How do I pick a power company?

What’s the difference between power companies?

It can be hard to understand the difference between power companies and what they offer. The way they package up their plans and services vary, so it is useful to understand what the differences are.

At a basic level, there is a difference between how much they charge you for electricity. Power companies have two different charges for their customers: the fixed charge and a variable charge.

The fixed charge is a daily fee you pay for being connected to the network. This doesn’t change, regardless of how much electricity you use. The variable charge is what you pay for the electricity you use. This is often called the unit price and is measured in cents per Kilowatt-hour (c/kWh).

The variable charge can often look similar between different power companies, sometimes only varying by a few cents, but small differences can add up over a long period of time.

Fixed charges are also different between different companies, so it pays to check what this charge is when comparing different companies. If you sign up to a fixed-term power plan, you may need to stay with that company for a set period. Leaving early can result in break fees, which are outlined in the plan’s terms and conditions. Some power plans do not have fixed terms or exit fees.

Some power companies offer cheaper electricity during certain parts of the day. For example, they may offer cheaper rates for using electricity during the day. These are called ‘time-of-use’ plans and may suit people who are at home during the day.

Power companies sometimes offer different promotions and deals for their customers. For example, they might give you credit when you first sign up or they might give you a discount for referring someone else to use them. Others have specific plans dedicated to particular energy needs, such as plans for charging an electric vehicle.

Some power companies provide ‘bundles’, where you can use them for other services such as gas or internet and often get a discount for doing so. Read our article about bundled services to learn more about whether a bundled plan is right for you.

For some customers, having a call centre is important, so they might not choose a power company that only has online customer service.

How do I know what power company is right for me?

Choosing the right power company can be overwhelming and confusing with all the different options available.

Billy and PowerSwitch are free services that recommend the power company that would be cheapest for you based on your usage. They are very easy to use – you simply upload a power bill and answer a few questions, and they use that information to suggest a power company.

If you don’t have a power bill, you can just answer a few simple questions about your electricity use, such as how much electricity you use and your appliances.

Both these services are completely independent, so you can trust that they’re putting forward the best option for you.

Your current power company can also provide advice on what energy plan is best for you if you want to stay with them. The contact details and options for how to contact your power company will be on their website and on your power bill. Power companies must make it easy for you to contact them, including their support and wellbeing teams, and most power companies have 0800 numbers, emails or online chat channels you can access for free.

I want to switch power companies – is it easy to do?

Switching power companies is easy to do, and there shouldn’t be any interruption to your power supply. When you sign up with a new provider, they will often handle everything for you, including telling your current provider that you’re changing power companies. Your old provider will send a final bill after the switch date and once the account is settled, they will close your account.

I can’t join a power company because of my credit rating – what should I do?

Sometimes power companies might not offer a certain service to a new customer if they fail a credit check. This can be stressful, but here are options available.

Firstly, you should contact the power company to discuss options available for you. For example, you may be able to have part of your WINZ benefit directed to your power bill. Sometimes, working with a budgeting agency can help as it shows the power company that you can manage your payments. Some households are eligible for a pre-pay service, where you pay in advance for the electricity you use.

You can also try other power companies, as each power company has a different way of assessing what customers they take on.