Simple tool could save Australian households hundreds in just a few clicks

A new online tool is helping Aussies save hundreds of dollars — and the best part is you can do it in a few clicks, with no phone calls.

Australian households are able to save hundreds of dollars in just a few clicks with a little-known service.

The Energy Switch comparison tool is a NSW government initiative that lets people compare the plans of all household electricity and gas providers.

Unlike other comparison websites, however, Energy Switch will let eligible customers initiate the switch process, all without leaving the site with no phone calls required.

The service, driven by NSW Minister for customer service Victor Dominello, has been used by more than 7000 people since it first launched last November. The average household saves $420 a year after using the site, with the most dramatic savings being $6000.

NSW residents on average spend $1950 a year on their electricity bills, according to comparison website Electricity Monster.

But most consumers could be saving hundreds by shopping around. The problem is many either don’t have the time or energy to switch, according to Ross Sharman, who founded Accurassi which built Energy Switch.

“Consumers get paralysed with analysis, you see three different answers through two different comparison sites,” he said.

“Energy is up there for cost of living, right after mortgages, but it’s something that people can easily save on.”

Mr Sharman said that the tool was designed to be a one-click energy solution that would let consumers upload their bill and switch.

“The whole premise is to make it easy for the consumer. Currently comparison sites don’t give you enough of ‘what you would save if you switch’ as the only way to do that is to get a handle on your bill,” he said.

Energy bill SHOCK ? 🙀⚡️

I am here with our great Premier and Stuart Ayres at Service NSW to launch ENERGY SWITCH 👏🏼👏🏼 Pejman (also in the photo) saved $1300 on his energy bills! No wonder Pejman has the biggest smile 🙂
Go to: https://t.co/VBHmHbzPyL pic.twitter.com/8jA2v8G7Ej

— Victor Dominello MP (@VictorDominello) November 27, 2018

By analysing the bill, Energy Switch is able to give a side by side comparison on exactly what consumers would save if they switch.

The tool looks at every retailer and tariffs in the market, of which there are more than 40 on the eastern seaboard and thousands of various tariffs. It can then work out deals available and even if a provider offers benefits or green energy options.

“There is no way for a person to look at all these metrics. The objective is to allow someone to share a bill and get an impartial result,” Mr Sharman said.

A news.com.au staffer who lives on the northern beaches in Sydney with her husband and three children received a whopping $922.49 electricity bill for the May to August quarter.

She ran the bill through Energy Switch and would have saved $224.86 for that quater and made a yearly saving of $912.55.

She also tested her $611.75 bill for the August to November quarter, and would have saved $148.12 if she made the switch to Local Saver. This would equate to a $601.12 saving over 12 months.

Now that’s a big saving.

The impartiality of Energy Switch is important as consumers could trust they were getting the best deal, as opposed to the one with the highest commission for the comparison site. Many comparison sites often take a commission by recommending certain products over others and in fact, the Australian Competition and Consumer Commission (ACCC) is taking one such site, iSelect, to court over misleading conduct.

“Energy Switch is an independent view for the consumer. The consumer knows they will get an impartial view and be able to switch to a product that will actually benefit them,” Mr Sharman said.

Mr Sharman said that people needed to stay on top of their bills given the ever-moving market and the amount of people who struggled to pay their bills.

“It’s a growing problem and there is easy money to be saved here. You should check your energy bills every six months to make sure you get the best price available.”

Energy Switch comparison tool in action, using a family-of-five’s $922 electricity bill.

ENERGY SWITCH EXPANSION

Initially for consumers, Energy Switch will be rolled out to small businesses under the government’s budget measures.

The rollout is part of the government’s big cost savings for small businesses with Premier Gladys Berejiklian promising access to the program for 760,000 businesses.

“Small business is the backbone of NSW, employing more than a million people, and helping to shape the future of the state we all love,” Ms Berejiklian said.

“The Liberals and Nationals know how important it is to ensure businesses can thrive and grow, so that they can employ more people.”

The program will also expand to include providers that operate on a new type of subscription plan. The subscription plans will act like a phone bill where people choose from a range of plan sizes meaning that consumers will just pay the same price each month.

“Ultimately I believe this is where the market is headed as it is easier for the consumer to understand and manage,” Mr Sharman said.

Energy bills could be changing as the market shifts to subscription plans. Picture: AAP Image/David Mariuz

The other initiative for the program is thanks to the Federal Government’s Consumer Data Right legislation. The legislation will allow people to view, compare and switch all aspects of their financial life in simpler ways.

Initially this is being used for banking where it is called Open Banking, but will expand to energy, insurance and telecommunications.

Mr Sharman said Energy Switch was already modelled off what the Consumer Data Right movement allowed and would be building out into other areas.

“Consumers will soon be able to see across multiple aspects of their life like energy and insurance so they can see what they would save upon switching,” he said.

It is also the plan of Energy Switch to be a built-in feature on banking apps which will allow people a seamless switching experience.

“Within the banking app when you pay your bill you’ll be prompted to go out and scan the market. We want it to be seamless as currently it still takes a bit of effort to upload your bill but if it’s done in your bank, then it’s easier,” Mr Sharman said.

OTHER WAYS TO REDUCE BILLS

Switching providers is not the only way to bring down costs. The Golden family in Melbourne found that installing solar panels helped them save $1300 in their first year.

Geoff Golden installed the Q CELLS solar panels on his home in the Melbourne suburb of Clifton Hill and is projected to save more than $6500 in five years. The savings weren’t even his main priority.

Geoff Golden managed to save $1300 by installing solar panels on his roof.

“Going solar, becoming energy independent and sustainably-minded was always our primary concern,” he said.

The financial aspect comes secondary, but it’s great to be able to see our bank balances a little higher each money with not having to pay excess electricity bills.”

Victoria has the second-highest retail electricity prices in Australia as energy prices have soared more than four times the inflation rate in the past decade.

Mr Golden said the family took advantage of the Solar Rebate Scheme to get the panels installed and the savings they made allowed the family to have a better quality of life.

“We’ve been able to enjoy that extra money by treating the family to evening meals out and doing more family activities — it’s great to be able to spend more time together,” he said.