Electricity experts share their top ways to save on power bills

Energy experts say surging household power prices can be brought under control through these cost-saving strategies.

ELECTRICITY consumers are being urged to pick up the phone to ensure they’re not being ripped off by rising power prices, which have surged up to 33 per cent this year.

Savings of $1000 annually are possible by switching from an expensive to a cheaper energy plan, and hundreds more dollars can be saved by reducing household power use and buying energy-efficient appliances.

Step one is to compare your current plan with your state or region’s reference price, also known as a standing offer, which is set by governments and regulators.

The Australian Competition and Consumer Commission says energy companies must show how their plan compares with the reference price, which people can use to find a good deal.

One Big Switch spokesman Joel Gibson said before 2022’s price rises, electricity plans costing more than the reference price were rare, but now he was seeing letters to customers saying their plan was “in some cases 32 per cent above the reference price”.

“I wouldn’t be surprised if there are a lot more people on plans above the reference price and don’t realise it,” he said. Mr Gibson said reference prices were often mistaken as price caps, but retailers could charge more if they notified customers in writing.

Electricity comparison websites energymadeeasy.gov.au and compare.energy.vic.gov.au show a family’s annual bill for the same consumption costs up to $1000 more, depending on the retailer.

iSelect spokeswoman Sophie Ryan said some smaller retailers were no longer accepting new customers because of volatility in wholesale markets.

“While there may be fewer plans and providers available, shopping around may only take a few minutes and could still save you money,” she said.

Ms Ryan said consumers should not set and forget. “Many customers aren’t aware that most energy plans – particularly those featuring discounts – generally expire after a year or two,” she said.

“It’s possibly you could have been automatically transferred to a higher-priced plan.

“Look out for special offers, as some retailers may offer you a better deal if you pay on time, manage your bills online or pay by direct debit.”

Canstar Blue energy specialist Christine Seib said consumers should know what their appliances cost to run and then adjust their behaviour.

“Ducted airconditioning can add almost $1600 a year on average to your electricity costs,” Ms Seib said.

“Even smaller appliances such as your dishwasher and clothes dryer can add, respectively, $128 and $104 on average to your bills. It’s simple – run these less often to save money.”

Canstar Blue says average annual electricity costs climbed 37.6 per cent in Queensland between April and July, 32.8 per cent in NSW, 21.9 per cent in SA, 17.1 per cent in Victoria and 12.8 per cent in Tasmania.

Upgrading appliances to energy-efficient models can be expensive, although some states offer incentives and concessions – shown on energy.gov.au. – to help.

“Each star the energy efficiency rating system represents a cut of about 15-30 per cent to running costs in large appliances so if it’s something you use every day and keep for the long term, buying a more energy efficient model may well pay off,” Ms Seib said.

Mr Gibson said changing an airconditioner thermostat by just one degree could save up to $100 a season.

EIGHT WAYS TO SAVE

• Demand to pay less than the reference price. Most customers have a right to pay no more than a retailer’s “standing offer” set by the government.

• Government and commercial comparison websites allow you to check your current bill and plan against competitors’ prices. Differences can be more than $1000 annually.

• Adjusting an airconditioner thermostat by just one degree – up or down depending on the season – can save $200 a year.

• Ditch the second fridge. A refrigerator bought in 2002 and sitting in your spare room or shed costs about $260 a year to run.

• Switching from halogen bulbs to LED lighting in your home can save more than $100 a year.

• Join the solar rush – there are several ways to put panels on your roof cheaply or for free, through affordable finance, government schemes and other incentives.

• Turn off appliances at the wall, because standby electricity costs households about $100 annually.

• Insulating your home can save up to 45 per cent of energy use in summer, while closing doors and windows and reducing draughts will help further.

Source: Canstar Blue, One Big Switch, Ausgrid

Originally published as Electricity experts share their top ways to save on power bills