Understanding how electricity prices are set is key to making informed decisions about your energy plan. In Australia, the energy market operates as a wholesale market where retailers purchase electricity and then sell it to you, the consumer. The energy price you pay is influenced by various factors, including wholesale costs, network charges, environmental schemes, and retailer margins.
Two main types of offers exist in the market:
- Market Offers: These have flexible pricing that can change over time, reflecting fluctuations in the wholesale market.
- Standing Offers: These have fixed prices set by the retailer, providing more price stability but potentially missing out on lower rates during market dips.
It’s important to note that not all retailers offer both types of offers. At GoSwitch, we can help you navigate these options and find a plan that suits your needs and budget.