Victorians flock to fixed-rate energy deals to try and save

COST-conscious Victorians worried about energy bills have signed up to a trial that will see them rewarded for minimising their power usage.

COST-conscious Victorians worried about energy bills have signed up to a trial that will see them rewarded for minimising their power usage.

The pilot program, which was rolled out late last year in Victoria, NSW and South Australia, has yet to be used. It urges customers to reduce their energy consumption on high-demand days for energy.

This will be done through SMS alerts, and may result in customers receiving money back for measures like turning down air conditioners or cutting backyard pool pumps for a short period.

In a test before Christmas, 8000 of the 10,000 Powershop customers in the program were able to curb their consumption by 10 per cent with two hours’ notice.

Powershop chief executive Ed McManus said people were asked only to make “smallish” changes.

“This is a trade off,” he said.

“It’s not an enormous amount of time and you don’t need to do that much, but all of that does add up over many thousands of people.”

Households are continuing to be hit by energy prices rises as the costs soar while trying to keep cool during summer.

Tens of thousands of Victorian energy customers are taking up fixed-rate deals in a separate move that allows them to avoid price hikes.

Analysts have estimated annual electricity and gas bills will jump by $300 for typical Victorian households following January price hikes, and consumers are being urged to check their statements to ensure they are not paying more than they need to.

Victorians are paying about $300 more for gas and electricity usage in 2018.

New figures from one of the nation’s largest retailers, Energy Australia, have revealed tens of thousands of customers are trying to escape future price rises by taking up two-year fixed plans.

Other large retailers including Origin offer predictable plans, which allow customers to pay the same amount for electricity or natural gas for 12 months.

Since EA rolled out its ­Secure Saver plan, which is available to both gas and electricity customers, in October, more than 80,000 consumers have signed up.

But Vinnies energy expert Gavin Dufty said anyone locking in a fixed-rate deal needed to weigh up the charges.

“It’s like a home loan, do you want a fixed home loan or a variable home loan,’’ he said.

“At the end of the day the fixed-energy offers suit people who want certain and they know what each bill will be, it’s a set and forget.

“It won’t necessarily be the cheapest deal, but at least you know what you are up for.”

Victorian households are tipped to feel the pinch of rising costs this summer as temperatures soared across the state last week, including in Melbourne, where it rose to above 40 degrees.

Energy Australia chief customer officer Kim Clarke said the closure of Hazelwood power station and limited energy supply was to blame for rising costs.

Energy Australia chief customer officer Kim Clarke said customers are signing up to fixed-rate energy deals to avoid price hikes.

“There’s supply and demand, when lower supply and demand stays the same it means prices go up,’’ she said.

“Secure saver means no price rises, if prices go down yours will too and at the end of the benefit term we will move you to the very next best offer.”

Energy comparison website comparethemarket.com.au’s spokeswoman Abigail Koch said there was always a “trade-off” to consider with fixed-rate deals which needed to be taken into consideration.

“With fixed price deals, it’s that exit fees often apply if you cancel your energy contract early,’’ she said.

“And you should also check that the price — made up of the discount, the usage charges (what you pay for the energy you use) and the supply charges (the cost of getting energy into your home) — isn’t higher as a starting point compared to other deals that are available to you.”

She also suggested making sure you sign up to direct debits or pay your bill on time to ensure you get applicable discounts for doing so.

The popularity of the secure saver deal has resulted in the retailer extending the offer which was due to end on January 31 through now until April 18.

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Originally published as Victorians flock to fixed-rate energy deals to try and save