Three tips to find the best electricity deals
New research shows Australians are missing out on $500 million in savings on their household bills – and it all comes down to this very common mistake.
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With the cost of energy set to plummet across the country experts are urging people to check their habits in order to save money.
Australians are missing out on $500 million in electricity savings by failing to shop around and find cheaper deals new research from St Vincent de Paul Society has found.
The study reviewed bills in Victoria, NSW, Queensland and South Australia, and found households were paying up to $200 a year too much for their electricity, even though energy prices are decreasing. And it all comes down to one common mistake – loyalty.
Luke Blincoe, CEO of independent electricity provider ReAmped Energy, says shopping around for a better energy deal is a lot quicker and easier than many people assume.
“Wholesale energy prices are reducing as our dependence on more expensive fossil fuel-based energy decreases as a result of investment in renewable energy generation like solar and wind farms. With prices decreasing, there’s no better time to check that you’re getting the best deal with the best retailer,” he says.
“The single biggest mistake is to delay, thinking that your loyalty will count for something. People think switching energy providers will be hard, but it literally takes a few minutes and you’ve got a pretty high chance that you’ll end up saving hundreds of dollars. That few minutes might be the most productive use of your time all year!”
Gavin Dufty, manager of policy and research at St Vincent de Paul Society, says up to six million Australians are on more expensive contracts than they need to be because they didn’t shop around as energy prices started to drop around mid-2020.
“Wholesale prices have come down significantly and there’s also been changes to poles and wires prices,” Mr Dufty told the ABC.
“That’s washed through the electricity market, but we’re really concerned that people haven’t gone out there and refreshed their electricity accounts so those savings end up in people’s pockets and not the pockets of the big multinationals.”
How to get the best deal on electricity
If you are going to shop around for a better deal on energy, Mr Blincoe offers the following tips to get the best electricity deal for you.
– Don’t pay a cent more – “At the end of the day you get exactly the same electricity, delivered over the same wires, no matter who you sign up to, so it makes no sense to pay a cent more.”
– Don’t commit to a contract – “Given that prices are tracking down, we’d advise caution with contracts, as they could prevent you getting a better deal in the long run.”
– Don’t accept less than stellar service – “If a retailer is offering good pricing and no lock ins, it’s risk free because they have to offer great service to keep your loyalty. Lock in contracts remove the tension on service and may correlate with poor customer experience.”
FAQs: Electricity bills
Are electricity prices going up?
While prices are predicted to fall this year, they will still be higher than they were 10 years ago.
When I switch energy provider, will I lose power as they change over?
No, you will not lose power when you switch your energy provider. All energy in your area is supplied from the same distributor, which means all your retailer has to do is simply take over your account.
What should I look for when comparing electricity plans?
To secure the best electricity deal for you, you need to compare retailers. To nail this task and get the best possible deal for you, ask these questions.
What are the peak and off-peak rates for each retailer?
What is your average household usage?
What is the supply charge for each retailer?
What is the green energy rating for each retailer?
Are you prepared to be locked into a contract and, if so, for how long?
Will you have to pay cancellation fees if you wish to change retailers again?
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