The Gold Coast Bulletin

Challenge the myths of power

Don’t feel daunted by finding cheaper power, it’s probably not as hard as you think, writes

- Tim McIntyre

AUSTRALIAN­S should overcome their misconcept­ions and switch energy providers for a better deal, one consumer finance expert says, as power prices continued rising.

The Australian Competitio­n and Consumer Commission (ACCC) recently declared there is unacceptab­le pressure on household budgets after residentia­l prices increased by 63 per cent in the last decade, with some families forced to sacrifice food or medicine to keep their power on.

Canstar Blue spokesman Simon Downes said Australian­s can switch energy providers to save money, but many are being held back by misgivings.

“It really doesn’t have to be this way,” Mr Downes said. “There are many common misconcept­ions about switching that could be preventing you from getting a much better deal.”

THE INSTALLATI­ON HASSLE

Many mistakenly believe switching power companies means a new provider will have to send an engineer to install a replacemen­t meter,

Mr Downes said.

“Your electricit­y comes straight from the national energy grid, no matter which provider sends you the bills,” he said. “The only person who will visit your property is the meter reader, to take a final reading so your old supplier can send you a final bill. Some energy retailers offer to upgrade your old meter if you switch to them.”

WILL THE POWER GO OFF?

Power does not need to be disconnect­ed at any stage to facilitate a switch.

“Your new retailer will take over your account, charge you its own rates and send you the bills,” Mr Downes said. “Your home will still be powered in the same way, but any changes in your tariff structure could mean you are charged for your power in a different way to before.”

I’M UNDER CONTRACT

Energy deals are contracts in a technical sense, but can easily be broken.

“The worst case scenario is you’ll have to pay an exit fee to cancel the contract – but this is usually only around $20,” Mr Downes said. “If you’re switching to a better deal, this cost will quickly be recovered … exit fees are actually becoming less common, so most of the time switching won’t cost you.”

I RENT, SO HAVE NO SAY

“If it’s your name on the account and you pay the bills, you have every right to switch, especially if you think you can get a bigger deal,” Mr Downes said, adding the only exceptions were if the landlord pays the bills as per the rental agreement, or if the home is part of an embedded network; for example an apartment block where all properties are supplied by the same company.

THEY’RE ALL AS BAD AS EACH OTHER

“You may be surprised by just how different power companies can be, especially when it comes to rates,” Mr Downes said.

“Over the course of a year, you could end up paying more GIFT-WRAPPED: Aimee Iannone doesn’t trust her husband Frank when it comes to Christmas shopping, so does it all herself. than $1800 more than you need to if you’re getting a bad deal.”

THE WHOLE THING IS TOO MUCH HASSLE

“Switching energy providers doesn’t have to be a hassle. You can switch online in as little as five minutes,” Mr Downes said.

“However, it’s really important to do your research first, which means comparing different providers, plans and price fact sheets to ensure you know everything about your prospectiv­e energy deal, including things like conditiona­l discounts, fees and charges.

“Once you’ve made up your mind, it only takes a few minutes to go ahead and make the switch.”

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