Am I Supposed to Pay The New Connection Fee for Electricity?

Freddies on 19/09/2023 - 19:53
Last edited 21/09/2023 - 18:00 by 2 other users

I bought an apartment and the vendor already had electricity connected to a provider. I called the same electricity provider and was told I still needed to pay the new connection fee, even though it is technically an "old" address.

Vendor said the meter is in the service room on the ground floor, but the provider support said they still needed to send a technician on site and check the readings on the meter and thus a new connection cost is a must.

Is this normal or I'm just over thinking?

Another question is, under the same home address, with a no-lock in contract with a provider, do I still need to pay both disconnection and reconnection fees if I decide to change a provider in the future? I couldn't find a clear explanation about this on the internet.

Thanks.

• 

  Hybroid on 19/09/2023 - 19:59

  A basic search says, yes, it's pretty normal to get a $30-50 connection fee from most providers:

  https://www.canstarblue.com.au/electricity/connection-discon…

  • 

    Freddies on 19/09/2023 - 20:01

    What I read is

    If you’re moving into a property with a pre-existing energy connection, then you may need to organise the disconnection of your old property and the reconnection of the new property. Around three business days before you move into a new property, call or visit the website of your preferred electricity or gas provider to enquire about whether the new property has a pre-existing connection. It will usually be the case that while the property has a physical connection to the power grid, it has been ‘disconnected’ in the sense that the power has been switched off.

    I didn't own any property previously though, it's just a ownership change from my vendor to me, which is not clearly discussed on this page. I'm living with the electricity probably still from my vendor's account, and there is no disconnection and won't be per the provider

    And if I still have to pay disconnection and new connection fee even though there is no real disconnection, does it mean changing providers will always result in both disconnection and reconnection costs under the same home address?

    • 

      Iwantthebestprice on 19/09/2023 - 21:38

      +1

      You pay for the connection read. That read will be used to close off the vendors energy account and your account will begin from that new read.

      As the new owner you are liable to pay for the connection as you must create an account when you move in, and not use someone else’s electricity.

      Pay the $30 or so and move on, otherwise you may find yourself without power if the vendor suddenly disconnects the supply.

• 

  brbgrcgukdhreuin on 19/09/2023 - 20:07

  In SA and Vic at least, I've always just filled out the new electricity account application as if I'm moving from another provider. They don't check the name on the account of the losing provider.

  • 

    Freddies on 19/09/2023 - 20:09

    Could you please elaborate a bit?

    Do you pay disconnection and reconnection fee every time whenever you change your electricity provider in SA and Vic?

    • 

      brbgrcgukdhreuin on 19/09/2023 - 20:12

      +1

      Not when you're changing providers. Changes at the next meter read, which is pretty much daily with smart meters in Vic; can't remember about SA.

      • 

        Freddies on 19/09/2023 - 20:48

        -1

        Changes at the next meter read

        Lol the current one told me that even though it is the current provider, getting me a new account = they send a guy to read my metre and this leads to a connection fee

• 

  brad1-8tsi on 19/09/2023 - 20:34

  find a provider with a cheap connection fee. I think AGL is $12.50. Or are you on an embedded network?

  I didn't pay a connection fee when I bought this place.

  • • 

      brad1-8tsi on 19/09/2023 - 20:39

      It was 2018, I can't even remember what provider I went with.

      Currently with AGL on a very good rate because they bought Amaysim (???) when I was with them.

      • 

        Freddies on 19/09/2023 - 20:43

        AGL's connection fee is cheaper for sure, but Origin currently has a family and friends deal, which makes including a 58.07 connection fee still cheaper than AGL's plan

        AGL's rate at my location:

        First 4000 KWH
        43.505 c/kWh
        Thereafter
        43.505 c/kWh
        Supply charge
        102.256 c/day

        Origin deal:

        Usage first 10.9589 kWh per day
        41.266 cents per kWh
        Remaining usage
        44.600 cents per kWh
        Daily Supply
        95.629 cents per day

        Plus, how did you negociate and avoid the connection fee?

        • 

          wetsandwich on 20/09/2023 - 00:41

          @Freddies: Where are you, because those rates are criminally insane! Paying over 30 cents is absurd.

        • 

          brad1-8tsi on 21/09/2023 - 12:34

          @Freddies:

          Plus, how did you negociate and avoid the connection fee?
          I don't know. 2018 is too long ago.

