Electricity prices: how to reduce the pain of your next bill

Crippling rises in electricity costs are prompting people to find fresh strategies to ease the financial pain. Experts share their tips.

Want to save money on soaring home energy costs? It might be worth heading back to the office where the boss pays for power.

As home electricity costs continue to soar, Australians are seeking energy savings in different ways – beyond the traditional advice of turning off appliances, cutting draughts, installing insulation and shutting down second fridges.

Official inflation statistics show electricity prices jumped 13 per cent last financial year, and since July 1 many households have been paying 20-30 per cent more in usage charges.

Energy comparison tech company CIMET’s CEO, Ankit Jain, says there are new and old ways to save.

“We’re seeing an increasing number of workers returning to the office as power bills have continued to soar,” he says. “This is one way to tackle the issue.”

SOLAR STILL PAYS

Others are switching to solar energy, which can “offset the entire cost of working from home”, or changing energy companies, Jain says.

“The average Aussie can save up to $350 per annum on their energy bills by switching to a better provider,” he says.

“In a competitive market, there are always cheaper options and comparing energy offers is one of the easiest ways to save.

Consumers are battling bill shock after big increases in electricity costs. Picture: iStock

“You might also consider switching to energy-efficient light bulbs. LED light bulbs consume 10 watts of energy compared to about 60 watts for incandescent bulbs. That’s around $210 a year shaved off your electricity bill.”

If considering heading back to the office simply to save money, remember to calculate commuting costs and times before deciding.

Solar Analytics CEO Stefan Jarnason says some households are increasing the size of their rooftop solar system to help cover the cost of daytime energy use while working from home.

“Solar is just as good value as ever with a typical five-year payback for most households,” he says.

“While feed-in tariffs have reduced, electricity prices have continued to increase, and the upfront cost of a solar system has fallen.”

PUMPING HEAT

Jarnason many households have been installing heat pumps, which extract heat from air and transfer it to appliances such as air conditioners or hot water systems.

Heat pumps can cost between $1000 and $5000, depending on government rebates in some states and other factors such as size and quality.

“On average the cost for a good quality heat pump suitable for a typical family is $3200,” Jarnason says.

“The average savings for this heat pump are $570 per annum, so this represents a 16.8 per cent return on investment or just under six-year payback.”

Anyone seeking energy-saving advice can head online and use any of the many websites operated by energy companies, government agencies and comparison services.

Some tips are weirder than others. Momentum Energy asked its customers and the suggestions included setting two-song shower timers, using pets as hot water bottles, employing mirrors to redirect sunlight and warmth, watching weather reports to maximise solar panels and appliances, and camping for a few days so airconditioners are turned off.

Comparison websites can help people save money, but CIMET’s Jain says not all are created equal.

“There are many different comparison sites that include hard-to-spot sponsored ads,” he says.

“Some even prioritise results based on commission, not the best choice for the consumer. When you’re choosing a site, make sure it compares a large number of retailers, and you can personalise the inputs.”

Jarrid Keers with wife Laura Morris and daughters Chloe and Ruby. Picture: Supplied

SWITCH TO SAVE

Jarrid Keers and wife Laura Morris found that switching electricity providers saved them money.

“Our last bill was almost double the previous even though we have solar,” he says

“We don’t often mind the fluctuations in pricing but that seemed excessive.

Keers says his family is conscious of energy usage.

“However, with two young kids it’s very difficult to reduce the use of appliances in a way that would make much of a difference,” he says.

“We compared a range of different pricing options using CIMET’s comparison service, Econnex … we found one we liked and switched on the spot, resulting in a significant drop in our bills.”

Originally published as Electricity prices: how to reduce the pain of your next bill