Australian households could save up to $613 by switching energy providers before 1 July 2023

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Households across Australia are facing increasing financial pressure, with energy bills set to rise by up to 24 per cent. According to leading personal finance marketplace Compare Club, households in regional New South Wales (NSW) are expected to be the hardest hit. However, switching energy plans could help regional NSW households save up to $613 annually.

The Australian Energy Regulator (AER) recently announced the draft energy Default Market Offer (DMO), which sets the maximum amount energy retailers can charge for standing offers in certain parts of Australia. The AER revealed that residential customers on standard retail plans could face price increases of around 19.5 per cent to 23.7 per cent.

Despite this increase, Compare Club suggests that households could save up to $613 by switching energy providers before 1 July, as some retailers have already increased their prices ahead of the DMO announcement. Furthermore, Compare Club analysed current market pricing and found that some plans are up to 17 per cent lower than today’s DMO, meaning customers who switch today could already save up to $320.

Area Annual increase from 1 July Current annual savings for a DMO household that switches today
Sydney (Ausgrid) $335 $222
Western Sydney & Blue Mountains (Endeavour)$383 $320
Regional NSW (Essential) $463 $279*
SE QLD $321 $238

While energy bills will undoubtedly rise when the DMO increases, it also means that there could be more deals and offers from the big retailers, allowing for significant savings for those customers who are willing to shop around.

Paul Coughran, general manager of utilities at Compare Club, encourages consumers to review their energy plan and compare it with other available plans to ensure that they are getting the best deal possible. He notes that this is an almost unprecedented price hike for households across New South Wales, South East Queensland, and South Australia, putting further stress on family finances.

It’s regional and rural NSW that will be hardest hit, with the average household being slugged with annual increases of up to $463. In comparison, Sydney’s energy prices are set to increase by $335, Brisbane, and Gold Coast bills by $321, and Adelaide by $401 from 1 July.

However, there is some good news. Some retailers are offering substantial discounts for new customers. Compare Club’s analysis of the energy market suggests that customers on the most expensive energy plan in regional NSW could save $613 by switching today, while Sydneysiders could save up to $222.

To learn more about the upcoming changes to the Energy Default Market Offer and how Compare Club can help consumers save money on their energy bills, visit www.compareclub.com.au/energy.

Compare Club is committed to helping Australian consumers save money on their energy bills. Staying informed and taking advantage of the new default market offer rates can make a real difference to their household budgets. Compare Club is one of Australia’s fastest-growing personal finance marketplaces, helping Australians save money by navigating complicated and important financial decisions. Its panel of experts offers bespoke advice to over 3.6 million members, making one million product inquiries per year on key financial decisions, including health insurance, electricity and gas bills, personal, car and home loans. Compare Club is locally owned and employs 200 passionate staff across Sydney, Melbourne, Brisbane, and another 50 staff in Indonesia and the Philippines.

REFERENCES 

*$613 savings figure is calculated by customers in the Essential energy network on the most expensive plan ($334 above today’s DMO) moving to the cheapest available plan ($279 below today’s DMO) through Compare Club.

Written by Partner Content

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