South Australians urged to shop around as power bills go up without their knowledge

AS thousands of South Australian are set for a power bill price hike, new research shows how money can be saved on household energy bills.

The SA Opposition says over 2800 households have been forcibly disconnected in the last three months.

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HOUSEHOLDS are missing out on electricity discounts because they are failing to shop around, new research shows.

New figures from financial research company Canstar show 68 per cent of South Australians have remained with their energy provider for five years or more — prompting calls for more SA households to look around for the best deals.

Canstar editor, Simon Downes, said three out of four SA consumers think they are getting a discount, when they are probably not.

“The fact is that the best energy deals are usually reserved for new customers, so unless you have switched in recent years, you are almost certainly paying too much,” Mr Downes said.

“Chances are their discounts expired long ago and now they are paying over the odds.”

“Energy discounts typically only last for 12 months and should be treated as introductory offers.”

“South Aussies are obviously paying too much for power in general, but consumers also need to help themselves a bit and make the most of a bad situation.

Mr Downes recommends consumers in SA stick with competitive variable rates, as long as they regularly shop around for the best deals.

Canstar surveyed 2000 Australians from Queensland, New South Wales, SA and Victoria for the research.

The research comes as thousands of AGL customers will be slugged almost $350 a year more for their power after the state’s largest energy provider announced a price increase from July 1.

The state opposition said on Saturday that the increase will result in a surge of families and households being disconnected for non-payment of bills without swift action by the Australian Energy Regulator (AER).

Opposition human services spokeswoman Michelle Lensink said the regulator needs to increase the threshold of debt — at which it permits the disconnection of people from the grid — from $300 to $500.

“The current $300 threshold is already too low, with South Australians suffering from the highest electricity prices in the nation,” she said.

“Over 2800 households have been forcibly disconnected in the last three months and (are) now facing another massive increase in the price of power.

“The threshold for disconnection needs to be increased to $500 so a more appropriate long-term payment scheme can be accessed.”

Energy Minister Tom Koutsantonis said AGL customers affected by the price increase should consider moving to a market offer.

“Customers can save up to $900 by switching retailer, and can avoid being disconnected by calling their retailer and asking to be put on a hardship program or payment plan,” he said.