3 things you may not know about energy comparison
Energy comparison websites can be helpful way to reduce your energy costs. However, you need to be able to compare the market in full to get the best deal.
Using energy comparison websites can be an effective way to reduce your energy costs, but sometimes the experience can be a bit jarring.
You are not actually comparing the whole market
You may think that if you visit a comparison site, you would be comparing all of the energy providers in the market. Truth be told, this is not the case.
Per the below extract from the recent ACCC inquiry into the energy market most of the household names like Compare the Market, Energy Watch and iSelect compare less than half of the actual energy retailers. Why would they not show the whole market?
Two reasons come to mind:
- If you choose a retailer that they do not have a deal with, they do not get paid. Simple.
- They only have information about deals from their partners, not the whole market. They could not tell you about other deals even if they wanted to.
Comparison websites really are resellers of electricity and gas. It is the current commercial and operational model that will restrict them from ever showing a full market comparison.
It is pretty hard to do a proper price comparison
One size does not fit all when working out how much you are likely to spend on energy. Here are some of the complexities:
- Everyone’s energy situation is different. Your hot water system may be electric and run off a ‘controlled load’ or it could run be heated by your mains connected natural gas.
You may have installed a solar system or even have a battery, like the Tesla Powerwall.
- There are different types of energy meters. Some are able to keep track of how much electricity you use every 15 minutes, some are read every three months.
- There are heaps of different pricing tariffs (like ‘Single rate’ or ‘Time of Use’) and every energy retailer has a different way of incentivising you to take up their product.
All of this makes for a fairly complicated calculation. Most comparison sites are not equiped to do these.
It is very expensive to get your attention, so they have to make it count
Comparison sites spend a lot of money to ensure that when you search for energy comparison, you find them. It costs a comparison site upwards of $20 on average when you click on a sponsored energy related add. If you then “bounce” off to a different site, that money is lost.
Given this high cost of getting your attention, aggressive selling techniques have evolved to ensure that a profit can be made. Have you ever been offered a different product to the one you were searching for? Have you received a lot of phone calls after you entered your number into a comparison website? This is why.
How Handled addresses these challenges
Handled will always show you the deals from every energy supplier in your postcode. We will switch or update your energy plan whether we get paid for it or not. This is a part of fully empowering you as the energy user. We earn our fees from energy retailers for running promotions in our fully transparent marketplace.
Handled has made it really easy to understand what deal you are on and how much energy you use. We present this back to you when you provide us with your bill.
We use our advanced billing engine to present your list of deal options in your personal energy marketplace.
Handled grows predominantly by word of mouth. So, if you use our free service and enjoy it, do us a favour and pass it forward!