The Australian Competition and Consumer Commission (ACCC) is urging Australians to take a closer look at their electricity plans, as many households are missing out on savings by staying on outdated or expensive deals.
According to the ACCC’s latest electricity inquiry report, over 80% of households in the National Electricity Market could save money by switching to a cheaper plan or simply contacting their current provider to ask for a better deal. Despite electricity prices dropping between August 2023 and August 2024, many people are still paying more than they need to because they’re on older plans or haven’t explored their options.
“If you haven’t changed electricity plans in the past 12 months, chances are you’re paying too much for your electricity,” said ACCC Commissioner Anna Brakey.
The report revealed that households on older plans are spending, on average, $238 more per year than those on newer ones. Brakey encourages Australians to take a moment over the holiday period to check their options on comparison websites like Energy Made Easy or Victoria Energy Compare. Alternatively, a quick call to your energy provider could uncover a better deal.
“We know that customers who haven’t reviewed their plans in a while are probably overpaying,” Brakey added.
Your electricity bill itself might also hold clues to savings. Energy companies are required to include a message on bills every three to four months if a cheaper plan is available. “If you see this message, it’s a clear sign you’re paying more than you should be,” Brakey explained.
Pricing in the retail electricity market has become more complex in recent years, with more consumers on plans featuring time-of-use rates or demand tariffs. These newer options can be harder to navigate, but they often offer opportunities to save. The report found that customers on time-of-use plans typically have lower annual electricity costs compared to flat-rate plans.
However, those on demand tariffs are paying more on average, with over half of them on plans above the government’s safety net price.
“The growing complexity of pricing, particularly with the rollout of smart meters, is a challenge for consumers trying to cut their energy costs,” Brakey noted.
While it’s promising that annual electricity prices have dropped overall and more people are on plans below the government safety net price, many households still need to take action to benefit from these improvements. If you’ve been on the same plan for a while, now is the perfect time to make sure you’re not overpaying for your electricity.
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