Spotting the best Early Bird Discount
Is a 25% discount really better than a 20% discount? Are energy retailers’ “pay on time” offers saving you as much as you think? Pay on time energy discounts are one of the primary marketing tools energy retailers use to entice customers to switch providers however, they do not always reveal the true value of savings.
Most retailers promote discounts off electricity usage charges, which only make up a fraction of your total bill. A better offer to consider would be one that takes the discount off energy rates AND service to property charges. Service to property charges are fixed and cover the costs of supplying electricity or gas to your home or business, regardless of how much energy you use.
25% pay on time discount vs. 20%
A household paying $600 per quarter for electricity with a 25% discount on electricity usage only would result in a total cost of approximately $488.04, saving $111.96. However, a 20% discount on both electricity rates usage and supply charges results in a total cost of $480, saving $120.
“The key things to look at when reviewing a discount are: What is the discount being applied to? Is it the rates alone? How long does the discount apply for? Always check the rates that are being discounted for example, peak, off peak, shoulder and so forth. Does the discount cover service to property charges? You should then check the contract terms,” explained Tim Harrington, Executive General Manager of Marketing and Sales at Lumo Energy.
He went on to say, “If you follow these steps, you are well on your way to making sure you are getting the best discount possible.”
Knowing how to spot the best deal from an energy retailer is complicated and there are a great many discounts in the market. Lumo Energy is providing a few key considerations to empower people to make the right choices when looking for an energy retailer.
Lumo Energy currently offers up to 20% off electricity and up to 12% off gas when customers pay their bill on time with its Lumo Advantage package*. The discount applies to service to property fees and energy usage including peak, off peak and shoulder*. Call 131 LUMO to find out if you are getting the best energy deal, it is that easy.
Find out more about our early bird discount Lumo Advantage.
*For eligible new VIC residential customers who sign up to Lumo Advantage product. Discount applies to energy usage and service to property charges (which are subject to change), when you pay in full by 5pm on the due date. See full Terms and Conditions at lumoenergy.com.au.
Disclaimer: The $600 per quarter example for a typical Australian family is for illustrative purposes only and is not reflective of all customers. The 25% discount example is inclusive of electricity rates only. The 20% discount example is inclusive of both electricity rates and supply charges. Both examples are calculated by using identical electricity rates and supply charges.
For media enquiries please contact:
Tom Hughes | Client Manager Dig&Fish | 03 9827 4466 | 0400 121 538 | firstname.lastname@example.org
4 June 2015
Category: Lumo Community