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At SwitchandSave we try to reduce market offers down to 1 or 2 numbers (supply charge and usage charge) so we can effectively compare the electricity company offers.

Comparing Electricity costs should be simple.  In fact it is simple, it involves 2 numbers, the supply charge and the usage charge (usually in kW).  1kW of power is the same wherever you buy if from.  So the electricity companies try and make themselves look different from each other by making the price look different.  This practise is also called price differentiation, which tends to have the effect of consumer confusion.

On commodity items like power, price differentiation is a layer of administration that is tedious for both the consumer and sometimes the power company themselves.  The argument is that more ‘choice’ is better for the consumer and yields higher margins for the power company.

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