Bill smoothing
Expert tips for helping manage your electricity bills
Knowing how to manage your electricity bills and usage is a great way to save on your bills, and our Head of Energy, Meredith O’Brien, has some tips to help.
Meredith O'Brien
Head of Energy
Track your usage
If you have a smart meter, you can usually track your energy use online through your retailer’s website portal or app. While your retailer will let you know if your actual usage differs from the predicted electricity usage, keeping an eye on it yourself can help you understand your electricity habits. This is helpful for understanding where you may be able to cut back or move your heavy usage to an off-peak time period if you’re on a time of use tariff.
Check if you’re eligible for concessions
While some government concessions may be applied automatically to eligible households, it’s important to check if you meet the criteria for any other concessions or rebates. If you do, contact your retailer to add them to your electricity plan, you will be required to provide proof that you’re eligible.
Compare and save
One of the best ways to potentially save on your energy bill is to compare your options! With Compare the Market’s online comparison tool, you can search between different retailers and electricity plans for one that may suit the energy use needs of your household.
What to know about bill smoothing and your energy bill
What is bill smoothing?
If you struggle with paying larger electricity bills in summer but find electricity bills from typically off-peak months much more manageable, you may benefit from bill smoothing. With bill smoothing, you’ll typically pay smaller amounts towards your bill more frequently. It ‘smooths’ your bill by having you make regular instalments that are usually the same amount each time.
Retailers may use your previous energy consumption or the consumption of similar households to estimate what your annual usage will be and charge you accordingly. For example, if you paid a total of $1,200 for your electricity last year, you may be charged $120 a month under bill smoothing.
Who is eligible for bill smoothing?
In most cases, retailers will offer bill smoothing as an option for both residential and business customers. You may have the choice to pay with bill smoothing or to pay according to your energy usage each bill cycle.
Bill smoothing may be a way to help manage your energy costs and avoid bill shock, by making a regular payment amount each month.
If you are experiencing financial hardship or struggling to pay your bills on time, you should contact your retailer to discuss different payment options available to you. Their details can be located on the front page of your electricity bill.
Managing electricity bills
How does bill smoothing help?
By making regular bill smoothing payments, you can avoid getting caught out when your next bill arrives. By changing your payment frequency to weekly, fortnightly or monthly payments, your bill may be smaller and more regular, and therefore easier to manage than unexpected big bills every quarter.
How to sign up to bill smoothing
To sign up for bill smoothing, you may have to contact your retailer and ask to be placed on the payment plan. You may also be able to go directly to your retailer’s website or app and enable bill smoothing yourself.
You can also set up direct debit using your chosen credit card, savings account, PayPal or other available option, so that your bill payment can be taken out automatically from your bank account without stress. Your retailer may also offer other payment options, such as by cheque, BPAY or paying in-person at a post office.
What is a payment holiday?
A payment holiday is a type of hardship program where your electricity bills are paused (e.g. for a month) if you’re experiencing temporary financial hardship, such as losing your job. If you already have bill smoothing in place when this happens, the amount you owe on your energy bill is paused and distributed across the remaining months in your annual billing cycle.
Will I still receive electricity bills?
Yes, you’ll still receive bills as usual, even when on a bill smoothing plan. Your energy bill will include information on the rates, your energy usage and any discounts or concessions you’re receiving.
When you’re on bill smoothing, you may also receive review letters twice a year, in accordance with your billing cycle. This is to review how your meter readings are tracking against your expected usage for the year. If your energy usage is different than expected, your retailer may offer options on how to adjust your bill smoothing payment to better match your actual usage and avoid either over- or under-paying.
If you’re paying more than your actual energy usage, this money may be credited towards your bill at the six-monthly review. You can also request a refund.
Meet our Head of Energy, Meredith O’Brien
As the Head of Energy at Compare the Market, Meredith O’Brien believes in educating Australian customers about the everchanging gas and electricity market so they can adjust their energy usage habits and get the most out of their energy plans.
Meredith has six years within the energy industry, following 15 years of experience in financial services and is currently studying a Master of Business Administration. Meredith is a dedicated customer advocate who is passionate about empowering Australians to find the right products to suit their needs by removing the confusion from comparing.