The key things to look for on your energy bill to save money

CONSUMERS can make some simple changes that can quickly bring down their energy costs.

CASH-strapped consumers are demanding easier ways to compare energy prices to work out whether they are paying too much.

Supply and usage charges are the two key components to zoom in on when signing up to any energy plan and this can end up helping you save a fortune on your bills.

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Origin spokesman Stuart Osbourne said electricity usage charges make up the “bulk of your bill” and it needs to be watched closely.

“You will have a kilowatt per hour charge and that’s important when you are shopping around and looking for other offers in market,’’ he said.

“Then there is the supply charge which is pretty standard and doesn’t usually vary across retailers.”

Customers should regularly check their energy bills and do comparison to ensure they are not paying too much.

Independent research compiled on behalf of Origin quizzed more than 1000 Australians and found:

— 70 per cent of people said it would help if they could easily compare bills from current providers with offers from other retailers.

— 69 per cent agree if comparison rates on plans (a rate that includes all the fees and charges) were provided customers would use this as a handy tool to help cut costs.

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But consumers are often left bamboozled on whether they are getting a decent deal with many retailers spruiking headline discounts.

It’s here where it’s very easy to get caught out.

“If you are looking at a headline discount just understand what that discount is off,’’ Mr Osbourne said.

Energy prices in Australia have soared in recent years which has put more pressure on consumers’ hip pockets.

In many cases discounts are usually just off the usage component, not the combined usage and supply charges.

Energy prices across the country continue to soar, hitting households’ hip pockets hard — last year many consumers were hit by double-digit price rises.

Financial comparison website iSelect’s spokeswoman Natalie Pennisi urged customers to compare energy offers, ask questions and make sure you get the best deal possible.

“If you haven’t reviewed your energy bill recently you’re probably paying more than you need to,’’ she said.

“There is plenty of competition out there in the market so it’s a great time for consumers to compare and/or make the switch to get a better value deal.”

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WAYS TO SAVE

— Look for discounted offers.

— Understand which components of your bills discounts are on.

— Pay by direct debit.

— Electronic on time payments can result in discounts.

— Make sure you shop around.

— Consider flexible payment options.