Victorian energy provider Electricityinabox begs customers to leave
The CEO of an Australian energy provider has begged customers to leave the company, saying they would be “crazy” to stay and pay higher prices.
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A Victorian energy provider has urged customers to move to another retailer as soon as possible, adding its stunning letter was not a “scam” as electricity prices skyrocket.
The small retailer, Electricityinabox, is the seventh provider to tell customers to go elsewhere, after similar statements from firms including ReAmped, LPE, Discover, Elysian and Future X.
Morgan Duncan, the CEO of Electricityinabox, told customers that “only the lazy or crazy would stay” with his company, as its rates are set to go up 95 per cent on July 1, which would mean bills almost double.
The letter is blunt.
“We need you to switch electricity providers. The sooner you do, the better chance you have of finding a good deal,” it says.
“Other retailers have purchased energy a long time ago at a much lower cost and can still offer you a hot deal. Time and their spare capacity for customers may be running out.
“We recommend you switch to a better deal today as switching is not always immediate. In some parts of Australia it can take well over a month. Act now to avoid the price hikes.”
Mr Duncan also had to reassure customers that the company’s email had not been “hacked” and the request was not a “scam”, adding that clients wouldn’t help the company by staying on.
He said Electricityinabox was not closing down but was exiting “this part of the market”, stating that four other providers had also left.
Many fixed rate plans are disappearing and at least 11 retailers are now closed to new customers in a dire sign for competition including Momentum, Mojo, CovAU and Nectr, according to consumer advocacy group One Big Switch.
It comes as regulators announced that the government price cap will rise by 1-9 per cent in Victoria, 7 per cent in SA, 11 per cent in Queensland and 8-14 per cent in NSW for about one in 10 households on “default market offers”.
The price hikes have been caused by soaring wholesale prices, which have increased about sixfold since April 2021.
Gas is now capped at $40 a gigajoule – five times what it was a year ago.
“Some homes could see their bills more than triple if they don’t switch retailers ASAP so we need to get this message out there,” Joel Gibson from One Big Switch said.
“Smaller retailers are also more exposed to these skyrocketing wholesale prices if their customer base doesn’t shrink down, so they need people to leave.
“The tone of the letters from these smaller retailers says it all – if people don’t switch, their bills could skyrocket and smaller retailers could go under.”
But one million Aussies facing rising energy bills are too lazy to switch providers, according to new research by Finder.
Australians are paying on average $320 on their quarterly energy bill in the second quarter of 2022, up from $296 in the first quarter, with warnings that larger rises are on the way.
A cheaper plan would encourage 56 per cent of respondents to switch plans, while 21 per cent said they would be inclined to switch if offered rewards, such as free streaming services, according to the research.
Green energy options would motivate one in five (19 per cent) to switch, and bundle options for energy and gas or energy and internet would incite others to change providers.
Sarah Megginson, senior editor of money at Finder, said hundreds of thousands of Australians are feeling the pinch of the rising energy prices.
“Wholesale electricity prices have more than doubled in the last 12 months due to the situation in Europe and demand at home driving up coal and gas prices,” she said.
“Soaring wholesale electricity prices have hit Australian energy retailers hard. They’re being left with no choice but to pass on costs to customers – or in some cases beg them to leave.
“Given wholesale prices make up 30-40 per cent of a customer’s energy bill, there’s no avoiding the impact of rising costs on your energy bills.”
Ms Megginson said now is the time to consider switching energy providers.
“In light of everything that’s happening in the energy market, every Aussie needs to assess their bills, look out for communications from their power company, shop around and lock in a good energy deal before all hell breaks loose,” she said.
“When switching energy plans it is important to look out for discounts, variable vs fixed rate plans, disconnection fees and other costs. Before you switch, it is also key to compare and call other providers.”
Originally published as Victorian energy provider Electricityinabox begs customers to leave
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