All about electricity and gas providers in NSW

Typically, your bill will include supply charges and usage charges for electricity and gas if you have it. Supply charges are a fixed price, which you pay for connecting your house to the electricity or gas distribution network, regardless of how much energy you use. As the name suggests, usage charges are calculated based on your household or business’s electricity or gas consumption. You can check your most recent energy bill to find out the rates you’re currently paying for the energy consumed in your household or business. 

Both households and businesses can access different types of electricity tariffs, which affects the usage charges they pay:

• Single rate tariffs require you to pay the same rate for buying electricity irrespective of when you operate your electrical appliances. 
• Time-of-use tariffs apply a different rate depending on whether you use more electricity during peak hours or off-peak or shoulder hours.
• Controlled load tariffs apply to electricity usage for a single appliance or equipment.
• Solar feed-in tariffs are the credit you receive for supplying solar energy not used in your home into the grid. 

Similarly, usage charges for a gas connection can vary between seasons in some places. You could end up paying more for gas usage in winter than in summer if your energy provider charges seasonal rates. 

Understanding supply and usage tariffs can help you choose an energy plan that’s better suited to your requirements. For instance, if you expect to use less electricity or gas, you could choose an energy plan with a lower supply cost rather than a lower usage cost. Since your usage charges are likely to be on the lower side, you may save money by opting for a lower supply cost. On the other hand, if your home has several electrical appliances that are used daily, you may be better off with an energy plan that offers more flexibility in choosing electricity tariffs. 

Most electricity and gas providers in NSW can change the tariff at any time during a billing period unless you’re on a fixed-rate contract. However, your energy supplier needs to give you a written notification of the change, usually sent with the first bill after the rate change becomes effective. This statement should specify your consumption and the charges applied at the old and new rates. If you have any questions regarding the change of rates, you should contact your energy supplier as soon as possible. If you find the new tariffs unaffordable or would like to find a better deal, compare the rates offered by the best energy providers in NSW. Once you have information on other offers in the market, you may be able to get your current energy provider to negotiate a better deal. This will mean you won’t need to switch providers. 

Energy prices also differ based on the distribution network. There are three distribution networks for gas and electricity supply in NSW: 

• Ausgrid covers the wider Sydney area up to Newcastle, inland to Muswellbrook, Barry and Merriwa.
• Endeavour Energy neighbours Ausgrid and covers Sydney’s greater west, Southern Highlands, Illawarra, Wollongong, the South Coast of NSW and the Blue Mountains.
• Essential Energy's distribution network includes the remainder of NSW and parts of south-west QLD.  

If you’re looking for the cheapest electricity and gas provider in Sydney, make sure you provide the right postcode when comparing energy plans, so you’re included in the correct network. Your energy supplier could also charge you other fees if you’re signing up for a new contract or requesting additional meter readings. Some providers offer discounts if you opt for online billing rather than paper, as well as other discounts and offers. Compare energy plans and tariffs offered by energy suppliers in NSW.

Energy rates are not the same across Australia. Each state or territory can have different regulations that specify how energy is distributed and priced. In NSW, the energy market is deregulated, meaning that different electricity and gas suppliers offer different prices - and discounts. For this reason, you’ll need to compare energy plans offered in NSW to get the best deal. Furthermore, energy plans for residential customers differ from the energy plans offered by business energy providers in NSW, with varying pricing structures and tariffs. NSW residents can usually choose between the standard and market retail contracts offered by their energy supplier. 

A market retail contract, or market offer, requires customers to pay for energy at the rates set by the energy retailer. These rates may sometimes be incentivised through discounts or bill credits. Some retailers may offer benefits like a fixed rate for a specified period, also called the benefit period, which typically lasts for 12 to 24 months. While you can score significant discounts with a market offer, your rate can change at any time after the benefit period. This makes it worthwhile to regularly compare plans from different energy providers to ensure you’re not paying more than you need to.  

A standard contract - sometimes called a standing offer contract or a default contract - is an energy plan with rates that aren’t set by the energy provider. These plans are usually for people that have either never negotiated an energy contract with a retailer or haven’t changed retailers. If you’re on a standard contract, your electricity and gas provider cannot charge you more than the default market offer mandated under the National Energy Retail Rules. For some standard contracts, the tariffs applicable are mandated by the NSW government. Standard contracts are likely to offer less competitive rates than market retail contracts, and providers don’t usually offer discounts or other benefits. 

Energy providers may offer several market contract options for customers in different locations, each providing different features and benefits, including access to rewards programs in some cases. Most energy suppliers in Sydney and beyond also offer “bundled” rates if you have both your electricity and gas with the same provider. Ideally, when you first sign up for a contract, you should put in your postcode to confirm which energy plans are available in your neighbourhood. 

You may not have the option to switch to a standard contract, but you can choose from various market retail contracts. However, when switching energy providers in NSW, you should consider the possible costs of terminating your contract. These costs could include the cost of getting an early meter reading if necessary. The contract you’re switching to may not be active until a meter reading has been taken, sometimes by both the old and new energy providers. This is unlikely, however, to cause any interruption to your electricity or gas supply. You should also check your first bill from your new provider to ensure everything is what you signed up for. This includes both the charges and any special terms or discounts.

Some of the best gas and electricity providers in NSW offer both fixed-rate and variable-rate energy plans. While neither may be better than the other, each can result in energy cost savings depending on your choice. For instance, going for a variable-rate plan could mean paying less for electricity or gas now but running the risk of a sudden increase in energy prices later. On the other hand, a fixed-rate plan can take away both the uncertainty of any future changes to energy costs and the benefits of any potential decrease in energy prices. Not all electricity and gas providers in NSW offer fixed-rate energy plans. And providers offering variable-rate energy plans often give discounts and benefits that lower your monthly energy bill. These sorts of discounts and offers are not generally available with fixed-rate plans.

As most electricity plans are variable-rate plans, your energy retailer could change your tariff at any time. This price change would cause a rude shock for you when you receive your next bill. If you opt for a fixed-rate plan, your electricity or gas tariff won’t change for a specified period, usually 12 to 24 months. You should consider checking if you can terminate the fixed-rate plan early and if there is an exit fee, just in case energy prices drop during your fixed term. Also, ensure that the fixed rate you’re locking in is lower than the most discounted variable rate in the market. This will avoid you breaking a fixed-rate contract ahead of time. You could also compare providers and choose the cheapest energy provider in NSW that’s offering a contract that you can enter into or exit at any time.