What are pay on time discounts?

Everybody loves a good discount, especially Australians. Whether it is two for one at the bar, or a knockdown on price on the grocery shop, discounts mean that consumers can save money, so it is even better when applied to the energy market. In this article, we are going to run through what a pay on time discount is, how you can find one and what the benefits are.

So, what is a pay on time discount?

Essentially, a pay on time discount means that if you pay your bill off before the due date, you can get a small discount on the next bill. It rewards you for being on time (which is great if you are organised) and can make a difference if you continue to pay on time throughout the year. This can vary depending on your provider as some plans will only offer this discount for 6 months to 1 year, but if you stick to it you will save incrementally. Pay on time discounts were increasingly popular before there were changes in the market that meant that a lot of companies had to scrap pay on time discounts due to regulatory changes. There are still companies out there that offer this, though; it is just a case of finding them.

Pay on time discounts work on a percentage basis, offering you a certain amount off your power bill for paying on time. Discounts can really vary, anything from 5% upwards of 10% can be seen. In rare cases, there are some that exceed 20%, but you will have to search for these in the small print or by using a price comparison website!

So, how do I find a pay on time discount?

It is easily done by using a price comparison website and for shopping around online. Price comparison websites give you an overview of each provider as well as the extra benefits they have for customers. The best way to find pay on time discounts is to state it in your search, so you can filter out those that do not offer it. The number of providers that have this add on will vary depending on where you live in Australia, so make sure to have all your details to hand such as your address to give you the most accurate search.

What are the benefits?

The main benefit of a pay on time discount is the sheer savings that you can make! If you are brilliant at keeping on top of payments and strict with your finances, you would benefit from this type of add on from an energy provider. If you are someone who lives in shared housing or has to rely on other individuals incomes to pay for bills, then it may be worth consolidating them first before choosing this time of plan, as if you do not intend to pay on time then there is not much point switching, and you do not want to get caught with hefty late fees.

 

Author: Claire Stapley
Claire Stapley is ElectricityComparison.com.au's Energy Editor, based in Melbourne Australia. Claire is a founding member of ElectricityComparison.com.au News and Energy Team.