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Energy plan providers like AGL and Origin offer sign-up credits to customers who make the switch, but are these bill credits worth it?
There’s no denying the allure of sign-up bonuses and incentives. But do they really save money in the long run? Let’s explore two examples on offer in the market and how they stack up against other energy plans.
Origin sign-up bill credits
Origin is currently offering the following sign-up bill credits:
- Origin Go Variable plan - $100 for new customers in VIC, SA, ACT and NSW.
- Origin Go Variable plan - $150 for new customers in QLD.
Available for new and moving customers only, on electricity and natural gas plans active until 31/12/25. VIC, SA, ACT and NSW customers must be signed up by 30/11/25.
It’s only available if you haven’t received a credit for the same fuel in the past 12 months at this address.
At face value, $100-$150 off your first bill might seem generous, but it is not a guarantee of actual savings. Whether an energy plan’s bill credit makes it worth switching to will depend on its energy rates.
An electricity bill is made up of two main charges: usage rates and supply rates. A supply rate is a fixed daily cost for being connected to the electricity grid and usage rates are either a variable or fixed cost set by the provider for every kilowatt hour (kWh) of electricity consumed at your property.
For the Origin Go Variable plan at my property, the usage rate is offered on a time of use tariff. This means that the rates change depending on the time of day, varying between peak, off-peak and shoulder times:
- Peak - 44.86 cents per kWh (c/kWh)
- Off-peak - 27.23c/kWh
- Shoulder - 32.34c/kWh
I will also be charged a daily supply charge, which I’ll pay for access to the electricity grid.
- Daily supply charge: 141.17c/kWh
This information is useful if you know your energy habits, giving you the ability to calculate more specifically what you could pay over the billing period.
In other words, if I can capitalise on the shoulder period times (this differs but is usually between 7am-3:59pm and 8pm-9:59pm) by using my energy-hungry appliances during these hours, this plan could be worth switching to.
AGL sign-up bill credits
Just like Origin, new AGL customers can also receive a sign-up bill credit:
- AGL Smart Saver - offers a $150 sign-up credit in QLD or $100 in NSW, VIC and SA on all advertised AGL electricity and gas plans, which will be applied to the first bill after 90 days.
Again, using my address as an example, AGL offers a single rate energy plan:
- Usage rate - 33.792c/kWh
- Supply rate - 131.714c/kWh
I will pay the same for energy no matter what time I use it, which means I don’t need to avoid using electricity at certain times to save money.
If we compare AGL’s single rate usage rate to Origin’s time of use usage rates, AGL’s is not much more expensive than Origin’s off-peak rate.
Are bill credit offers really a good deal?
I am a current AGL customer who missed the sign-up offer. When speaking with AGL, customer service suggested bundling my internet, mobile and gas for a different bill credit.
This immediately gave me ‘analysis paralysis’, trying to weigh up the pros of changing all of my utilities for a single benefit. As an energy writer, I know the importance of looking at the entirety of an energy plan, rather than just the enticing discounts and bonuses.
To see how these deals really stack up, I used Canstar’s energy comparison platform. Even with the sign-up credit, AGL’s Smart Saver market offer comes out as ninth on the list of cheapest plans in my area. Using the same parameters to compare Origin’s bill credit offer, the estimated annual cost is $1 less than AGL’s, which also includes the sign-up credit.
Although AGL and Origin's offers give me a near-identical annual estimated cost, this doesn't mean either deal is the right choice. Jumping on a plan just because of a sign-up credit could actually leave me worse off than shopping around and possibly choosing a different provider with better rates.
As an example, OVO Energy is offering its The One Plan with an estimated annual cost of $1,823, compared to the $2,036 that I’m currently estimated to pay. OVO Energy doesn’t offer any bill credits, so this estimated difference is based on usage and supply rates alone.
The lesson here is that bill credits can be distractions from higher usage and supply rates, and might not help save money in the long run. Sign-up bonuses are only worthwhile if you end up paying less than other similar energy plans.
Keep in mind that estimated pricing is calculated from an annual usage estimate, which differs from state to state and distributor to distributor.
Available energy plans, energy rates and how much you can save will depend on your personal circumstances and individual energy usage habits, but remember that sign-up bonuses are only useful if they can actually save you money.
How do I compare energy plan rates?
You can begin comparing energy plan rates by taking the Canstar comparison journey. There you can search specific electricity, gas and/or solar plans based on your postcode, with options for residential or business plans as well as energy supply and usage rates and estimates for the month and year.
You will also find the Basic Plan Information prompt that will provide further information on your plan via the Australian Government’s Energy Made Easy website.
For more information on energy in your state, check out our guides:
