Electricity prices are set to rise. Here’s how you can save money

Households across much of Australia’s eastern seaboard could soon face higher electricity bills, as authorities prepare to raise the maximum prices that retailers can charge.

With hundreds of thousands of customers set to be impacted by the increased price caps from July 1, here are some tips from energy experts that will lessen the blow to your hip pocket.

Customers in NSW, South East Queensland and South Australia are set to pay the biggest price increases. Credit: Paul Rovere

Find the best deal

Eighty per cent of consumers could be saving money on their energy bills if they looked around for a better deal, according to the Australian Competition and Consumer Commission (ACCC). So, regularly comparing prices between different providers is among the easiest ways to lower costs.

“If you’re looking to save money, shop around for a competitive electricity plan,” says Canstar Blue data insights director Sally Tindall. “That can potentially inject real relief into your budget if you’re not already on the cheapest plan.”

There are government-run non-profit comparison websites available to consumers depending on their state or territory of residence. The national energy website provides a list of these tools.

Alternatively, you can try contacting your energy provider to request a better deal. After finding a new plan, changing plans is relatively straightforward.

“Your new provider will do the vast majority of the heavy lifting for you by contacting your old provider and breaking up with them ... and then moving your new account over,” Tindall says.

St Vincent de Paul Society’s Gavin Dufty.Credit: Dominic Lorrimer

Gavin Dufty, national director of energy at St Vincent de Paul Society, stresses that this process shouldn’t be a one-off for households.

“We need to [shop around] frequently, maybe annually, because each retailer [has] different positions … it’s not set and forget for them either. Retailers are changing all the time,” he says.

“When you go to shop around, set aside a half an hour and make sure you do it with an energy bill in your hand. If you think it’s going to happen in 10 minutes, it’s not.”

Decrease your energy use

If you’re already on the cheapest electricity deal, it might be time to consider lowering your energy consumption around the house.

“We live in great big boxes,” says Dufty. “The biggest killer is if your box is leaking, or you’re trying to heat or cool big spaces.”

Experts say that Australians should consider installing solar panels.Credit: Natalie Boog

“You want to make sure that you’ve got the door closed if you’re heating or cooling, so you’re not trying to heat more than you need to heat, or cool more than you need to cool,” he says. “Obviously, leaving appliances on that you don’t need to be on, that’s not so helpful.”

Tindall recommends that consumers go back to basics when it comes to conserving energy. No matter how small, slight tweaks to our daily usage can make a big difference.

“They may seem like a tiny drop in the ocean. But if you build them into your everyday routine, you won’t even think about them. And also they can really add up,” Tindall says.

Dufty also says to check whether you are on a ‘time of use’ energy contract. “That means they have cheaper rates at different times of the day,” he says.

While some contracts might offer cheaper energy at night, others could be cheapest during the day. “So change around your consumption … [and make] sure your behaviours line up as best as they can with your pricing structure,” Dufty says.

Know your rights and entitlements

There are various supports available to people who need assistance with electricity payments.

Energy law requires all retailers to offer support to households who are struggling with bills, says Dufty. This includes offering support such as debt deferrals or debt waivers.

“They have to [provide support] and the regulator enforces it, but the only way you get all those supports is if you call the retailer up. So if you’re having difficulties, don’t be shy. Jump on the phone, call the retailer,” he says.

As well as support from your provider, there are also concessions from the state and territory governments, particularly for those with pension or healthcare cards.

These guidelines differ slightly between areas. In NSW, cardholders can apply for the Low Income Household Rebate. In Victoria, concession card holders can sign up for cheaper bills, and missed payments can be backdated for up to 12 months.

“Now’s the time to make sure that you’re getting the best out of the energy market,” Dufty says. “[Providers] are not going to ring you up and say, ‘Oh, by the way, I found a cheaper price for you’. So you go out and get it.”

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