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Electricity companies explained

The electricity markets in most Australian states have been deregulation for a number of years, meaning that business and residential energy customers now have the power to choose the energy company that best suits their needs.

The energy supply process is complex and there are numerous energy companies competing for business; it can difficult for consumers to work out exactly what they need to do to make sure they are getting the best deal.

Before energy reaches your home or business, it must be generated, transmitted, distributed and sold. The energy companies responsible for generating, transmitting or distributing your electricity supple have fixed according to where you live, and have no direct impact of the amount you pay.

Energy retailers, on the other hand, are quite separate from energy generators and distributors. Energy retailers are responsible for connecting electricity to your home or business and deciding how much you pay for it.

In most Australian states there are a number of energy retailers operating in any given area, each battling it out to offer the most competitive rates and win the most customers.

If you haven’t gone through the process of comparing your current energy retailer and plan against the competition, it is very likely that you are paying the highest rate. The actual supply of electricity to your house is not affected if you end up switching to another retailer, just the price!

Switching energy retailers is fast, simple, costs you nothing and – best of all – could save you hundreds of dollars on bills each year. GoSwitch, of one Australia’s leading energy comparison sites, will do all the work for you in just a few minutes.

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