Hidden cost of energy retailer loyalty

MORE than one-quarter of households have only ever been with one energy provider, potentially costing them hundreds of dollars a year, new reasearch shows.

Comparison website Finder.com.au found that 27 per cent of people had never switched, with Baby Boomers the most loyal customers.

However, almost 30 per cent of people had changed energy providers in the past two years, suggesting that surging electricity and gas costs were prompting many into action.

Finder.com.au energy specialist Graham Cooke said many plans were evergreen contracts that continually rolled over.

“If your plan is rolling over indefinitely, it can be easy to forget about it altogether ... but loyalty doesn’t always pay off when it comes to keeping the lights on,” he said.

Mr Cooke said people should understand that discounts did not always last.

“Once the discount expires, some energy retailers might actually swap you from your current offer to an often more expensive one,” he said.

Separate Finder.com.au analysis found that households could save up to $578 a year by switching their energy plan.

The survey of more than 2000 people found that one in 10 Australians had no idea when they last reviewed or modified their energy plan.

Origin Energy spokesman Stuart Osbourne said clients on standing offers – default government-regulated deals – with an energy retailer could save by switching to market offers, which often included discounts and lower rates.

“There is money to be saved for people who shop around, but customers should always check that they understand the conditions and make sure it’s the right deal for them,” he said.

Most states have a variety of energy retailers, but there is no electricity competition in Tasmania, regional Queensland, the Northern Territory and Western Australia.