PEOPLE POWER

Referring a mate could earn you a $50 bonus from an energy provider, SPOTLIGHT ON ENERGY

HOUSEHOLDS trying to avoid soaring energy prices can make a quick buck by spreading the word they are on a good deal.

Many energy retailers are offering large discounts to lure in new customers, but there are other ways consumers can easily get cheaper bills.

Electricity and gas companies remain desperate for an increased slice of market share and this has prompted many to offer incentives to get new customers to sign up.

Energy comparison website Canstar Blue’s spokesman, Simon Downes, said an easy way to make a quick buck was to get a friend to sign up to the same retailer.

“If you’re getting a good energy deal, referring your friends is a no-brainer,” he said. “If you’ve done the hard work and found a plan worth telling others about, you’ll be doing your friends a favour, plus you’ll get a tidy bonus.”

Canstar Blue’s database found some retailers – including GloBird, Powershop, Momentum Energy, Click Energy and Red Energy – handed out customer bonuses if family and friends sign up.

In most cases, it resulted in both the existing customer and the new customer getting a $50 credit on their next bill. On other occasions, customers could receive a $50 gift card.

GloBird executive manager John McCluskey said since it was a smaller retailer, it relied on customers spreading the word.

“Before we introduced the referral program, just under 20 per cent of our customers came to us via word of mouth,” he said.

“Since introducing the program, that has risen to almost 24 per cent.”

But some retailers have limitations on referrals, including the number that can be made each month. Powershop chief executive officer Ed McManus said about 20 per cent of its customers had referred at least one friend, and they were rewarded with an energy discount. “A large number of customers have referred multiple mates, meaning they didn’t have to pay a bill for several months,” he said. “Powershop has given away the equivalent of about $4 million to customers through the Switch Your Mates program.”

But consumers should be wary that just signing up to a retailer to get a bonus was not always the most cost-effective option, Mr Downes said.

“It’s important not to get too distracted by incentives,” he said. “Power prices can change regularly, so make sure your friends are aware of what they’re getting into, especially if you’re referring them to a retailer that frequently changes prices.”