FAQs

iSelect is one of the most switched on energy experts since Benjamin Franklin and we’re here to enlighten you. So, we’ve put together some Frequently Asked Questions to help shed a little light on the whole electricity deregulation situation in NSW. Mr. Franklin would be proud.

• What do you mean by electricity deregulation?
  Traditionally the Independent Pricing and Regulatory Tribunal (IPART) in NSW set power prices for those on regulated contracts (i.e. government price-controlled plans). With the introduction of NSW electricity deregulation, they won't. So if you are on a regulated contract, as soon as deregulation is introduced in NSW, the government will no longer regulate it. That's deregulation in action, which makes for greater competition and means you could save on your electricity bill.
• Who will it affect?
  Around 35% - 40% of NSW households are on regulated electricity contracts and will be directly affected by the deregulation. If you are one of those on a regulated contract it’ll be a big deal – you’ll get a 1.5% price reduction straight off the bat when the deregulation is introduced (with some retailers introducing the 1.5% flat price reduction from 1 July onwards).
  
  That's a great reduction, but you might be able to get a better deal if you shop around. You may not be aware but if you're on a regulated contract, you’ve actually been able to switch to a different supplier and tariff for quite some time.
  
  So basically, if you're on a regulated contract you could save as much as $300 per year if you move to a market based contract through iSelect*. But if you’re already on a market based contract, the shake-up means it’s still a good time to find yourself some great savings.
  
  *Note: $300 savings claim based on a NSW household switching from a standard to market contract sold through iSelect from 1 July. Costs depend on use, meter type and distribution zone.
• How do I know which contract I'm on?
  It can be a little confusing, but don't worry. If your electricity contract doesn't have a fixed-term period, discount, or other incentive you're most likely on a regulated contract. Otherwise you could already be on a market contract. Still in the dark? Give us a call on 13 89 88 and we'll help you work it out quick smart.
• What's a market based contract?
  Market contracts can vary by retailer and customer, but must reflect minimum terms and conditions. Some market contracts are only available to specific customers while others are more generally available. Typically, market contracts offer discounts on the retailer's standard rates, customer loyalty bonuses, award programs, or free subscriptions. Additional discounts may be offered for prompt payment of bills, or for direct debit bill payments. These contracts typically have a fixed duration and some have exit fees for early withdrawal.
• What if I don't want to switch to a market based contract?
  Truth is, you don't have to. The government will approve transitional tariff arrangements that will take effect when electricity deregulation is passed in NSW. However, we do recommend that you look at what else is available.
• Should I care?
  Why yes, yes you should. Deregulation means NSW electricity providers can set their own prices and things could get more competitive. This means you'll get the chance to reduce those pesky electricity bills, as long as you do some shopping around.
• Will there be a penalty if I move from a standard to market contract?
  There are no penalties or exit fees from your electricity retailer for moving from a standard to market contract..
• Are prices going to skyrocket?
  Electricity providers won't want to price themselves out of the market and in fact they’ll be competing with each other for your business. That means with a little bit of research you might be able to save up to $300*.
  
  *Note: $300 savings claim based on a NSW household switching from a standard to market contract sold through iSelect from 1 July. Costs depend on use, meter type and distribution zone.
• Will I have to spend ages trudging through boring electricity providers' websites?
  You might – unless you can find a helpful, friendly, energy expert to do all the grunt work for you. Someone who’s panel include the three biggest providers in NSW that collectively service more than 80% of the NSW retail electricity market, will sort through all this deregulation talk, and will find you a great deal. That's what iSelect is here for! We're one of the best energy experts since Benjamin Franklin invented the stuff. Click on the link below and we'll sort you out, quick as a flash.
• Benjamin who?
  Benjamin Franklin was a politician, philosopher, author, inventor, and an all-round cool guy from the 18th century. He discovered electricity, invented glasses, wrote a bunch of books, and helped found the United States. He was also big on free markets and would probably have approved of all this deregulation stuff.