Last updated on 7th January 2020

This may be the most important energy news we’ve ever seen…

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Are you tired of paying high energy bills?

If you’re on a budget, or a senior trying to save, one of the most important energy changes in years happened recently. As of July 1st, the Australian Government set a new benchmark or ‘Reference Price’ for electricity plans.

This new ‘Reference Price’ is a common benchmark price set by the Australian Energy Regulator and varies based on your region. In most cases, retailers are now required to advertise against this new ‘Reference Price’— so when you compare services, the plan that shows the highest discount will always be the cheapest.

This free comparison program is straightforward, easy and fast. That’s why last month alone over 40,000 Aussies have used ElectricityandGas.com.au to compare and save on their energy costs. With only a few minutes, our customers are now finding plans that save them an average of $160 each year.

Here’s How You Do It:

Step 1: Select your State below.
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.

Still not convinced? Here’s how it works compared to the old system.

Here is an example of how it works…

Under the new system, let’s say that this new ‘Reference Price’ for your area is $1000 for 3900 kWh a year.

  • Retailer #1 offers a 50% discount
  • Retailer #2 offers a 25% discount

You can now be sure that if you use 3900 kWh a year you would be paying Retailer #1 $500 and Retailer #2 $750.

Easy, right?

Before July 1st, it was much more complicated. Let’s assume they offered the same discounts for the same 3900 kWh a year:

  • Retailer #1 offers a 50% discount
  • Retailer #2 offers a 25% discount

You may have seen something like this and thought to yourself “Wow! 50% off, what a great deal”. Then switched energy plans to save money…

Only to find yourself paying even more.

While a 50% discount sounds like twice the deal, the actual price could have been higher when compared to the 25% discount.

This is because there was no set rate.

  • If the rate for Retailer #1 was $1800 you would have paid $900 with the 50% discount.
  • If the rate for Retailer #2 was $1000 you would have paid $750 with the 25% discount.

Confusing, isn’t it?

This is why the Australian Energy Regulator decided to simplify things with the new ‘Reference Price’ system — and suggests shopping around to try to find a way to reduce your costs. In their words: “This will make it much easier to find a better deal”.

Last year almost 400,000 Aussies chose ElectricityandGas.com.au to help them compare, switch and save. Now it’s your turn — your savings are only a few clicks away.

Australian Competition and Consumer Commission,
[C1]https://www.accc.gov.au/consumers/health-home-travel/electricity-prices#reference-price

Australian Government Department of the Environment and Energy,
[C2]https://www.energy.gov.au/sites/default/files/price_safety_net_resources.pdf

[C3]According to average customer data provided by Thought World in May 2018. Figure based on previous customer data and could change on a customer to customer basis.

Australian Government Department of the Environment and Energy,
[C4]https://www.energy.gov.au/sites/default/files/price_safety_net_resources.pdf

This article is opinion only and should not be taken as medical or financial advice. Check with a financial professional before making any decisions.