Pay on time discount electricity plans, and what they really cost
A pay on time discount only comes off your bill when you pay by the due date. Miss it once and you pay the full rate. Here is how guaranteed and conditional discounts differ, and how we count them.
A big percentage off can still cost you more
A discount is taken off that plan's own rates. If the rates are high to begin with, a large percentage off can still leave you paying more than a plan with lower rates and no discount at all.
The percentage tells you nothing about the rates underneath it. The supply charge is the fixed daily amount you pay to be connected. The usage rate is the price for each kWh you use.
Check what the discount comes off. If it applies to usage charges only, the daily supply charge stays at full price on every bill.
Then there is the condition. A pay on time discount disappears on any bill you pay late, and you are left on the higher rates the discount was covering.
How we count a pay on time discount in your yearly cost
Our comparison leaves conditional discounts out of the yearly cost unless you tick that you always meet them. Each plan also shows its yearly cost if every condition is met.
The default: no conditional discounts
Every plan's yearly cost starts without pay on time or direct debit discounts. It includes GST, supply charges and usage at your own figures, so you see what you pay if a condition slips.
Tick only if you always meet it
If you pay every bill on time, every time, tick the box and we count the conditional discount in the yearly cost. If you are not sure, leave it unticked.
The best case, shown beside it
Each plan also shows what it would cost a year if every condition is met. The gap between the two figures is what a missed payment puts at stake.
Ordered by cost, never by payment
Results are ordered by estimated cost at your usage. Payments from providers never change the order, and any sponsored placement is labelled.
How to check an electricity discount before you switch
Five checks, in this order, using your latest bill and the new plan's own fact sheet.
Find the discount on your bill
Look for the discount line and the words printed around it. Our guide to reading your electricity bill shows where it usually sits.
Read the condition word for word
Pay on time means paying by the due date on the bill. Direct debit means the payment comes out of your account automatically. Note whether the discount needs one condition or more than one.
Be honest about your track record
A failed direct debit, a bill that lands while you are away, or a tight week can each cost you the discount on that bill. If it has happened before, plan for it happening again.
Compare the cost without the discount
Start with each plan's yearly cost with the conditional discount taken out. That is what you pay on the months things go wrong.
Then look at the best case
Now compare the yearly cost if every condition is met. If a plan only wins when you never slip, a plan with lower rates may be the safer choice. Our switching guide covers the next steps.
A plan never looks cheaper because of a discount you might miss.
Questions about pay on time and direct debit discounts
Frequently Asked Questions
- Is a pay on time discount the same as a guaranteed discount?
- No. A guaranteed discount comes off every bill whatever you do. A pay on time discount is a conditional discount: it only comes off a bill you pay by the due date. Pay late and that bill is charged at the plan's full rates.
- Is a conditional discount ever worth taking?
- It can be, if you reliably meet the condition and the plan is still good value once the discount is taken away. Compare both yearly figures. If the plan only beats the others when you never miss a payment, think about how often that has happened to you.
- What changes when I tick that I always meet the conditions?
- We add the conditional discounts into each plan's yearly cost and order the results with them included. Untick it and the yearly cost goes back to the figure without them. The best-case figure stays on each plan either way.
- Do providers pay you to rank higher?
- No. We may be paid when you choose some plans, and any sponsored placement is labelled, but payment never changes the order. See How we make money at /tools/how-we-make-money/.
- Do I need an account to compare?
- No. Enter your postcode and usage, or figures from a recent bill, and see the published plans for your area by yearly cost. An account is only for saving comparisons, recording bills and alerts.
- Why can't I compare electricity in WA or the NT?
- Retailers there do not publish their plans through the national feed we use, so we can't show a complete, current list. The household, electricity, solar and battery calculators still work.
Price every plan without the discounts you might miss.
Got a question about a discount on your own bill? Email the HouseholdBills team and tell us which plan you are looking at.
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