You pay your bills on time, stay loyal to your provider, and expect that loyalty to mean something — right? Well, not exactly. Many Australians are now discovering that staying loyal to their energy, mobile, and internet companies is actually costing them money. A lot of money, in fact.
The Cost of Standing Still
According to a recent Finder study, the average Australian household paid an extra $569 last year in what experts are calling a “loyalty tax.” It’s not a real tax, of course — but the effect is much the same. Staying on the same plan for too long means you’re likely being charged more than new customers. Across the country, that small difference has added up to a staggering $6.7 billion in extra payments.
The breakdown is eye-opening: $2.9 billion came from energy bills, $2.8 billion from mobile data, and almost $1 billion from NBN plans. Essentially, companies are rewarding newcomers with better deals while quietly charging long-time customers more for the same service.
Utilities expert Mariam Gabaji from Finder says this quiet penalty thrives on complacency. “Many of us set bills and forget them, but that inertia is exactly what providers count on,” she said to Yahoo Finance. “If you haven’t switched providers — be it energy, broadband or mobile — in the last 12 months, chances are you’re paying too much.”
Paying More for Loyalty
The difference might not sound huge month to month, but it adds up fast. In New South Wales, for example, the average household spends about $505 per quarter on electricity. But the cheapest available plan is closer to $459, meaning that some families are handing over nearly $200 more per year for the same service.
And it’s not just power bills. The Australian Competition and Consumer Commission (ACCC) found that households who’ve been with the same energy provider for more than three years are paying an average of $221 more per year than customers who recently switched.
ACCC Commissioner Anna Brakey said the message is simple: don’t stay put out of habit. “Loyalty penalties are alive and well in the retail electricity market,” she said. “The best thing people can do to save money is to switch plans — either moving to a cheaper plan with their existing retailer or changing retailers altogether.”
Calls for Fairer Prices
The issue has caught the attention of regulators, too. The Australian Energy Market Commission (AEMC) has called on energy providers to charge all customers on the same plan the same price, regardless of how long they’ve been with the company. That would prevent providers from quietly penalising long-term customers.
Until that happens, experts say the best thing Australians can do is take a few minutes to compare their plans. “Most people don’t realise just how much they’re missing out on,” Gabaji said. “Taking the time to shop around can put hundreds of dollars back in your pocket every year.”
A Quiet Wake-Up Call
It’s ironic, really — the thing we value in relationships, loyalty, turns out to be a liability when it comes to bills. Maybe it’s time to rethink who really deserves that loyalty. A quick check once a year could mean more money for things that actually matter — and less lining the pockets of companies that take long-term customers for granted.
