How to save up to $3675 on your power bill

The average electricity bill rose an average of $275 a year between July last year, with another hike looming. But there’s one simple thing you can do to save big.

Queensland households could save up to $3675 on their electricity bills by switching providers, as they face warnings they will likely be hit with a second power price hike just before Christmas.

A new report to be released on Tuesday shows the average Queensland electricity bill rose an average of $275 a year between July last year and now.

Queenslanders are being urged to shop around as another price increase of about $50 is expected by Christmas as retailers pass on the costs of the Australian Electricity Market Operator’s intervention in the market during the electricity crisis earlier this year.

Ironically, $275 is the amount that the Albanese Government had promised to reduce electricity prices by over the next three years.

The Queensland Tariff Tracker report, from St Vincent de Pauls, found the average bill was $2800 a year, based on a market offer for a household on a single rate using 8000kWh.

The difference between the best and worst bills for market offers was $3675 a year.

A few outliers pushed the average up, with ReAmped Energy’s annual bill about $4000 and GloBird Energy more than $5000, based on single rate.

Red Energy had the best rate, based on the same parameters, of about $2000 a year.

The difference between the offers of most retailers, with the outliers taken out, was closer to $800 a year.

The report also found that while electricity prices had been dropping overtime, the big three retailers AGL, Origin and Energy Australia have dropped many of the discounts they were offering.

St Vincent de Paul Society spokesman Gavin Dufty said the results showed the value of shopping around.

St Vincent de Paul's manager of policy and research Gavin Dufty. Picture: Supplied.

“We’d be encouraging people to not be afraid to move to the lesser-known retailers, that is where you’re going to find the best deals,” he said.

Mr Dufty said there was likely to be a second power price rise this year, just before Christmas, of about $50 as retailers pass through costs from the energy crisis when wholesale price caps where hit.

“The price increases washing through now will be top of increased consumption from the cold winter we’ve had. There’s a double pain point,” he said.

“When consumption goes up, you want to be on the cheapest rate.”

Originally published as How to save up to $3675 on your power bill