Flick switch to new deal
WITH ENERGY PRICES GOING DOWN, THE POWER’S IN YOUR HANDS TO CHANGE PROVIDERS AND POCKET A DISCOUNT, SAY THE EXPERTS
Despite the squeeze on household finances in 2020, many Australians still don’t bother to review one of their most important costs — energy.
Financial comparison website Mozo’s spokeswoman Kirsty Lamont says with summer here it's important to assess your household energy bills as temperatures rise.
“We'll start to use our air conditioners more and for many households summer is an expensive time of year for energy bills,” she says.
“If you’re in a state where you can switch providers, the biggest saving you can make is by making sure you’re on the cheapest plan.
“Our research shows the average Australian can save over $500 a year by switching to a cheaper energy provider.”
New independent research commissioned by Discover Energy quizzed 1000 Australians and found:
47 per cent have never changed energy provider.
25 per cent have been with their retailer for more than 10 years.
31 per cent don’t know how much they are charged for energy.
76 per cent feel they pay too much for energy.
Over the past decade electricity prices have soared, but the Australian Energy Market Commission's 2019 report found this should change.
It has forecast charges trending down, resulting in savings of about $97 or 7 per cent in the period to 2022.
This forecasted drop is due to a reduction in wholesale, network and environmental costs.
Financial markets dealer Mark Flynn, 39, his wife Jenny and two children recently moved homes which prompted him to reassess their energy charges.
“We switched (retailers) a few months ago and rather than go with the big retailers, we needed to make a decision of who to go to,” he says. “We are saving almost 30 per cent off our bill.”
The family's energy costs for their two-bedroom apartment have fallen from about $700 to about $500 per quarter, which they’ve had to keep a close eye on with both Flynn and his wife working from home during the pandemic.
Discover Energy’s chief executive officer Anson Zhang says Australians should zoom in on their tariff — the price charged for energy use. “Then look at the discount you may have, such as a pay-on-time discount, guaranteed or payon-time discount,” he says.
Discover Energy offers energy deals in NSW, Queensland and SA and is expanding to Victoria and WA in the new year.
But depending on which location you are in and whether you can choose your energy provider, it’s important to look at the two important charges on your bill — supply and usage.
If a discount does apply, it’s important to understand if it’s just on the supply or usage or both.
“You should also check what offer the retailer gave you when you signed up to the account so you can compare your current bill,” Zhang says.
“The best thing you can do is get on the phone and talk to your retailer so they can explain the bill for you.”
He suggests reviewing your energy deal annually to ensure you’re getting a competitive deal. Every year every retailer will be updating their rate,” Zhang says.