Where we used to offer energy plans with discounts on what were variable rates, we now only offer energy plans that have either fixed rates or variable rates – and the choice is yours. Your energy rate is what determines the cost of your energy usage and is a good way to compare different energy plans.
Guaranteed rate (fixed rate)
A fixed rate means that we won’t change the price of your energy during the life of your plan, regardless of any changes in the energy market. This includes any changes to the Default Market Offer (DMO) or Victorian Default Offer (VDO) (i.e., the maximum price that retailers can charge on standard contracts, set by the government).
Variable rate
A variable rate means that the price of your energy could go up or down with the energy market or change due to changes to the DMO and VDO.
Factors that can affect your rate
Sometimes, changing external factors mean we’ll increase or decrease our prices to match. For example:
1. Changes to the wholesale price of energy
2. Changes to network costs
3. Changes to the DMO and VDO
For customers living in Victoria, rate changes take effect on 1 January. In ACT, NSW, QLD and SA, rate changes are brought in on 1 July.
Why choose fixed and why choose variable?
A fixed rate offers certainty around your pricing. Some customers find this helps with managing bills, particularly those living in larger households where energy usage may fluctuate.
But if you live alone or in a small house and don’t use a lot of energy, you’re probably less likely to feel the impact of a rate change compared to larger households, so a variable rate may suit you more. There’s even a chance you could save a little too, if the price of energy drops!
Ready to compare plans? Take a look at our fixed and variable options.