Big discounts do not always mean big savings. 

Is a 25% discount always better than 20% discount?  Are the “pay on time” energy discounts you receive on your energy bills really 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.

While retailers promote discounts on electricity usage charges, most consumers are not aware of what the discount actually applies to.  One of the best discount offers you can get is a discount on energy rates and service to property charges.  Service to property charges are fixed and cover the costs of supplying electricity or gas to your premises for each day of your billing period, regardless of how much energy you use.

Take for example a typical Australian family of four who are paying $600 per quarter for electricity use.  A 25% discount on electricity rates usage for paying bills on time would result in a total cost of approximately $488.04, with savings of $111.96.  A 20% discount on both electricity rates usage and supply charges results in a total cost of $480 with savings of $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.  Also note if the discount includes 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 simple 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 that will 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*.  You can call customer service at Lumo Energy for a 10 Minute check-up, to can find out if you are getting the best energy deal, it is that easy.

Below are some links to media talking about Lumo Energy's tips to spot a great discount energy product.

Adelaide Advertiser

Courier Mail

Daily Telegraph

*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

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.


Date: 10 September 2014
Category: Energy Facts

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