4 Smart Caveats When Signing A Contract With Electricity Retailers

The Retailer As The Mediator- Dealer

As a consumer, you have the right to choose your electricity retailer. An electricity retailer is a mediator, an independent broker who arranges contracts and transactions between the energy supplier and the residents, or consumer. A contract with an energy supplier lasts for a period of 1 year to 5 years, with an agreed fixed price of the electricity component in the bill.

Electricity retailers quote on the electricity component of the bill, usually procuring 50 percent of the total charges. Other than the sole electricity charges, transmission and distribution charges are also levied in the bill.

Options When Buying Electricity

As a consumer, you can choose to buy energy according to:

• Regulated price plan (RPP)- you pay electricity according to every kilowatt you use. In some states, the regulated price plan is modified twice a year, on May and November.

• Electricity retailer- a contracted price per kwh is charged. That contracted price is actually agreed with the retailer, and in turn affects the electricity line charged in your bill. The state’s electricity board does not regulate this contract price, but on the other hand is determined by the energy retailer. The fixed price of the electricity is indicated in the bill for a number of years, but it is subject to change.

• Spot market pricing- available for consumers with interval meters. Electricity is charged according to wholesale market prices that change every hour.

An energy supplier charges consumers delivery, regulatory and debt retirement charges regardless of whether you choose to pay according to retailer or spot market pricing.

Of the three options, what is the best choice to buy electricity?  It depends on your needs and preferences. If you choose to sign a contract with an energy retailer, here are some tips to consider, but  a basic caveat is: “know who you’re dealing with”.

Before signing a contract with an energy retailer, note these tips:

• Ensure that you’re dealing with a legitimate salesperson. Look at his or her ID badge and get a business card.

• Don’t divulge personal information such as your gas or electric bill details unless you’re sure you want to sign the contract.

• Read the contract carefully before signing. Be particular about the price comparison and disclosure statement discussed by the salesperson.

• Once you’ve entered into the contract, you’re usually given a leeway of 10 days to cancel it. Read the contract in detail, and research about important questions. Clarify with the retailer because consumers are generally given a 30 days grace period to cancel the contract after paying their first bill.

Discuss in details with electricity retailers your concerns about energy usage and charges. These mediators are designated to the legwork because energy suppliers do not go door to door.

Choosing An Internet Service Provider- Your Best Broadband Options

It’s exasperating when your internet ticks you off again and again. You’re not obliged to live with it, actually, because you can switch internet providers. How do you shop for the best internet provider, and if you’re a newbie in the cyberworld, what’s the difference between broadband, cable, satellite and fiber optics?

Don’t call the internet “just the internet” because 82.3% of Australians use it for an average of 19 hours per day. Basically, your internet service provider can make an enormous difference in your mood and important activities. There is a great number of internet service providers Australia. Here is a guideline on how to find the best internet service provider and comparing your options.

What are the different types of internet services?

Broadband is a broad term, precisely, because it covers all the categories of “always on” internet connections- DSL, cable, satellite, and fiber- optics or FiOS. Broadband internet connections are high speed and keep you instantly connected to the net. The other choice conversely is dial- up. It still does exist and there are people who nonetheless pay up for it. Get a dial- up connection only if it is your only choice. Otherwise, it has to be broadband.

Different Types Of Broadband Connections:

DSL (Digital Subscriber Line)- uses regular phone lines to operate, delivering download speeds of 25 megabits per second. Later this year, 100 Mbps or more are expected. A DSL connection is less expensive, and you can choose from several DSL internet providers. You get stable and consistent internet speed because you get a dedicated line. However, speed is slow and unreliable if you are far from the provider’s central office, and DSL is generally not as fast as other broadband connections.

Cable broadband- provided by your cable television provider. Connection runs through coaxical cable TV wires with download speeds of 3Mbps- 100Mbps. Cable is faster than DSL and satellite connections, and is more available than fiber optic broadband. The downside is that you get slower connection if more people are using cable broadband in your neighborhood.

Satellite- a satellite dish is installed at your home, to which a satellite beams the internet feed. You get 15 Mbps down and 3Mbps up in speed from a satellite internet connection. Apparently, the speed is slower than other broadband connections, plus it is more expensive.

Fiber optic or FiOS- the latest technology in internet connectivity. A network of optical network using light operates the internet connection. Fiber optics lines are as thin as human hair, made of pure glass material. Speed is 300 Mbps down and 65 Mbps up. You get the highest speed with a FiOs connection, but it is available in limited areas.

Consider these factors when choosing an ISP:

Availability

Download and upload speed

Cost and contract

Terms of service

Add- ons and special features

Reliability

Customer support

There are many considerations, but these tips can guide you through with a smart decision. Call a specialist website to help you choose the best internet service providers Australia.