          AGL "Bright" in Sydney (AusGrid)

          Supply: 90c inc GST
          Peak: 47.6c inc
          Shoulder: 32.66c inc
          off-peak: 30.9c inc
          Solar FIT: 11c unlimited
          Mediocre rates but the no cap FIT is good

• 

  Ponsonby on 19/09/2023 - 21:16

  +1

  Amazed that over 40 cents per kWh is a competitive price in your area (Vic/SA?). Some persistent negotiation may get this down - we found that much better plans are available but are not advertised. We worked hard at this on the phone and got the KWh rate down to 19.36 cents and the daily fee to 77 cents

  • 

    Freddies on 19/09/2023 - 21:29

    I'm still new to this and don't know much about the offer you mentioned -

    Would you mind sharing more details about your provider? Not sure of just Vic/SA being doomed by inflation at the moment..

  • 

    wetsandwich on 20/09/2023 - 10:47

    I'm in VIC on an embedded network (no choice in provider) and just got a price decrease from 24c to 20c. Anything over 30 cents is criminal insanity!

• 

  Ponsonby on 19/09/2023 - 21:45

  ActewAGL - unadvertised PowerUp plan

  • 

    Freddies on 19/09/2023 - 21:50

    Sorry, ActewAGL doesn't supply energy to the area you've requested. Our sister company AGL may be able to help. Give them a call on 13 12 45 anytime for assistance.

    Service not available for me unfortunately

• 

  yoonibear on 19/09/2023 - 22:23

  +1

  Must've been how they worded it. A new connection fee (I work for a retailer) refers to a brand new connection eg brand new meter, new service line. They've must've meant a reading fee - essentially they send a meter reader out to read the meter so that they have a baseline of when you moved in/taken ownership of the supply.

  And no, everytime you change providers you don't disconnect/reconnect, this is only if you move. If you're changing providers, it'll be done via reads. They'll either organise a read (so that there's a closing read for the old retailer and a new opening read for the new retailer) to change retailers earlier or you can request for them to change at the NSRD (next scheduled read date - usually every 2-3 months depending on the fuel).

  • 

    Freddies on 19/09/2023 - 22:26

    A new connection fee (I work for a retailer) refers to a brand new connection eg brand new meter, new service line.

    Nothing is new here. They told me reading the metre will cost me A$58.07 which I found pretty weird

• 

  letmethefuqin on 19/09/2023 - 23:06

  I’m with nectr
  Supply 0.99
  Kw 0.2398 Fixed for 12 months

  I’ve gotta move house over the border and now they told me I have to sign up from scratch

  Did some looking around and everything is double the price

  Anyone know show good in NSW?
  Closest I can find is

  Glo bird
  Supply 1.4960
  Kw 0.3729

  • 

    hasher22 on 20/09/2023 - 00:59

    Welcome to NSW where everything is a rip

    I moved approx 3 weeks ago, Glo Bird seems to be one of the cheapest now in NSW.

    I am with GloBird and they were the cheapest for me……

    Either wait until OzBargain posts a deal and switch or try find a cheap supplier here https://www.energymadeeasy.gov.au/

    • 

      EBG on 20/09/2023 - 12:01

      +1

      You can also use the referral credit system on here too for $50 off

      • 

        hasher22 on 20/09/2023 - 12:09

        Oh yes yes, I did that with globird 3 weeks ago, forgot about the referral system. Thanks! :)

• 

  avoidfullprice on 20/09/2023 - 03:02

  under the same home address, with a no-lock in contract with a provider, do I still need to pay both disconnection and reconnection fees if I decide to change a provider in the future?

  From years of churning - no.

  I bought an apartment and the vendor already had electricity connected to a provider.

  I bought an off the plan unit, with a meter installed already, and still had to call my electricity retailer to create a new account with the distributor so the NMI is under my name.

  When i asked on the phone do i have to pay for new connection fee/disconnection fee they said normally yes but they waived it for me.

  The annoying thing was i was told by my vendor to do this months before i settle the place, so i got a bill for a place I didn’t live in. They reimbursed me the supply charges etc

  • 

    Freddies on 21/09/2023 - 17:57

    Lucky you but Origin said no, no and no to me

• 

  samyall on 20/09/2023 - 09:38

  The connection fee isnt a fee for physically connecting you to the grid, it's an administration fee for connecting your account that meter.

  • 

    Freddies on 20/09/2023 - 19:09

    I talked to an AGL support and they told me disconnecting from them and choosing another provider will occur:
    1. disconnection fee $58.07
    2. provider change fee: 0

• 

  jace88 on 16/04/2024 - 14:16

  Useful thread. I was trying to work out if I need to pay a $15 connection fee when changing providers from Energy australia to Origin for gas (but not moving home). Looks like I might…