With electricity price hikes predicted to be just around the corner, a consumer research company is advising Queenslanders to consider changing their plan.
Canstar Blue has crunched the numbers of fixed and variable electricity plans and believe fixed plans would give households the best reprieve from increasing costs.
![Canstar Blue recommends Queenslanders consider changing their electricity plans to a fixed-price plan.](/web/20170508233732im_/http://www.brisbanetimes.com.au/content/dam/images/z/s/y/5/w/image.related.articleLeadwide.620x349.gw0a7o.png/1494241792699.jpg)
Canstar said a fixed energy plan is an agreement that your electricity provider will not change the rates it charges you for power over a set period, usually two years.
"By guaranteeing today's rates on electricity for two years, customers are protected from two rounds of rising power prices and are afforded a bit more certainty when budgeting ahead," Canstar said.
A variable-rate plan means the power company is free to change the rates it charges you at any time, provided they give you notice.
In Queensland, prices typically change in July each year.
"The challenge for consumers is to decide whether there is better long-term value in fixing energy prices, or sticking with variable rates in the hope they don't rise too much," Canstar said.
"Without a crystal ball, you'll never know for sure. But our research shows that taking a gamble on fixed rates could be a smart move."
Canstar put their theory to test by comparing AGL and Energy Australia's Queensland energy plans and calculating the averaged fixed and variable price of the two retailers.
Based on yearly usage and then broken down into quarterly payments, Canstar found, based on statistics from Australian Energy Regulator for a five-person household on Brisbane's Energex network, you could save about $28 a quarter.
Average fixed rate: $527.63
Average variable rate: $499.70
Canstar said consumers needed to consider that variable rate prices will continue to climb over the next few years.
"If prices increase by more than 5 per cent or so in the first year, those on a fixed-rate plan will likely be onto a winner straight away. And by the time the second round of price changes comes in, the savings will really start to add up," Canstar said.
The Queensland Consumers Association spokesman Ian Jarratt said he encouraged Queenslanders to check if they were eligible for a rebate worth up to $330 a year on their electricity bills.
"Eligibility for the rebate has been widened recently to include Commonwealth Heath Care Card holders and asylum seekers," he said.
"Holders of Pensioner Concession Cards, Queensland Seniors Cards and Department of Veterans' Affairs Gold Cards (who receive the War Widow/er Pension or special rate TPI Pension) are already eligible for the electricity rebate.
"Anyone holding one of these cards should also check whether they are receiving the rebate and if not should consider applying for it."