As the cost of living continues to rise, Australians are feeling the pinch, particularly when it comes to their energy bills. But did you know that with a bit of savvy shopping, you could potentially double the $300 energy rebate the government is offering? That’s right, there’s a money hack that could see you saving big on your electricity costs, and it’s all about timing and shopping around.
The Australian government has introduced a $300 energy bill rebate to help households manage the increasing cost of living. While this is a welcome relief, there’s an additional step you can take to maximise your savings: switch your energy provider. According to a report by the Australian Competition and Consumer Commission (ACCC), Australians are paying over $4 billion in what’s known as an ‘energy loyalty tax’ by not shopping around for a better electricity plan.
The ACCC’s findings are startling. Households that haven’t switched electricity plans in more than a year are paying an average of $238 more annually than those on newer offers. And if your plan is two or more years old, you could be overpaying by an average of $317. These figures suggest that by simply reviewing and switching your energy plan, you could more than double the government’s $300 rebate.
Taylor Blackburn, a personal finance expert from Finder, has highlighted the significant increases in energy prices over recent years. Blackburn’s own experience of being notified about a price hike in his energy plan – which would have cost him an additional $300 a year – underscores the importance of staying vigilant about your energy costs.
Finder’s research indicates a staggering $500 to $700 annual difference between the cheapest and most expensive plans in their database. Despite these potential savings, 85% of people with an energy plan do not regularly switch their provider. Some are content with their current service, while others find the process of switching too daunting or are unsure if they’ll truly save money.
However, with such substantial savings at stake, it’s worth taking the time to compare plans. Blackburn encourages Australians to review their recent bills, understand their consumption patterns, and consider lifestyle factors that impact energy use. When comparing plans, look at usage charges, daily supply charges, contract terms, and available discounts. Remember, the best deals often go to new customers, so if your current provider won’t match a better offer, it might be time to switch.
Most households will receive the $300 energy rebate as four $75 credits, applied each quarter starting in July 2024, with the final two rebates coming in January 1, 2025 and April 1, 2025. To find a cheaper energy plan, use government comparison sites like Energy Made Easy and Victorian Energy Compare for Victorian households. Additionally, electricity companies are required to inform you if there’s a cheaper plan available on your bill every three to four months.
Don’t hesitate to call your existing retailer and negotiate for a better deal. It’s your right as a consumer to seek out the best possible rates for your needs. And remember, the effort you put into finding a better energy plan could result in savings that go well beyond the government’s rebate.
Have you reviewed your energy plan recently or found a deal that helped reduce your costs? Feel free to share your experiences and tips in the comments below. Your insights could help others make informed choices and save on their energy bills!
Also read: How to save on electricity bills: Practical steps from the consumer watchdog
