers recently.
Several factors determine how much you might be able to save. These include where you live, what kind of plan you have, and how much energy you use. First-time switchers at Select & Switch can save, on average, $300-$350 a year and sometimes even more, but the amount you can save will vary depending upon your current energy plan. You can complete a free energy plan comparison in only a few minutes using the online tool provided by Select and Switch and find out how much you can potentially save. When you find a better energy plan, then you can also switch energy providers using the same online tool. So simple, quick, and easy.
Myth 4: “It is my landlord’s plan that I must follow.”
If you rent a home, you are not obligated to use the energy provider preferred by the property owner. Especially if you think you can get a better deal, you have the right to switch if you have your own name on the account and you pay the bills.
You cannot switch providers under your rental agreement if for example, the landlord pays the utility bills and they are not in your name;
Several properties (e.g., in an apartment block) are served by the same company within an embedded network.
Taking the time to read your lease carefully and asking questions before signing it is important. It can be beneficial to let the landlord pay the utility bills or to be a member of an embedded network. Always make sure you get a good understanding of what you’re getting yourself into before signing it. It may also be better for you to pay your own utility bills and have the freedom to search and find the best energy plans and offers available to you, as you could be much better off financially.
Myth 5: “Renewable energy plans are always more expensive.”
It is a widespread misconception that green energy is always more expensive. Despite their higher upfront costs, renewable energy sources like solar, wind, and hydroelectric power often outweigh the initial costs in the long run. The cost of renewable energy has decreased significantly in recent years due to advances in technology and increased investment in renewable energy. As a result, renewable energy is more affordable and accessible for households and businesses alike.
Fossil fuel costs, a non-renewable energy source, should be taken into consideration. In addition to being finite, these sources witness a constant surge in the cost of extraction and production. On the other hand, renewable energy sources are abundant, and the cost of generating them is on the decline. Renewable energy sources also generally do not create any greenhouse gas emissions, making them a more environmentally friendly option. It can save you money in the long run whilst safeguarding the planet for future generations by switching to green energy.
Finally, green energy is not always more expensive. Renewable energy may have a higher upfront cost, but its long-term advantages and decreased costs can make it a sustainable and smart choice.
Myth 6: “Fixed-rate and long-term energy plans always provide the best savings.”
The belief that long-term contracts guarantee lower rates and fixed-rate plans always provide the maximum savings is another common myth. Energy costs tend to be more predictable and stable when you have a long-term contract, but this does not necessarily guarantee the lowest rates. Long-term contracts and fixed-rate plans can end up costing you more if the market rate declines over time, depending on the market rate.
As a result, variable rate plans are more flexible and can result in significant savings when the market rate drops. A rise in the market rate, however, may also lead to higher costs. With rising costs in the current energy market in Australia it is probably worth considering a fixed-rate plan if you can find one that suits your needs and usage requirements.
You should carefully review the terms and conditions before signing a long-term contract or fixed-rate plan. Do read the fine print on any plans you are considering, as they may have hidden fees or penalties if you cancel early. So, you should weigh the advantages and disadvantages of all your options before arriving at a decision. Make sure you compare your options before you sign up for a fixed-rate or long-term energy plan.
Myth 7: “High daily supply charge automatically means a better deal.”
Energy plans can sometimes be marketed as better deals because of their high daily supply charges. In choosing an energy plan, daily supply charges are an important factor to take into account, but they are not the only ones. A plan’s overall cost, including usage charges, should also be taken into account.
If the daily supply charge is high, it is possible to incur higher overall costs despite a lower usage charge. Meanwhile, a low daily supply charge does not necessarily mean the best deal since the usage fee may be higher. When purchasing an energy plan, consider your energy usage habits and needs, along with your budget.
In conclusion, high daily supply charges don’t guarantee a good deal. Finding the right deal for your needs requires careful review and comparison of different energy plans. Use the free online comparison tool at Select and Switch to help you compare and consider the best electricity plan for you.
Myth 8: “There is no difference between energy companies.”
While this sentiment is understandable owing to the rising energy costs, you might be surprised at how different power companies can be when it comes to their rates. Depending on where you live and what kind of tariff you’re on, electricity usage rates may range from around 16 cents per kWh to more than 38 cents per kWh. Getting a bad deal can cause you having to pay hundreds more than you should each year.
The customer service and support offered by energy providers can also differ considerably. Customer support is available 24/7 in some cases. Others, however, go home at 5 pm on Friday. Price is almost always a key factor when deciding on which energy plan is best for you, but it is necessary to consider other factors as well. The customer service, available green energy offers, online usage tools, and other perks that may be provided by your energy provider are other items that you may wish to weigh up as part of your energy choice. Select and Switch has a free online energy plan comparison tool that allows you to understand any potential savings and the other features that the energy plans may provide. Head to Select and Switch today to compare energy plans and find out how much you may be able to save.
As we explored in this article, there are several myths and misconceptions about energy plans. It is believed that switching energy providers will not save money, long-term contracts guarantee the lowest rates, switching is too complicated, all energy plans are the same, and more.
To find the right energy plan for you, you must make an informed decision. When making a decision, you should weigh the benefits and drawbacks of all your options.
You can find the right energy plan for you by comparing providers, reviewing terms and conditions, and taking into account your budget and energy usage habits. Consider comparing and switching to find a competitive price. Energy plans come in many varieties, so you need to find one that suits your needs and saves you money.
Find an affordable deal for your energy needs. Select and Switch today! Identifying the best plan for you should not be hampered by myths and misconceptions about energy plans. Compare energy prices, switch, and start saving money today.