Energy customers are making one big mistake with their power bills

Naive consumers believe they are getting a good deal on their energy plans despite many people complaining about soaring power prices. But there are a number of easy ways to get yourself a better deal.

Exclusive: Naive consumers believe they are getting a good deal on their energy plans and many are just signing up to a retailer just because they know their brand.

As households battle soaring power prices a comprehensive study of 4000 Australians alarmingly reveals a majority — 59 per cent — are “sticky” customers.

They believe they are on a good deal with their existing provider.

A majority of Australians believe they are getting a good energy deal. Picture: AAP

The data compiled by financial services comparison service Canstar Blue found only 28 per cent of customers have bothered to switch energy providers at least once in the past two years.

The firm’s spokesman Simon Downes said there was a “difference between thinking you’re getting a good deal and actually getting a good deal.”

“Given the recent focus on energy prices I’m shocked that so many Australians are content with what they are paying,” he said.

“Unless you regularly compare your options and check how your provider and plan stacks up in the market it’s really difficult to say with any certainty that you are getting a good deal.”

Following recent recommendations from an Australian Competition and Consumer Commission’s inquiry into electricity prices, the Federal Government has moved to roll out a default market offer in 2019.

This will put a cap on what retailers can charge for electricity.

Market offers can change at any time.

Just 28 per cent of customers have bothered to switch energy providers at least once in the past two years. Picture: iStock

It also protects loyal customers on standing offers — on these deals retailers cannot change their pricing more than once every six months.

The ACCC’s report highlighted that the electricity retail market is too confusing, making it difficult for consumers to hunt around for a cheaper deal.

Energy Australia chief customer officer Chris Ryan said it was doing everything possible to keep its 2.6 million customers.

“It always works best for us to keep our customers, that means pleasing them,” he said.

He said customers should review their energy costs annually.

Origin spokesman Stuart Osbourne advised customers to check their latest bill to see what deal they are on and also discount they may be receiving.

“If they want to see if they can get a better deal they should call their current retailer or have a look online,” he said.

TIPS ON GETTING A GOOD DEAL

- Use comparison websites including the Energy Made Easy website to compare offers.

- Talk to your retailer and ask them to explain your deal.

- Ask them to break down the supply and usage charges.

- Phone up rival retailers and see what they can offer you.

- Check billing and payment arrangements.

- See if you can get further discounts.

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Originally published as Energy customers are making one big mistake with their power bills