When was the last time you reviewed or changed your electricity plan?
Consumers are being urged to shop around or at least to contact their electricity provider to ask if a cheaper electricity plan is available, following a price drop in 2024 that many households are not currently benefiting from.
The ACCC’s latest electricity inquiry report has found that more than 80 per cent of Australian households in the National Electricity Network (NEM) could move to a cheaper electricity plan if they shopped around or contacted their electricity provider.
Despite the price of electricity falling between 1 August 2023 to 1 August 2024, many households remain on offers priced above the government safety net price meaning they are missing out on lower prices.
The government safety net price is the price consumers are charged if they have never shopped around for another price. They also serve as reference prices to make it easier to compare plans in the market.
“If you haven’t changed electricity plans in the past 12 months, chances are you are paying more for your electricity than you need to,” ACCC Commissioner Anna Brakey warned.
The report found that households on offers which are more than a year old are paying $238 more per year than households on newer offers. It also found that the size of this ‘loyalty penalty’ increases with the age of the offer (when examining three years of flat rate offer prices).
“We are urging Australians to take some time this holiday period to have a look on the Energy Made Easy or Victoria Energy Compare websites to see if there is a better plan”, Brakey said.
“Alternatively, people could simply call their retailers to see if they have a better offer available. We know that customers that haven’t done this in a while are probably paying too much.”
“Further, it is important to read your electricity bill when it comes. Every three to four months, electricity companies are required to tell you on your bill if a cheaper plan is available”, she added.
“If you get this message, you are paying more than you need to,”
Consumers should compare their current rates on the government comparison sites www.energymadeeasy.gov.au (for consumers in New South Wales, South Australia, Tasmania, the Australian Capital Territory and Queensland), and compare.energy.vic.gov.au (for consumers in Victoria).
The ACCC suggests that if customers don’t want to or can’t shop around, they can call their existing retailer and ask for a better deal. Their retailer is legally required to provide that information, as well as information on how the price compares to the government safety net price.
Read the electricity bills, because the retailer is required to let them know, every 100 days (or every 4 months in Victoria) through a statement on their bill, if a better deal is available.
Customers should also check with their retailer or on energy.gov.au/rebates, to ensure they are receiving all eligible concessions and rebates available to concession card holders.
The full report, which also covers information about electricity retailers’ costs of supply and margins in 2023–24, is available at Inquiry into the ‘National Electricity Market Report - December 2024’.