Australians stick with the same energy provider for years and never bother to switch
Loyal energy customers are sticking with their providers for years, but they could be missing out on a better deal by looking at other options.
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Exclusive: Many loyal energy customers have never once bothered to jump retailers and misconceptions about switching is holding them back, alarming new findings show.
Some customers believe they’ll be hit by exit fees and even think they will be left without electricity for days is they do move energy companies.
New analysis by financial comparison website comparethemarket.com.au found about 45 per cent of customers have failed to switch energy plans or have stuck with the same provider for at least five years.
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And 61 per cent concede they are probably not getting the best deal on their energy.
Comparethemarket.com.au’s spokeswoman Abigail Koch said there were “many misconceptions” about the industry despite it being pretty simple to switch and save.
“It doesn’t matter who your energy provider is, you still get the same electricity through your wires it really just changes who bills you at the end of each month or the end of each quarter,” she said.
“A third of people think you actually have to disconnect your power and have it reconnected, so there’s that fear factor of having a couple of days in between sitting in the dark.”
Ms Koch said that was not the case and switching “was a seamless hand over.”
Energy retailers have come under intense scrutiny in 2018 for soaring power prices which has been one of the biggest burdens on household budgets.
Comparing energy prices has remained incredibly confusing for customers, particularly with retailers advertising hefty discounts which makes it even more difficult to compare apples with apples.
Alinta Energy’s executive director of retail markets Jim Galvin said the Christmas break was the perfect time to review your energy deal and save in 2019.
He said it has been proven customers can save up to “$365 a year for about 10 minutes work.”
“It’s very easy to sign up with most retailers online and once you’ve done that they’ll take care of the switch,” Mr Galvin said.
“Exit fees have either been banned in some states or are very rare, so don’t let that stop you from getting a better deal.”
Ms Koch said if have been with the same provider for more than two years “you are likely to be paying the non-discounted rate which is possibly the most expensive”.
EnergyAustralia’s chief customer officer Chris Ryan said about 10 per cent of their customers
“are still on basic, full-price rates and it’s costing them a lot of money.”
“We do know energy is more complicated than it needs to be, and it can be hard for people to know they’re getting a fair deal,” he said.
“But people are often surprised how easy it can be to find a better deal.”
Customers should whip out their previous energy bill and look at their supply and usage charges and kilowatt charge per hour to help compare against other offers.
Originally published as Australians stick with the same energy provider for years and never bother to switch