High electricity bills causing bill shock among more than a third of SA households

MORE than a third of all South Australian households experienced “bill shock” when they received their latest energy bill and found it was far higher than they expected, a national study has found.

MORE than a third of all South Australian households are suffering “bill shock” because their most recent energy bill was higher than expected, a national study has found.

The Advertiser has been given exclusive access to the results of energy comparison service iSelect’s survey, which shows more than half of the state’s households reported an increase in energy bills in the past 12 months.

The survey also found that 17 per cent of SA households were cutting back in other areas in order to pay their energy bills and that around 36,000 households in the state had been on a hardship program during the past 24 months.

The study, conducted for Galaxy Research, assesses the attitudes and behaviours of more than 1000 Australians towards energy affordability.

Low-income households and renters are finding it the most difficult to pay their energy bills and households with children are most likely to be cutting back in other areas to meet energy costs.

iSelect’s Laura Crowden said that because above-average summer temperatures were forecast, it was likely many SA households would continue to feel pressure from energy bills.

“Most of us are prepared for large winter energy bills but higher-than-expected bills during summer can often take us by surprise,” Ms Crowden said.

“Keeping airconditioners running around-the-clock and the extra energy consumed by kids at home using TVs, computers and aircon during the school holidays can result in summer energy bill shock.”

More than half of the state’s households have reported an increase in energy bills in the past 12 months.

Continuing the state’s reputation as a leading user of alternative energy, SA households nominated the solar power options as the most important factor apart from price when choosing an energy provider.

Membership rewards and customer service were also considered important.

More than 14 per cent of SA households have proactively switched plans or providers in the last 24 months in search of better deals.

But half of those contacted said they had not looked in to other options to see if bills could be reduced.

“That suggests some South Australians are paying more than they need to and haven’t embraced the opportunities offered by increased retail energy competition,” Ms Crowden added.

“Generation Y (people born from 1980 to late 1990s) are more likely than Baby Boomers to use a comparison website to compare energy plans and providers.

“Those in capital cities are twice as likely to shop around online for a better energy deal as those in regional areas.

“The same goes for homeowners and renters, with tenants less likely to use a comparison website to compare energy providers and plans than homeowners.”

iSelect Top 5 summer energy saving tips

1. Set the airconditioner above 23C: 23-25C is comfortable, while keeping costs down. Every extra degree down can increase energy consumption by around 10 per cent

2. Use fans: They only cost 2c per hour to run and are a good alternative to airconditioning. They cool the temperature by 2-3 degrees and can move around the home with you

3. Keep the cool air in and the hot air out: Close curtains, blinds and awnings early in the morning to avoid the heat of the day. Open windows in the evening to let cool breezes in.

4. Turn off while on holiday: Don’t leave appliances running while you are away on holidays — turn off hot water systems, phones, televisions & computers.

5. Barbecue: Using the oven or stove on hot days will only heat up the house further. Instead, head outside to the barbecue.