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The One Big Switch campaign could save Australian households hundreds. Picture: Supplied.
SAVINGS from shopping around for a better electricity deal have increased to as much as 30 per cent or $380 a year, a new official report reveals, yet the number of households switching is not growing.
The Australian Energy Market Commission 2016 Retail Competition Review finds Victorians can save this amount by switching from the median default tariff or “standing offer†to the cheapest discount deal. Some there could save even more, because the difference between the lowest and highest prices is $500 in Melbourne and the western half of the state; it is $600 in eastern regions, the AEMC’s analysis shows. In NSW, where there were widespread price rises of as much as 12 per cent on July 1, it’s possible to save 20 per cent.
Holly Walsh is considering changing electricity providers after her electricity provider Dodo Electricity hit her with an "incredibly high" increase in electricity costs. Picture: Tait schmaal.Source:News Limited
In South Australia — where there was a jump of as much as 15 per cent at the start of the new financial year — it is also possible to reduce costs by 18 per cent.
Southeast Queenslanders can lop 10 per cent from bills. Prices there went up by as much as 4 per cent on July 1.
Victorians did not have a midyear price hike. Their increases occur at the start of the calendar year.
The AEMC advised consumers to “shop regularly for an energy offer that suits their needs†saying the “benefits of doing so continue to increaseâ€.
However, News Corp Australia analysis of data from the Australian Energy Market Operator shows that nationally the number of customers who have changed providers is the same in 2016 as it was in 2015 and lower than it was in 2012 and 2013.
An AEMC survey shows the proportion of people shopping around is trending down in Victoria, NSW, SA and southeast Queensland. It is increasing in the ACT. Consumers in other states and the Northern Territory do not have the opportunity to switch because there is no competition in their markets.
Consumers have been advised to “shop regularly for an energy offer that suits their needs†as the “benefits of doing so continue to increaseâ€. Picture: SuppliedSource:ThinkStock
AEMC senior director Christopher Spangaro attributed the trends to “relatively stable retail prices†and providers doing more to retain customers.
“Price increases can trigger switching investigation,†Mr Spangaro said.
The official advocate for electricity customers, Energy Consumers Australia, said another explanation was that it may be too hard to change providers.
“Even in the face of savings of some hundred of dollars, people don’t seem to be following through,†said ECA CEO Rosemary Sinclair.
Joel Gibson of One Big Switch, which began a new Big Energy Switch campaign yesterday, said: “There was a big uptick in switching when the carbon tax came in and now that it’s gone, we’ve become a bit complacent.
“This month’s price rises (in NSW, South Australia and south-east Queensland) have put power prices back where they were during the carbon tax days, so the smart thing to do now is to shop around again,†Mr Gibson said.
The AEMC issued a warning to households that hadn’t switched recently.
“The benefits included in most market offers expire after one or two years, so there may be a significant number of customers who are on a market offer, but who no longer received the benefits initially attached to it,†it said, describing it as a significant concern.
The savings figures compare the cheapest deal with the default prices, known as “standing offersâ€.
About 10 per cent of Victorian households are on standing offers; well over a quarter are in NSW, about 15 per cent in SA and more than half of all Queensland households.
The AEMC did not respond to requests for comment on why the number of people switching was not increasing.
Meanwhile, thousands of Australians have joined the Big Energy Switch, which seeks the support of 40,000 households inside four weeks to help unlock group-discounted energy offers.
Go to www.onebigswitch.com.au for more information.
There is no obligation to take up any offer. News Corp Australia and One Big Switch will earn a commission from any accepted deals. News Corp is a shareholder of One Big Switch.