Cut Your Power Bill By Threatening To Switch To A Specific Rival Deal

Cut Your Power Bill By Threatening To Switch To A Specific Rival Deal
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It’s well-known that service providers (like phone and electricity) would rather retain a customer than sign up a new one, and you can use that fact to get a better deal by calling them and threatening to switch providers. You’ll get much better results if you can identify a specific deal and say you’re about to sign up, rather than just generally threatening to switch.Picture from Gizmodo’s Power Shooting Challenge

Blogger and tech journalist Neerav Bhatt details how he got a better deal from his power company by calling them and saying he was about to sign with an alternative provider, offering specific details of what was on offer. Using Google, you can easily identify deals on offer in your state. As well as looking at rivals, it’s also worth checking what your current provider offers: if they have a new customer special, you can mention that as well:

I made it clear I was disappointed by that my electricity company was offering new customers a deal of 7% off usage fees and a once off $150 credit on their first electricity bill and not making much of an effort to keep me, an existing good long term customer who has always paid my bills on time. Suddenly the customer service representative “discovered” an additional deal they could make: 7% off usage fees if I signed a 2 year contract and $100 credit off my next electricity bill.

Hit the link for the full details of Neerav’s experience, and share any useful negotiating tips of your own in the comments.

Cut Your Australian Electricity Bill By Threatening To Switch Providers [Rambling Thoughts]


  • I tried calling in once to get a better plan. I didn’t have a specific plan to threaten to switch to and the salesman called my bluff. I ended up getting a worse plan than I originally was on!

  • Of course, this advice is only useful for those areas that have more than one provider… Unlike us here in the West.

    I just love when Today Tonight (a WA locally produced show) shows stories from the East like this one that have absolutely no use for people in the West.

  • Origin called me after Lumo send them papers for me to switch… so they offered me same deal as Lumo (10% off)… I called lumo saying that I wanna stay with origin but they said that I have to pay $75 fee… long story short Origin was not prepared to cover that fee so I switched…
    the only problem that i have with all that… Lumo actually didn’t send any paper work to origin for 10 days … cool down period is 7! Im pretty sure its not against the law but its freaking dodge

    • Yeah I have to agree. Power companies are reluctant to offer deals of their own volition, even if you threaten to leave. Generally once the paperwork goes through they’ll try to match the new deal, but really better it. I’ve even had one threaten me by saying I was still under contract with them (I wasn’t) to prevent me from leaving. Dirty tactics.

  • I did this a few weeks back with Origin Energy. I didn’t have a specific plan for comparison, so I just asked for a reduction. They knocked 10% off our Electricity and Gas accounts on the spot…
    That’s $150 or more a year, not bad.

  • “It’s well-known that service providers (like phone and electricity) would rather retain a customer than sign up a new one”

    Apart from Vodafone…

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