Find the energy to go through your bills

COMPARING energy price fact sheets provided by retailers is necessary but can be confusing and if not read carefully can cost consumers a packet, according to Simon Downes, from comparison company Canstar Blue.

Mr Downes has identified five traps consumers face.

1. GST

An energy price fact sheet will detail the daily supply and usage charges you need to pay.

“The problem is energy retailers display their pricing both excluding and including GST,” Mr Downes said. “The pricing that excludes GST is normally in the column to the left, meaning you’re likely to see these details first. If you’re in a rush, they might be all you see.”

Mr Downes says printing off fact sheets and highlighting the important details can help.

2. PRICE CHANGES

Finding a competitive energy rate is one thing, but most rates are variable and will change “at least every 12 months, possibly more regularly,” Mr Downes said. “Retailers must notify customers of price changes, so read every bill and any other correspondence.”

Mr Downes also said comparing rates on your most recent bill with a previous one helped detect missed changes.

3. HIDDEN FEES

Check the breakdown of your bills for any mystery fees, such as charges for receiving a paper bill rather than digitally, paying bills by certain methods and even moving house.

“These are often displayed towards the bottom of price fact sheets, so read the whole document” Mr Downes said.

4. CONTRACT LENGTHS VERSUS BENEFIT PERIODS

Retailers lure new customers with discounts, but most do not last the length of a contract.

“While all energy plans are technically a contract, most are simply ongoing agreements,” Mr Downes said. “If you have an ongoing contract, the benefit will expire before the end of it.”

Information on the contract length and benefit period should be close to the top of a price fact sheet.

5. BILL FREQUENCY

Quarterly bills can hit the family budget and many consumers prefer to pay monthly, but not all retailers allow this, so check your fact sheet for billing details.