Make time to change

THERE are few tasks in household life more frustrating than getting unsolicited cold calls from telemarketers and touts from power companies trying to sell you a better deal on your gas or electricity.

But shopping around with these same providers for a better deal might just be up there.

The problem is it is a necessary task, even if you have to spend hours waiting on hold for these suppliers to answer your questions.

“It is especially important that families or any large households put some time aside to review their electricity plan,” the spokesman for financial comparison site Canstar tells us on Page 7 today.

The introduction of the ‘default offer’ or ‘reference price’ system on July 1 was aimed at simplifying the energy market and preventing price gouging.

However, just five weeks since the changes came to effect, it’s being reported that they might be counter-productive.

Apparently consumers have not been told enough about how the new system works, and there is an ambiguity about the changes that is being exploited by the providers.

In many cases, usage charges are skyrocketing. Canstar has reported an eye-watering hike of 57 per cent under one scenario. But even the average increase of five per cent it quotes represents a massive blow to many customers, with estimates suggesting it would cost some families an extra $200 a year.

It’s not surprising the companies have found a way to beat the system. They operate in a market devoid of genuine competition, and in desperate need of reform.

They thrive because their services are essential, and the market is so complex and confusing the layperson struggles to identify a good deal from a bad one.

The companies know it’s in their interest for that confusion to remain, and it will be music to their ears that so few Aussies changed their provider this year, compared to last.

The best the customers can do is swot up on the system, and shop around, even if it is an incredibly frustrating task.