Here’s a household bill question that many Aussies may struggle to answer.
Given the cost of electricity is dropping in Australia and there’s a lot of cheap deals to be had on the market, why are we worried about our energy bills going up^?
The answer is that anybody who took out a super-cheap deal over a year ago could now be on a much more expensive plan – and overpaying for their electricity by hundreds of dollars.
Here’s why you’re not on the best deal
Energy providers often lure you in with introductory offers and discounts before moving you to a more expensive default market offer (or VMO in Victoria) after your contracted term.
But the Australian Competition and Consumer Commission (ACCC) released a report last year showing that energy prices are dropping.
The consumer watchdog even went so far as stating that shopping around to compare rates can save you up to $219 per year*.
So if you haven’t compared energy providers in the last 18 months, you could very well be overpaying.
Why the energy regulator is urging us to get a cheaper deal
In a perfect world, loyalty to your energy company should be rewarded with the best rates your provider can muster, but unfortunately that’s not always the case.
Even the chair of the Australian Energy Regulator, Clare Savage, has called on households to check if they’re paying too much.
“Most retailers have cheaper energy deals on offer,” she says, “So shopping around remains the best way to get a better price**.”
Many energy providers do offer discounts when you pay on time via direct debit, but you’ll still need to work out if this is a better price than you can get if you switch providers.
It’s also a time consuming process to compare like-for-like, especially when you’ve got other priorities such as driving children to sports practice, and work deadlines.
The good news is that the experts at Electricity and Gas Comparison could find you a cheaper deal in minutes — you can switch online and we’ll even take care of the paperwork.
The bottom line: it’s easy to let your energy provider roll you onto a more expensive plan, but it’s just as easy to find a cheaper deal. Click here to get started.
This article is opinion only and should not be taken as financial advice. Check with a financial professional before making any decisions.
^Compare Club, Bill Shock Index, March 2021
*ACCC, Inquiry into the national energy market, Sept 2020.
**Australian Energy Regulator, Electricity customers on a standing offer will share in over $65m of bill savings, 27 April 2021