So you’ve just come “off-contract” or you think you could get a better deal on your energy bill by switching things up. Shopping around is always a good idea, but the energy market is a complicated beast so here are a few things to think about while you’re on the hunt.
- Am I locked in? How much will it cost me to leave?
Sometimes suppliers attract new customers with tasty discounts attached to long-term contracts. If your current provider contract hasn’t expired then you’ll probably pay a fee to exit early. So you’ll need to factor in that fee in your savings calculations.
- How much energy do I use?
Take a cold hard look at your last twelve months accounts. Even better, if you have a smart meter you can monitor your usage more accurately and even see what times of day you use the most power. Many energy companies charge a markup on the cost per kilowatt so the more power you use, the more money they make. This is potentially good for low energy users, but not so fair for people with high usage – say with an extra fridge or lots of tech toys
- What’s the “real” price?
All those tasty discounts are only as good as the base price that’s being discounted. It’s like any sale really, 50% off a Maserati is still a lot of money compared to the non-discounted price of a Toyota Corolla. But both cars can get you from A-to-B so you need to make sure you know and compare what the “real” rate is, not just the discount provided to know if you’re being offered value for money.
- What’s your customer profile? Are you a “savvy switcher” or a “passive payer”?
There’s no rights or wrongs here, but it pays to be realistic about how involved you want to get as an energy consumer. If you like to keep an eye on rates and the fine print, know exactly how many kilowatts that hot shower costs and don’t mind the hassle of switching regularly then chances are you’re doing well in the world of discounts and contracts. But it’s hard work and you need to stay vigilant, keeping up with price changes and being ready to switch the minute your contract expires (you can expect your rate per kilowatt to sneak back up the minute your discount term expires). If you are a more passive energy consumer then it pays to be realistic and look for a provider who can give you a good rate ongoing without all the discounting and shopping around.
How does Mojo stack up?
Mojo Power does energy a little differently. We don’t do discounts instead we offer low rates based on forecasts for wholesale energy prices on the per kilowatt rate. Instead, we charge one standard daily service fee for all customers, no matter how much energy you use. We believe this is fairer for everyone and to make it easier for consumers to monitor their energy usage we provide a mobile app so you can see how much energy you’re using when you’re using it, and you can even figure out what impact individual appliances are having on your bill.