‘No reward for being loyal’: Ditch your electricity provider ACCC says

Aussies are being urged to switch energy providers with their loyalty likely costing them hundreds per year.

Aussies sticking with their current energy plans could be costing themselves $238 a year as the consumer watchdog warns loyalty doesn’t pay.

The ACCC urges customers to take the time out to either shop around or at least contact their energy provider following the decline in retail electricity prices that could benefit households.

ACCC commissioner Anna Brakey said Aussies who haven’t changed their electricity plan in the last 12 months are likely paying more than they need to.

Aussies are being urged to switch electricity providers are their loyalty is likely costing them hundreds. PHOTO: NewsWire / Brenton Edwards

“Every three to four months, electricity companies are required to tell you on your bill if a cheaper plan is available. If you get this message, you are paying more than you need to,” Ms Brakey said.

According to the consumer watchdog more than 80 per cent of households in the National Electricity Network could move to a cheaper plan if they shopped around or even just rang their current provider to get a new plan. The report goes on to say households who haven’t switched their energy plans in the last 12 months are likely paying $238 more than those who have switched plans.

It found the longer customers spend on a plan, the bigger the “loyalty penalty” incurred, with those on older plans paying more for energy use.

“The increasing complexity in pricing as the smart meter rollout continues, presents a real challenge to consumers who are trying to reduce their electricity bills,” Ms Brakey said.

“While we are pleased that compared annual prices have decreased from 2023 to 2024 and more consumers are on offers below the government safety net price, a substantial proportion of households remain on prices above these levels.”

The ACCC found many households are still paying above the government safety net price, meaning they are paying more than they should.

The government safety net price is the price consumers are charged if they have never shopped around for another price. They also serve as reference prices to make it easier to compare plans in the market.

The ACCC found the longer a household is with a provider the worse off they are likley to be. Picture: NewsWire / Andrew Henshaw

The call comes despite electricity prices falling rapidly between August 2023 to August 2024 as federal and state governments paid for part of Australia’s electricity bills. Federally, every household receives a $75 per quarter rebate on their electricity bills

The report found that households with offers which are more than a year old are paying $238 more per year than households on newer offers.

“We are urging Australians to take some time this holiday period to have a look on the Energy Made Easy or Victoria Energy Compare websites to see if there is a better plan,” Ms Brakey said.

Originally published as ‘No reward for being loyal’: Ditch your electricity provider ACCC says