Remove any power price rise pain

HOUSEHOLDS burdened by rising energy prices are easily confused when trying to work out whether they are getting a good deal.

Price hikes this year to both electricity and gas by up to 20 per cent in some states have added an extra $ 600 to some customers’ bills.

But new analysis by financial comparison website Mozo has revealed more fixed- rate energy plans – similar to fixed- rate home loans – are trickling onto the market and retailers argue these offers will save customers cash and prevent them being hit by imminent price hikes.

But Mozo spokeswoman Kirsty Lamont said “energy retailers are scared” customers are going to go elsewhere for a cheaper deal, so like fixed- rate deals that lock them in and ensure they don’t jump ship.

“If you are feeling the strain of big household bills and you feel another energy price hike could push your finances closer to the red then taking up a fixed- rate offer could be a good way to manage the cost and to lock in some protection and peace of mind,’’ she said.

“But you do need to ask yourself the question, are you giving up the chance of getting a cheaper deal elsewhere?”

Most fixed deals protect customers from rate increases, but also prevent the benefit from any rate decreases.

Paying on time and setting up direct debit charges will also help customers save on energy.

Ms Lamont urged customers to avoid staying on “standing offer” deals – these are often more expensive because they don’t usually offer any discounts on usage that new customers are typically offered.

Customers often end up on these if they fail to review their energy contract, while others take up market offers, which are often cheaper.

Mother- of- two Alyson Kett recently purchased a three- bedroom home in Sydney and said it prompted her to review energy costs and choose a two- year fixed plan.

“Depending on the time of year we pay about $ 450 per quarter for electricity so we decided to lock in a new energy plan,’’ she said.

“You know exactly what’s going to happen with your bill, you don’t need to worry about rises and you can budget nice and easily.”

Energy Australia’s chief customer officer Kim Clarke said they recently rolled out their “Secure Saver” deal in Victoria, NSW and Qld, allowing customers to fix energy usage rates and daily supply charges for two years.

“No one should be paying a cent more for energy than they have to,’’ she said.

“When you’re shopping around there are two key numbers you need to know ... the first is your daily supply fee and the second is how much you’re charged for each kilowatt hour of electricity you use post discount – a good retailer will help you find them on your bill.”

But she warned customers not to get sucked in by headline discounts, which can be misleading and result in the customer paying more.