Record low energy prices a boon for savvy customers

Power savings

Australians are being urged to review their energy providers, with wholesale energy prices at their lowest in three years.

Wholesale prices in some states are less than half the average seen in 2023, and retailers are offering huge deals as they compete for customers in a rare buyers’ market.

Along with energy rebates available to seniors, the savings could represent hundreds over the coming year.

Analysis by personal finance marketplace and advice company Compare Club reveals that energy providers are offering discounts of up to 20 per cent on bills, with some retailers allowing Victorian customers to lock in that discount for 12 months.

Best for the year

It’s likely that the savings now on offer will be some of the best for the year as energy wholesale prices go up in line with demand and discounts disappear.

During extreme weather, such as the heatwaves already seen this summer, demand for energy will increase as more people stay indoors to escape the heat – watching TV, streaming, gaming and using the internet as well as running air conditioning or other cooling devices.

Victorian customers stand to make the biggest savings as wholesale prices are currently extremely low at less than $38 per megawatt hour. This is in stark contrast to 2023, when spot pricing averaged more than $100 MWh.

The table below represents Compare Club’s best offer in each state as of 11 January 2024. Discounts will vary based on distribution zone and meter type.

“This is the best market for electricity deals that we’ve seen in three years,” said Compare Club head of research Kate Browne.

“Our recent research showed that the rising cost of energy in the household bill is now the number one cost causing the most stress to Aussies. At the same time we know a huge number of Australians are paying far more for their energy than they need to because [they] aren’t taking advantage of the discounts and deals that are on offer in the market.

“If this is you, then there hasn’t been a better time in three years to look at changing energy providers, as prices are at an all time low, but these offers may not be available for very long,” she said.

Act now

“As a rule of thumb if you haven’t reviewed your energy deal or provider in 12 months you should act now.

“Even if it’s been less than 12 months it’s still worth checking as competition for customers is red hot right now and you may still save money.

“Switching energy providers is one of the easiest ways to save money. It’s as simple as making a phone call to save up to $500 a year depending on where you live.

“With no paperwork or changes at home, the only difference customers will notice is the savings on their bill.”

Will you be changing your energy provider considering these figures? Why or why not? Why not share your opinion in the comments section below?

Also read: Bill stress index is out and it’s not a pretty picture

Disclaimer: YourLifeChoices is owned by Compare Club.

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