Save hundreds by switching your electricity provider

Households have been hit hard with soaring energy bills but by taking action you could end up saving yourself hundreds of dollars each quarter.

Despite the squeeze on household finances in 2020 many Australians still don’t bother to review one of their most important costs – energy.

Over the past decade electricity prices have soared, but the Australian Energy Market Commission’s 2019 report found this should change.

They’ve forecasted a downwards trend in charges resulting in savings of about $97 or 7 per cent in the period to 2022.

This forecasted drop is due to a reduction in wholesale, network and environmental costs.

Energy prices have long been a concern of many households but new independent research commissioned by Discover Energy quizzed 1000 Australians and found:

• 47 per cent have never changed energy provider.

• 25 per cent have been with their retailer for more than 10 years.

• 31 per cent don’t know how much they are charged for energy.

• 76 per cent feel they pay too much for energy.

Financial markets dealer Mark Flynn, 39, his wife Jenny and two children recently moved homes which prompted him to reassess their energy charges.

“We switched (retailers) a few months ago and rather than go with the big retailers, we needed to make a decision of who to go to,” he said.

“We are saving almost 30 per cent off our bill.”

Mark Flynn with kids Zachary, 3, and Ethan, 1, pictured at their apartment in Sydney. They recently switched energy providers to save. Picture: Sam Ruttyn

The family’s energy costs for their two-bedroom apartment have fallen from about $700 to about $500 per quarter, which they’ve had to keep a close eye on with both Flynn and his wife working from home during the pandemic.

Discover Energy’s chief executive officer Anson Zhang says Australians should zoom in on their tariff – the price charged for energy use.

“Then look at the discount you may have, such as a pay-on-time discount, guaranteed or pay-on-time discount,” he says.

Discover Energy offers energy deals in NSW, Queensland and SA and is expanding to Victoria and WA in the new year.

But Depending on which location you are in and whether you can choose your energy provider, it’s important to look at the two important charges on your bill – supply and usage.

If a discount does apply, it’s important to understand if it’s just on the supply or usage or both.

“You should also check what offer the retailer gave you when signed up to the account so you can compare your current bill,” Zhang says.

“The best thing you can do is get on the phone and talk to your retailer so they can explain the bill for you.”

He suggests reviewing your energy deal annually to ensure you’re getting a competitive deal.

“Every year every retailer will be updating their rate,” Zhang says.

Financial comparison website Mozo’s spokeswoman Kirsty Lamont says with summer here it’s important to assess your household energy bills as temperatures heat up.

“We’ll start to use our air conditioners more and for many households summer is an expensive time of year for energy bills,” she says.

“If you’re in a state where you can switch providers the biggest saving you can make is by making sure you’re on the cheapest plan.

“Our research shows the average Australian can save over $500 a year by switching to a cheaper energy provider.”

@sophieelsworth

ENERGY TIPS

• Pull out your latest bill and look at the charges.

• See if energy discounts apply.

• Talk to your provider to see if you can reduce your energy consumption.

• Use online comparison sites to compare offers.

• See if discounts apply such as pay-on-time discounts.

• If you find a better deal contact the new retailer and get them to switch you over.

Originally published as Save hundreds by switching your electricity provider