How to Switch to a New Energy Plan and Save Money

Are you so done with the current energy plan you have for your home? If you feel like you are spending too much money for it, then you probably are. It is possible to switch over from an old house plan to a new one, but only with careful research and consideration. Don’t choose a new plan just because you like the advertising. You should take a number of factors into consideration before you switch from an old plan to a new one. Here are several suggestions for doing so:

energy plan

Check the Exit Fees

Does your old plan impose exit fees when you want to switch to a new plan? It’s common for most plan to charge early termination fees. If so, you might want to consider how much you have to pay for exiting the current plan. If you are renting an apartment or a home, the fee could end up being considerable. If you are trying to switch over from a long-term home plan, do the math to see if paying the exit fee is worth the money. If you stand to save a lot of money with a new plan on the long run, then paying exit fees now would be worth it.

Compare Old Plan with Many New Ones

Before you make the final decision, do use an energy plan comparison service to compare new plans with the one you already have. Energy plan comparison sites and tools are also useful for making comparisons between new plans as well. Your local government may offer a comparison service. Otherwise, you can also use a popular service like Econnex, which actually gives rates in dollar values instead of percentages. Make sure you are using an impartial and well-regarded service for comparing energy plans. If you can sign up directly with the energy provider online, then that would be a plus too.

Look at Your Old Bills

You can only make an informed decision in choosing a new power plan by looking at old bills. Dig out the old energy bills for the past year. You should examine these for what you are being charged for, such as all fees, taxes, possible discounts, and so on. Importantly, look how many units of electricity your home has consumed monthly in the past year. You can only assume that the pattern would be roughly the same in the upcoming months. If you are adding new members or appliances to your home, then the power consumption would increase. When you choose a new plan, you should be able to get better rates for the level of power consumption at home. Otherwise, there’s not much point to switching in the first place. So carefully check the current usage and supply charges. Then use the information to compare the rates for other plans available for your postcode.

Power consumption can fluctuate between months and seasons. Many households spend more money on energy during winter and summer. Therefore, the best way to understand how much kilowatts of energy your home needs is to calculate the average daily usage, not the monthly usage. You can take the average for each season as well. Then you can consider whether it’s best to choose a new plan with a flat rate or pay based on energy consumption. Always double check a plan’s rate per each kilowatt of power to make an informed decision.