It\u2019s the kind of expense that creeps up quietly. One month the bill seems normal, the next it\u2019s somehow higher \u2014 and many Australians don\u2019t even realise they\u2019re paying more than they should. A quick phone call could change that, but most people never make it.<\/p>\n
A new ACCC report has found that millions of Australian households are paying more for their electricity than necessary, simply because they haven\u2019t switched or reviewed their plan in years. The finding reveals a deep problem in the energy market \u2014 one that punishes loyalty instead of rewarding it.<\/p>\n
The Australian Competition and Consumer Commission says customers who stay on the same plan for too long often get charged rates that are far higher than those available to new sign-ups. These plans tend to roll over each year with quiet increases hidden in the fine print, a tactic critics have dubbed the \u201cloyalty penalty<\/em>.\u201d<\/p>\n ACCC commissioner Anna Brakey said the best way for consumers to take control is to compare plans regularly and switch if needed. \u201cThe very best thing people can do to save money is to switch plans \u2013 either moving to a cheaper plan offered by their existing retailer or changing retailers,<\/em>\u201d she said to Brisbane Times.<\/a><\/p>\n The watchdog\u2019s research shows that many households are paying rates above what\u2019s known as the default market offer \u2014 a benchmark price set by the government. The reason? Most customers never opt in to that default plan or bother to check what else is available. Retailers, meanwhile, have built business models around customer inertia.<\/p>\n Attractive introductory rates are used to bring new customers in, but once the contract expires, prices quietly climb. For years, this cycle has gone largely unnoticed.<\/p>\n In response, state and federal energy ministers have agreed on a set of reforms that will come into force in July next year. The new rules will limit how often retailers can raise prices \u2014 no more than once a year \u2014 and will ban the practice of quietly increasing rates during fixed contracts. They\u2019ll also outlaw loyalty penalties, ensuring customers who stay with their provider don\u2019t end up paying more than the default offer.<\/p>\n Energy Minister Chris Bowen said the aim is to make the system fairer. \u201cAustralians deserve a fairer go when it comes to their energy bills,\u201d<\/em> he said, promising the reforms will make it harder for energy companies to exploit long-term customers.<\/p>\n The federal government, meanwhile, is ending its power bill subsidy scheme, which has cost billions of dollars since it began. Treasurer Jim Chalmers said it was time to move away from direct cash relief and instead focus on long-term structural reform. Future initiatives, such as the Solar Sharer program launching in 2026, will offer households three hours of free power each day to encourage smarter energy use.<\/p>\n For now, the ACCC\u2019s advice is simple: check your plan. Australians could save hundreds each year just by switching or updating their deal. It might not sound like much, but in an economy where every dollar counts, those savings can make a real difference \u2014 especially when the power bill<\/a> arrives and there\u2019s one less surprise waiting in the envelope.<\/p>\n\n\nWhy Staying Put Costs So Much<\/h2>\n
New Rules to Rein In the Energy Market<\/h2>\n
A Shift Away from Short-Term Relief<\/h2>\n
Small Steps, Big Savings<\/h2>\n