Your Energy Bill Could Be $238 Higher Than It Should Be—Here's How To Fix It

Millions of Australians missed out on even bigger savings by staying on the same flat-rate electricity plan for two years or more, despite receiving an average 4% discount over the past 12 months, consumer watchdog Australian Competition and Consumer Commission (ACCC), has revealed.

The ACCC is urging consumers to shop around or at least to contact their electricity provider to ask if a cheaper electricity plan is available, following a decline in retail electricity prices in 2024 that many households are not currently benefiting from.

More than 80% 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, ACCC added.

"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, said.

These households were paying an average of AU$2,200 a year on their energy bills, ACCC stated in its report. Nearly 2.6 million customers are paying the same or more than the default offers set by regulators, ACCC said in a report published on Monday.

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.

Households that switched plans in the last year saved an average of AU$317, which is about one-sixth of their energy bill, and paid less than AU$1,800 annually. However, only one in four households have made the change, ACCC pointed out, The Guardian reported.

The report also stated that between January and August, only one in five customers in Victoria, New South Wales, Queensland's southeast, and South Australia were on their retailer's best offer.

Brakey advised consumers to visit the Energy Made Easy or Victoria Energy Compare websites, or alternatively, contact their retailer to ask about better offers.

However, customers on demand offers had higher calculated annual prices, with 51 per cent of these customers on offers priced at or above the government safety net price. Customers on demand offers are not subject to the protections of the Default Market Offer.

Energy companies are required to inform customers about cheaper offers on their bills every three to four months. By reviewing these messages, consumers can take advantage of better deals and lower energy costs.

While the cost of supplying retail electricity rose by about 25% in 2023-24, the ACCC expects prices to stabilize or decrease in the coming year.

Government rebates, which weren't included in the report, helped lower prices by an additional 20% by September 2024. Together with a 6.3% drop in petrol prices, this led to the lowest inflation rate in over three years.

"The increasing complexity in pricing as the smart meter rollout continues, presents a real challenge to consumers who are trying to reduce their electricity bills," Ms Brakey said.

"While we are pleased that compared annual prices have decreased from 2023 to 2024 and more consumers are on offers below the government safety net price, a substantial proportion of households remain on prices above these levels," Ms Brakey said.

What Consumers Should Do To Save Energy Bills:

• 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).
• 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.
• Consumers should read their 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.