How you can save money on electricity.

With electricity bills are expected to skyrocket in 2017 due to the closure of Victoria’s Hazelwood Power Station.

The latest Australian Energy Market Commission (AEMC) 2016 Residential electricity price trends released on Wednesday has warned of price increases across the nation.

South Australians will be hit the hardest, with $150 a year expected to be added onto household bills and Victorians will have to face paying an extra $99 while Queenslanders will pay an extra $28.

Other states could be whacked with a $78 price hike.

NSW residential electricity prices are expected to increase by 3.9 per cent on average for each of the next two years largely due to a 16 per cent increase in wholesale energy costs, AEMC chairman John Pierce said.

Electricity prices are also affected by the price for gas through gas-fired power stations, which is expected to play a larger role in the market in the future.

“Any future increase in the price of gas will result in higher input costs for generators, flowing through to higher costs in the wholesale electricity market,” said Mr Pierce.

The Council of Australian Governments energy council will meet in Melbourne on Wednesday to look at regulations around new interconnectors, and efforts to ensure cheaper gas supplies.

“Across the national electricity market the generation mix is changing — with the large-scale renewable energy target leading to substantial investment in wind generation. This is contributing to the closure of coal-fired plants and increasing wholesale prices,” said Mr Pierce in a statement.

But there’s an easy hack that could help you save hundreds a year.

Customer satisfaction company Canster Blue thinks moving from standard contracts to market contracts, even with the same electricity provider, is a simple way for households to save money.

Canstar Blue editor Simon Downes.Source:The Courier-Mail

A standard contract is ongoing and often has flexible billing options to help customers, but Canstar Blue’s Simon Downes said they did not provide discounts for customers. The terms in these types of contracts are set out by law.

However switching to a market contract could see electricity costs dramatically discounted for customers.

Market contracts are set out by electricity retailers, and have varying contract lengths and offer customers savings.

“There is understandably a perception that switching energy providers is a confusing and difficult thing to do, but our findings show that many households don’t even need to switch to save,” Mr Downes said.

“It’s simply a matter of calling your retailer and asking to be moved from their standard contract to market offering.

“The energy retailers won’t go out of their way to help customers switch from these old, expensive contracts to cheaper alternatives, so consumers need to be proactive. If you don’t ask, you won’t get.

“Also pick up the phone for your parents or grandparents, because the majority of customers on standard contracts are likely to be older people, or those who are simply unaware of what options are available to them.”

Savings for people living in NSW. Picture: SuppliedSource:Supplied

Savings for Victorian customers. Picture: SuppliedSource:Supplied

According to Canstar Blue, the Australian Energy Regulator showed one in four households in NSW and South East Queensland were still on standard contracts.

About 10 per cent of households in Victoria and 15 per cent of households in South Australia are also paying more than they have to.

Households in South East Queensland could save $285 a year by changing their contract and people in NSW could save as much as $400.

The savings are even better in South Australia and Victoria, where households can save more than $600.

But Canstar Blue said the savings were only possible if customers stuck by the conditions of market contracts.

Discounts are given to customers who pay on time, or by direct debit, but those who fail to pay bills will actually be slapped with more costs.

Canstar Blue found these costs could sometimes exceed the costs of standard contracts.

Queensland customers can save more than $200. Picture: SuppliedSource:Supplied

Savings for South Australian customers. Picture: SuppliedSource:Supplied

“It’s often the case that the energy plans with the highest discounts also have the highest usage rates, so you need to be aware that failing to meet the conditions will leave you paying a high price. Therefore, if you don’t have confidence that you’ll be able to meet the terms of your market contract, look for the plans with the cheapest rates, rather than those with the highest discounts,” Mr Downes said.

“It is possible that customers could switch from a standard contract to a market offer and be even worse off.

“It’s all about understanding what type of contract you’re on and making sure you meet the conditions. Many families struggle with the price of power, but there is an opportunity to save with minimal effort required.”

In NSW, AGL and EnergyAustralia customers who change contracts could save almost $400.

Origin customers could save almost $300 and those connected by Dodo Power and Gas could save more than $400.

AGL customers in Victoria could save $445, EnergyAustralia customers could save $520, and Dodo Power and Gas customers could save $605.

Origin could discount customers $460 if they changed over their contracts.

South Australians can save $344 if they’re with AGL, $669 with EnergyAustralia and $447 with Origin.

AGL and EnergyAustralia customers in Queensland could save more than $200 and Dodo Power and Gas and Origin customers could save just over $150.

— with AAP