December 30th 2024.
The organization responsible for protecting consumers is reminding Australians to explore their options when it comes to choosing the best electricity plan for their needs. According to their recent report, a whopping 80% of households in the National Electricity Network could potentially save money by either switching plans or simply contacting their current provider. Despite a decrease in retail electricity prices from 2023 to 2024, many households are still paying more than they should be. This is often due to being on plans that are above the government's safety net price, which is the amount charged to consumers who have not actively sought out better deals.
ACCC Commissioner Anna Brakey stresses the importance of regularly checking and updating your electricity plan. "If you haven't changed plans in the last 12 months, there's a good chance you're overpaying," she says. The report also reveals that households with plans that are over a year old are paying an average of $238 more per year than those with newer plans. To make the process easier, Brakey suggests using websites like Energy Made Easy or Victoria Energy Compare to compare plans, or simply contacting your retailer directly. "We know that customers who haven't done this in a while are probably paying too much," she adds.
It's also crucial for consumers to carefully read their electricity bills when they arrive. Brakey explains that every few months, companies are required to inform customers if there is a cheaper plan available. If you receive this message, it means you could be saving money by switching to a different plan. However, with the retail electricity market becoming increasingly complex, with more customers on time-of-use or demand tariffs, it can be challenging for some to navigate the various pricing elements. The report found that customers on time-of-use offers generally have lower annual prices than those on flat rate offers. On the other hand, customers on demand offers tend to have higher annual prices, with over half of them currently paying at or above the government's safety net price. It's worth noting that these customers are not afforded the same protections as those on the Default Market Offer.
Brakey acknowledges that the growing complexity of pricing, particularly with the rollout of smart meters, can make it difficult for consumers to save on their electricity bills. Despite the decrease in average annual prices and the increase in customers on plans below the government's safety net price, there is still a significant number of households paying more than necessary. In conclusion, Brakey encourages everyone to download the 9NEWS app to stay updated on the latest news, including breaking news, sports, politics, and weather. The app also allows users to receive notifications directly on their smartphone, making it easier to stay informed. It is available for download on both the Apple App Store and Google Play.
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