change tariffs

How to change tariffs to save.

Many people don't usually think about switching energy tariffs to save money, but they should. Changing your tariff can lead to lower electricity bills. However, it's not always straightforward to figure out the available options or if you're eligible to switch.

There are three distinct types of electricity tariffs:

Anytime Tariffs: Anytime tariffs are designed to keep electricity pricing straightforward. Also known as 'flat rate' tariffs, they offer a consistent rate for electricity consumption regardless of the time of day. Essentially, this means you pay an average rate over the entire day. While this may result in a slight premium to account for the retailer's effort in managing underlying costs, it's a simple and common choice. Anytime tariffs were the standard in the past, especially when basic accumulation meters were the primary means of measuring energy consumption.
Time of Use Tariffs: Time of Use tariffs divide the day into 2 to 4 time periods, each with a different electricity rate. These rates reflect the varying costs of energy supply and network infrastructure at different times. Peak periods, when demand is high and resources are strained, have higher rates, while off-peak periods, when electricity is abundant, come with significantly lower prices. Some Time of Use tariffs also feature a Shoulder period, bridging the gap between Peak and Off-peak rates.
Demand Tariffs: Demand tariffs include a 'capacity charge' based on the highest energy consumption spike within a billing period. While usage rates might be lower, an additional daily capacity charge is levied throughout the billing cycle based on the highest 30-minute peak consumption during the peak demand window (typically between 2-8pm on weekdays). These tariffs are more common for businesses, as households may be concerned about the impact of a single half-hour's peak usage on their overall energy costs. To consider a switch to a Demand Tariff, you should have a good grasp of your energy consumption over the month and the ability to manage your energy use. If you have a battery to offset demand charges, these tariffs may be worth exploring, but they are not always competitively priced, so careful consideration is necessary before making the switch.

Time Of Use and Demand tariffs are the default for new meters

The Australian Energy Regulator (AER) has been advocating for the adoption of cost-reflective tariffs. When households install solar panels or upgrade their old meters to smart meters, they typically transition to time-of-use and/or demand tariffs. When these tariffs are appropriately priced, they offer consumers the opportunity to lower their overall expenses. This reduction in bills is achieved by minimizing the use of high-cost peak electricity and shifting consumption to more affordable off-peak periods.

how to change tariffs

To switch your electricity tariff, get in touch with your current energy retailer. They will initiate the process with the network operator and inform you once it's completed. If this switch requires a meter upgrade, your retailer will typically handle it at no additional cost.

When considering a change in tariffs along with a retailer switch, you have two options:

Begin by switching retailers. Once the retailer transfer is finalized, request your new retailer to transition you to your preferred tariff (following the guidelines outlined below).
Alternatively, change your tariff with your current retailer first. After the tariff change is successfully implemented, proceed with switching retailers.

Attempting to simultaneously switch to a new retailer and adopt a new tariff type (if not compatible with your current meter) can be challenging. Most retailer online sign-up processes will display plans based on tariff types compatible with your existing meter, following network rules.

Please note that in many networks, if your current tariff is "closed to new customers" and you switch to another tariff, you may not have the option to revert to your previous tariff.

Smart Meter upgrades

To transition to a Time of Use or Demand Tariff, you'll need a smart meter to accurately track when electricity is consumed. In regions outside of Victoria, approximately only 20% of properties already have smart meters installed. Therefore, there's a good chance you'll require a smart meter upgrade. Your energy retailer can facilitate the installation of a new smart meter, typically at no additional cost. Once in place, these smart meters enable remote meter readings, usually transmitted daily through a 3G/4G connection, and provide more detailed meter data.

For households, this means the end of having meter readers visit your property and the elimination of estimated bills. Additionally, many retailers offer enhanced visibility of your energy usage, including data at least every half-hour and information about solar power exports through their app or website. With easy access to your energy consumption data, you can identify areas where adjustments can be made to further reduce your energy costs.

Changing Tariffs Guide