Powerswitch has 3000 power plans programmed into its search and 17,000 lines of pricing data.
Even then the retailers manage to fudge their offers making it nigh impossible to do a true comparison. Your existing bill may not even contain your plan name, which makes it hard to do an exact comparison, says Paul Fuge, Powerswitch manager. That's what happened to me.
There are signs to look for. "If your retailer does not appear in the top four results [on Powerswitch] that's a really good indicator that you're paying too much," says Fuge.
The algorithm can't necessarily delve into the true cost of your "free" TV if you choose that offer because the value of such items is individual. If you didn't plan to upgrade and/or wouldn't buy full price, then at best the value has to include the residual value of the life of your old appliance, that you may have wasted.
Auckland University's professor of experimental economics Ananish Chaudhuri points out that when we take a freebie we feel the need to reciprocate. In other words, we owe the company something. Once we've switched, we stick there.
"This is why I almost never try free samples at supermarkets and other places. I know that if I do so, I will end up engaging in conversation with the person and thank him/her. Following that, I would feel a strong sense of obligation to buy the product."
Often the lesser known power companies that offer transparent-ish lower rates and no inducements to join are the best value. Canstar general manager Jose George says assess your needs and compare them to the offers. "With so many offers and incentives in the market, spending a bit of time on research could well deliver benefits for your household."
Beware that signing up for juicy-looking deals as a new or repeat customer usually ties you into a 12-24 month contract. That ensures that you pay back your free TV or cash discount over the period of the contract, says Fuge. It could also mean missing out on better deals during that time.
Also, be careful. If you switch again in the contract period you'll need to pay expensive disconnection penalties.
Fuge warns of bundled deals with power, gas, internet and possibly mobile phone together. They may not be the good deal they appear because one aspect of the bill is inflated to cover the discounts elsewhere.
The reason retailers are keen to bundle is that it's very "sticky" says Fuge. "It's exponentially harder to change providers once you've bundled up." It's unfortunate, he says, because there are some very good individual deals around that would save consumers money.
Powerswitch is in the middle of research unpicking bills from bundled customers to see if they're saving money. Most aren't even if they think they're getting a deal. They'd be better off signing up for individual accounts for those services.
Finally, check your bill every year. If you can't be bothered switching, ask your existing retailer for the same deal offered to new customers. And stand your ground until you get it.
