Switching energy providers is one of the easy ways to cut costs, but many Australians unknowingly fall into traps that end up costing them more. Hidden fees, confusing contract terms, and overlooked discounts are just a few things that can turn a simple switch into a frustrating experience. The good news is, these mistakes are avoidable — if you know what to look for.
In fact, Bowen tells consumers ‘to shop around’ as electricity bills jump as much as 9pc.
Whether you’re looking for a better deal or aiming to Switch Energy suppliers, here are the biggest mistakes people make when changing energy providers — and how to avoid them.
Which Mistakes Should You Avoid When Switching Energy Suppliers?
Ignoring Exit Fees
Some energy contracts have exit fees that can quickly eat into your expected savings. If you’re leaving your current provider before your contract ends, check the terms carefully. Even a small fee could outweigh the savings you’re hoping to achieve with a new provider.
What to Do: Contact your current provider and ask if there are any exit fees. If there are, compare them with your potential savings to decide if switching is still worthwhile.
Overlooking Contract Terms
Many people jump at a lower rate without reading the contract details. Energy providers often have conditions that can impact your bills, such as peak usage rates, discounts that expire, or fixed-term conditions, so Check Energy Australia.
Plus, they do not even consider customer satisfaction. According to recent Roy Morgan research, as worries about the grid’s reliability and skyrocketing electricity costs grew, customer satisfaction with electricity suppliers fell 4.7% points to 69.6% between March 2022 and May 2022.
What to Do: Review the full contract before signing. Make sure you understand key points like billing cycles, rate changes, and any conditions tied to discounts. Also, consider how they treat their customers.
Falling for Introductory Offers
Providers sometimes advertise low introductory rates to attract new customers. These deals may look great at first, but the rates can increase significantly after the initial period ends.
What to Do: Ask the provider how long the promotional rate lasts and what the standard rate will be afterward. Calculate your costs across a full year to see if the savings are genuine.
Ignoring Usage Patterns
Every household has different energy needs, yet people often switch energy suppliers without considering their usage patterns. This mistake can result in paying more than necessary.
What to Do: Review your recent energy bills and note when your usage is highest. If you use more power at night, for example, a provider with lower off-peak rates may suit you better.
Forgetting to Ask About Fees
Some energy plans have hidden fees that aren’t always obvious. Connection fees, disconnection fees, and late payment charges can all add unexpected costs.
What to Do: Ask your potential provider for a full breakdown of all charges before committing.
Failing to Check Customer Support Quality
A cheaper plan may seem appealing, but poor customer service can lead to headaches down the track. Delays, unhelpful support staff, or billing issues can create unnecessary stress.
What to Do: Check energy Australia reviews and ask friends or family about their experiences with different providers. Reliable customer service is just as important as finding a good rate.
Not Considering Green Energy Options
Many households want to reduce their environmental impact but overlook green energy options when switching. Some providers offer renewable energy plans that are competitively priced.
What to Do: Ask about green energy options when comparing plans. Choosing renewable energy can lower your carbon footprint without adding significant costs.
Assuming All Providers Bill the Same Way
Billing methods can vary widely. Some providers charge monthly, while others use quarterly billing cycles. If you switch without considering this, your budgeting may be affected.
What to Do: Choose a billing cycle that fits your cash flow. Monthly billing can help you manage expenses more easily, while quarterly bills may suit those who prefer to pay in larger installments.
Forgetting to Update Concessions or Discounts
If you receive government concessions, rebates, or discounts, failing to transfer them to your new provider can result in higher bills.
What to Do: Contact your new provider as soon as possible to ensure your discounts are applied to your account.
Switching Without Comparing Plans
Some people switch providers simply because a friend or neighbour recommended a plan. While their experience may have been positive, it doesn’t mean the same plan is right for you.
What to Do: Compare energy Australia with Deal Expert to compare multiple providers. Look at rates, contract terms, and additional fees to find the best option for your household.
Ignoring Smart Meter Compatibility
If you have a smart meter, your new provider must be compatible with it. Otherwise, you may lose access to helpful features like real-time usage tracking.
What to Do: Ask potential providers if they support your smart meter and if their systems can track your usage accurately.
Forgetting to Read the Fine Print
Contracts can include conditions that aren’t obvious at first glance. Some discounts only apply if you pay on time or sign up for direct debit. Missing these details can lead to unexpected costs.
What to Do: Take your time reviewing the contract before committing. Don’t hesitate to ask questions if anything isn’t clear.
Ignoring Peak and Off-Peak Rates
Some plans have variable rates based on the time of day. Failing to account for this could mean your bills go up unexpectedly.
What to Do: Check the rate structure to see if peak or off-peak pricing applies. If you use energy during high-cost periods, you may want to look for a provider with better peak rates.
Delaying the Switch
Even after choosing a new provider, some people delay taking action. This can mean missing out on savings or paying more than necessary for longer.
What to Do: Once you’ve chosen a provider, schedule the switch promptly. Energy providers usually handle the process, making it easy for you.
Failing to Track Your First Bill
People often assume their new bill will automatically reflect the agreed-upon rate. However, mistakes can happen, and incorrect billing can result in overpayment.
What to Do: Carefully review your first bill from the new provider. Confirm that the rates, discounts, and fees match what you were promised.
Don’t Waste Time or Money — Let Deal Expert Help!
In the most recent “sucker punch” for those who are struggling financially, millions of Australian homes will soon notice an increase in their power rates.
Canstar’s study predicts that Australian homes would see a $200 increase in their power costs beginning on July 1. Hence, finding a better deal is a NEED.
Mistakes during an energy switch can lead to unexpected costs and frustrating experiences. Deal Expert makes it easy to compare energy Australia, avoid hidden fees, and find a plan that suits your household.
With our expert service, you can even access options like Same Day Electricity Connection, ensuring your home stays powered without delays. Whether you’re moving house or looking for a better deal, Deal Expert can help you switch energy suppliers with confidence.
Need help finding a better plan? Contact Deal Expert today and start saving sooner.