Australians are feeling the pressure of rising cost-of-living expenses, with energy bills ranking among the top financial stressors. New research highlights a simple yet effective solution: switching electricity and gas plans. By making this change, households could save hundreds of dollars annually.
Potential Savings on Energy Bills
According to research by Mozo, switching to the cheapest available plans could save households an average of $419 on electricity and $227 on gas, totaling nearly $650 per year. These figures underline the financial benefits of being proactive in managing energy costs.
Rachel Wastell, a Mozo money expert, emphasized the importance of taking control of energy costs, especially as government rebates like the $300 Energy Bill Relief Fund are set to end later this year. “Rebates are nice, but they’re not the long-term fix. Switching retailers is the ultimate power play for securing real, sustainable savings,” she said.
Loyalty Tax: A Hidden Cost
The Australian Competition and Consumer Commission (ACCC) has identified a “loyalty tax” penalizing customers who stick with the same provider. Households that haven’t switched electricity plans in over a year are paying $238 more annually, while those on plans older than two years could pay $317 extra on average.
ACCC Commissioner Anna Brakey urged consumers to reconsider their energy plans regularly. “If you haven’t changed electricity plans in the past 12 months, chances are you’re paying more than you need to,” she said.
Retailers often offer the best deals to new customers, making it crucial to shop around for more competitive plans. In markets with competitive energy retailing, families could save between $500 and $600 annually by switching providers.
Steps to Find Cheaper Energy Plans
For those looking to reduce their energy costs, experts suggest:
- Compare Rates: Use government comparison sites like Energy Made Easy or Victorian Energy Compare to find the best offers.
- Negotiate with Your Provider: Call your current retailer and request a better deal. Providers are legally required to disclose cheaper plans if available.
- Check Your Bill: Every three to four months, energy companies must notify customers if a cheaper plan is available.
Energy bills remain a significant burden for many Australians. About 44% of Aussies rank energy costs among their top financial concerns, with 15% naming it their number one worry. For a low-usage household, the average annual electricity bill is $1,242, while medium-usage households pay $2,317.
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