With the cost of living continuing to rise and energy bills taking a bigger bite out of our budgets, it’s more important than ever to ensure we’re not paying more than we need to.
But what if we told you that a sneaky tactic used by some energy retailers could be quietly costing you—and thousands of other Australians—hundreds of dollars a year without you even realising it?
That’s precisely what consumer advocacy group CHOICE uncovered in a recent investigation, and they’re calling on the Australian Competition and Consumer Commission (ACCC) to step in and stop it.
If you’ve ever tried to compare energy plans, you’ll know it can be a bit of a headache. But CHOICE has found that some energy retailers are making things even trickier by reusing identical names for different plans, sometimes at very different prices.
Here’s how it works: On your energy bill, there’s a section that says, ‘Could you save money on another plan?’
This is supposed to help you find a better deal. But CHOICE found dozens of cases where customers were told they could save money by switching to a plan with the same name as the one they were already on.
Understandably, most people would assume this was a mistake or that they were already on the best deal, and wouldn’t bother switching.
However, these ‘identical’ plans often had different prices, and switching could have saved customers an average of $171 a year. Sometimes, the savings could have been as much as $588!
CHOICE collected nearly 400 energy bills from supporters earlier this year and found 64 examples of this confusing practice. If you do the maths, that’s potentially $65 million in lost savings for Australian households annually.
Ashley de Silva, CHOICE’s chief executive officer, explained: ‘The energy market is confusing enough without energy retailers using dodgy tactics that make it nearly impossible for consumers to know if they’re getting a good deal.’
‘At a time when we’re all looking for ways to save, energy companies are making it harder and harder to know what you’re paying and why.’
CHOICE believes this practice could be misleading or even deceptive, so it’s made its first-ever ‘super-complaint’ to the ACCC to investigate whether energy retailers are breaking the law.
Specifically, CHOICE is asking the ACCC to look into whether retailers are:
- Using identical names for plans with different prices
- Using plan names and descriptions that suggest ‘savings’ on poor-value plans
- Telling customers to switch to plans that aren’t available or that they’re not eligible for
The ACCC is required to respond to CHOICE’s complaint publicly within 90 days.
How can you protect yourself and save money?
While we wait for the ACCC to act, there are a few things you can do right now to make sure you’re not being caught out by this sneaky trick:
- Don’t trust plan names alone: Just because a plan has the same name doesn’t mean it’s the same price or offers the same value. Always check the details—especially the rates and any discounts or conditions.
- Compare your options regularly: Energy retailers can change prices and offers at any time. Use independent comparison websites (like Energy Made Easy or Victorian Energy Compare) to see if you could get a better deal.
- Read the fine print: Look for any extra fees, contract lengths, or conditions that could affect your bill.
- Contact your provider: If you see a message on your bill suggesting you could save by switching to a plan with the same name, call your energy retailer and ask for clarification. Don’t be afraid to ask for a better deal!
- Consider switching providers: Loyalty doesn’t always pay for energy. If your current provider can’t offer you a better deal, it might be time to shop around.
Have you ever noticed confusing plan names or offers on your energy bill? Have you saved money by switching plans or providers? Share your experiences and tips in the comments below.
Also read: Australians score a $100 energy bill rebate—here’s how to claim your share
