November 15, 2024
People have become increasingly dependent on electricity. As per recent data, a one-person household’s average annual electricity bill is around $1273 per year. Australia has an open electricity market where electricity retailers purchase electricity from the wholesale energy market and sell it to consumers.
The electricity tariff varies with energy retailers. If you want to lower your electricity bills, you need to look for the cheapest energy company. Here are a few benefits of finding one.
Australia’s open energy market model allows you to choose energy retailers. You can determine your needs; consider electricity tariffs and usage charges while selecting an energy retailer.
By selecting the cheapest energy company, you know what electricity tariff you pay and how much money you can save through cheap energy plans. The electricity retailer cannot force you to select a particular energy plan and have complete control over your electricity spending.
When you choose the best electricity retailer, you get the benefit of convenient, utility-based billing. You can continue with the monthly payment model or opt for quarterly billing.
Choosing the cheapest electricity retailer does not disrupt your electricity supply in any way, and you can continue with your routine work like you do. You have to apply to a new electricity retailer, and the energy company will do the rest.
A large part of electricity in Australia comes from burning fossil fuels like coal, oil, and gas. Fossil fuels are non-renewable sources of energy, and their prices continue to rise every year.
Rising prices automatically lead to an increase in production costs that in turn lead to a rise in electricity prices, increasing your electricity bills. When you choose the cheapest electricity retailer, you get the benefit of low and fixed rates.
The Australian government has heavily invested around $1.4 billion in renewable sources of energy. The government provides grants, tax credits, and loan programs to companies investing in renewable energy projects.
As per recent data, the cost of solar energy per kWh is around $0.06, while that of coal-based electricity is 3.2 cents per kWh. Hence, there is no doubt solar energy is cheaper than coal-based electricity.
Many electricity retailers purchase power from solar and wind farms that offer cheaper electricity than energy companies that generate electricity by burning fossil fuels. The rising costs of coal, gas, and oil are passed to consumers.
On the other hand, the cheapest energy companies buy electricity from solar and wind farms that use renewable sources of energy that are available in abundance and cheap in Australia. Hence, these energy companies can offer low-cost electricity to their consumers, which results in lower electricity bills.
Solar energy is not only a cheap and renewable form of electricity but also 100% green energy, meaning there are no chemical fumes or substances or any other kind of pollution caused due to the generation or consumption of solar energy.
When you choose the cheapest electricity retailer, you are also helping the environment and reducing your carbon footprint.
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Disclaimer: The information provided on the website is only for informational purposes and is not intended to, constitute legal advice, instead of all information, content, and other available materials.
