In short
Only if you would receive them every single time, and even then only if the plan is still cheaper than the best unconditional one once you have earned them. A pay-on-time or direct-debit discount is forfeited on any bill that misses the condition, so a plan that looks cheapest with the discount can be among the dearest without it. Judge a plan on what it costs when the discount is missed, then treat the discount as a bonus.
How a conditional discount works
The plan states a discount, usually a percentage off usage or off the whole bill, that applies only if a condition is met on that bill: paid by the due date, paid by direct debit, billed by email, or a combination. Miss it once and that bill is charged at the full rate; the discount comes back on the next bill you meet it on. The rates the discount comes off are the retailer's to set, and a plan with a large discount often has larger rates to take it from.
What we do with them
We rank every plan on its unconditional annual cost, the figure you would pay if you never met a single condition, and show the conditional figure beside it. A plan that punishes one late payment should be judged on that, and a household comparing two plans should see both numbers rather than the flattering one. How we compare plans sets this out in full.
When a conditional plan is still right
- You pay by direct debit and always will. A direct-debit condition is then met by default, and the discount is real.
- The plan beats the best unconditional plan even without the discount. Then the discount is pure upside.
- The discount is unconditional after all. Some plans state a guaranteed discount that applies regardless; the regulator's plan data marks it as such and we treat it as part of the price.
When it is not
- The plan is only cheapest with the discount. One missed bill undoes a year of the difference.
- Bills arrive by post or are paid by cheque. The condition will be missed sooner or later.
- The discount is off usage only and the supply charge is high. For a small home the discount is worth less than it looks.
Quick answers
What happens if I miss a pay-on-time discount once?
That bill is charged at the plan's full rates without the discount. The discount applies again on the next bill you pay on time; it is not lost for the year, but the difference on one bill can be a significant share of it, which is why plans should be compared on the price without it.
What is a guaranteed discount on an electricity plan?
A discount that applies whether or not you meet any condition. The regulator's plan data labels it as guaranteed, as opposed to a conditional discount for paying on time or by direct debit. We count a guaranteed discount in the plan's unconditional annual cost and show conditional ones separately.
Sources
Official pages this answer relies on. If one of them changes, tell us and we will update the page.
- Energy Product Reference Data · Australian Energy Regulator
- Energy Made Easy · Australian Energy Regulator
- A guide to comparator websites for website operators and suppliers (2015) · Australian Competition and Consumer Commission