Sydeny, Dec 30: Millions of Australian households could save over $300 annually on their energy bills simply by switching to better deals, according to the Australian Competition and Consumer Commission (ACCC). Despite recent falls in electricity prices, many customers are missing out on potential savings by sticking with outdated plans, the consumer watchdog has revealed.
The ACCC’s latest report found that customers who switched to more competitive energy plans saved an average of $317 annually, paying less than $1,800 per year. By contrast, those who remained on their existing plans for two or more years paid an average annual bill of nearly $2,200.
“If you haven’t changed electricity plans in the past 12 months, chances are you are paying more for your electricity than you need to,” said ACCC Commissioner Anna Brakey. The report emphasized that nearly half of electricity customers missed out on these savings by failing to shop around for a better deal.
Electricity prices fell by an average of 4% in the year leading up to August 2024, providing a slight relief for nearly 5 million Australian households and businesses on flat-rate plans. However, the savings were not fully realized by those who stuck with the same plan, missing out on the competitive offers available in the market.
Only one in four households reviewed their energy plans in the last year and benefited from switching. For those who made the switch, the average savings were significant, amounting to $317 a year.
The report also highlighted that approximately 2.6 million customers were still paying the same or higher rates than the regulator-set default offers, indicating a lack of awareness or action in taking advantage of better deals. The ACCC further found that in some states, only 20% of customers were on their retailer’s best offer, showing a significant gap in customer engagement with available options.
While the national energy market saw retail electricity supply costs rise by 25% in 2023-24, there are signs of improving competition, with more retailers entering the market for the first time since 2021. This increase in market competition has helped create opportunities for more attractive energy deals for consumers.
“The cheaper options have arisen as more companies compete to gain customers, with more retailers entering the market than leaving it for the first time since 2021,” said Brakey.
Government rebates have further helped reduce energy costs, contributing to a drop in inflation. In addition, a decrease in fuel prices across Australia’s capital cities in 2024 provided relief to consumers, with Perth continuing to offer the lowest prices.
“Government rebates, which were not included in the report, pulled energy prices down by a further fifth in the year to September,” Brakey noted.
Looking ahead, the Australian government has forecast continued downward pressure on both petrol and energy prices, which is expected to ease living costs for consumers in the coming year. The ACCC’s report underscores the importance of consumers actively engaging in the energy market to ensure they are not overpaying for their electricity.
“Take some time this holiday period to have a look on the Energy Made Easy or Victoria Energy Compare websites … [or] simply call [your] retailers to see if they have a better offer available,” Brakey recommended.
As electricity prices and competition continue to evolve, Australians are urged to review their energy plans to take advantage of potential savings.
