Electricity prices are on the way down – and are tipped to continue falling – with the government regulator recently cutting the maximum amount energy providers can charge in some states.
What’s more, last year the ACCC estimated households could save up to $219* by shopping around for a better deal. In short, you could make big savings.
But many households are still reporting higher than expected energy bills. Sound familiar? It could be time to switch and save.
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See how much you could save
Even though electricity prices have continued to drop, we’re still getting a nasty surprise when we get sent our energy bills.
Compare Club’s Bill Shock Index research found that 85% of Australians experienced ‘bill shock’ in the past three months. Costs from energy providers were significantly higher than anticipated for 40% of people.
Government action is pushing bills down
Fortunately, there’s some relief in sight. The Australian Energy Regulator (AER) has announced a reduced Default Market Offer (DMO)** that will cut household energy bills by up to $116 for consumers across New South Wales, South-East Queensland and South Australia.
But — and it’s a big but — the DMO simply caps the maximum price energy providers can charge customers, and is not the most competitive deal you can find on the market.
And even if you’re on a discounted deal, energy providers will often move you to a higher tariff when your discount period ends.
Your bill should be lower
Energy prices are also dropping in Victoria. Falling wholesale energy prices mean some energy providers have cut prices by as much as 27 per cent lower than the Victorian Default Offer (VDO).
That’s why it’s vital to regularly compare energy providers to find the best deal that’s available to you. It’s one of the easiest ways to slash your bills.
Compare Club CEO Andrew Davis told finance website YourLifeChoices that households who switch energy providers could save hundreds of dollars.
“Reviewing all your plans once a year is a form of financial ‘hygiene’, and you’ll inevitably feel more in control of your finances and avoid that horrible ‘bill shock’ feeling down the track,” said Mr Davis.
So how much could you save? The Electricity and Gas team are ready to cut your costs today.
Here’s How You Do It:
Step 2: After answering a few questions, you will have the opportunity to compare quotes in your area and could be eligible for significant savings.
This article is opinion only and should not be taken as financial advice. Check with a financial professional before making any decisions.
*ACCC, Enquiry into the National Electricity Market, November 2020
**Australian Energy Regulator, Electricity customers on a standing offer will share in over $65 million of savings, April 2021