Australians are being warned to look more closely at their electricity bills. Behind the confusing mix of tariffs and discounts, some energy retailers have been quietly shifting customers onto pricier plans — often without their clear consent. What seems like a small change in paperwork is costing households far more than they realise.
Electricity Plans Under Scrutiny
An investigation by The Age found that many energy retailers are automatically transferring customers to new plans once their old ones expire. It sounds harmless enough — until you notice the bill. These new plans often come with higher daily supply charges, smaller discounts, or variable rates that quickly add up.
Consumer advocates say this quiet form of “plan switching” has become a common tactic. While technically allowed under current rules, it undermines trust and transparency. Many customers never receive clear notice of the change or don’t understand what it means. By the time they realise, they’ve been paying more for months.
The Australian Energy Regulator (AER) has received multiple complaints and is reviewing whether retailers are complying with consumer protections. The regulator warns that vulnerable customers, including older Australians and renters, are most at risk because they rarely check or compare plans.
Hundreds of Millions Lost to Inertia
According to estimates from the Australian Energy Council (AEC), Australians lose hundreds of millions of dollars each year because of “inertia pricing” — when people stick with outdated or higher-cost plans instead of shopping around. Energy companies know that many customers rarely switch, and that loyalty, ironically, costs them more.
The system was meant to reward competition, but the reality has often been the opposite. The sheer complexity of energy offers — with discounts, conditional rates, and confusing terminology — makes it hard for people to know whether they’re getting a fair deal.
Pressure for Change
Consumer groups like Choice and Energy Consumers Australia are urging regulators to go further. They want rules requiring retailers to highlight cheaper plans directly on customer bills and to make any plan change strictly opt-in. Currently, companies can roll customers into new contracts automatically, as long as they’ve issued a notice.
Some states have already introduced “best offer” obligations, forcing retailers to show customers whether they could save by switching. But advocates say that’s not enough — the information is often buried in small print or digital notifications that many never open.
What You Can Do
Experts advise households to check their plan at least once a year, using official comparison tools rather than relying on retailer offers. Even a small adjustment — like moving to a fixed-rate plan or removing unnecessary add-ons — can lead to real savings.
With energy prices still high, every bit of vigilance helps. In a market built on complexity, paying attention may be the simplest way to stop your electricity bill from creeping higher month after month.
