After being hit with the biggest power price hikes in living memory, Australians are fighting back and switching energy providers in record numbers.
Official switching data shows we broke our own records in July and August, with more than 450,000 homes changing providers in search of a cheaper deal.
Victorians are the biggest switchers, with over 90,000 each month, followed by NSW, south-east Queensland and South Australia.
It's great news and it shows the word is getting out on how to beat at least some of these shocking price increases.
The winter power price hikes averaged around 25 per cent from Queensland all the way down and around to South Australia and added around $500 to a typical household budget, plus more for gas.
Not even the carbon tax in 2012 hit households like that: it was only a 10 per cent tax on top of an annual 10 per cent price rise, making for a total of 20 per cent extra.
Unfortunately, more than a million people could still be paying hundreds or even $1000 more for their electricity than they should be.
Make sure you're not one of these one million people
The ACCC warned in July that over a million of us were paying above the Government Reference Price for electricity.
The reference price was introduced in 2019 as a "fair price" for a typical household, to be set by government regulators.
It's a sort of price cap because every provider has to have a "standing offer" equal to that price.
But, unfortunately, it was set up as a "soft cap" - retailers can put you on a plan above that fair price as long as they notify you in writing.
So a million-plus people have been moved to plans that are above the cap without realising they have a right to pay the cap and no more - and, in fact, they can still pay hundreds of dollars less than the cap if they know how to find a cheaper plan.
I posted a TikTok video warning about this in July and it's since been seen by over 700,000 people with over 1300 comments - including some where people say they've saved over $1000 by switching.
How much can you save by switching?
They look at this question each year and since the big July price hikes they've found some astonishing numbers in NSW, South Australia and south-east Queensland:
Typical households can now save up to $950 a year in NSW, up to $635 in south-east Queensland and up to $1220 in South Australia by switching to the cheapest market offers.
A typical household electricity bill is now as high as $3285 in NSW, $2820 in south-east Queensland and $2925 in South Australia.
In the worst-hit areas such as Goulburn, Boorowa, Yass and Young in NSW, the combined electricity and gas bill went up by an average of $775.
What can you do to pay as little as possible?
There are potentially four things you can do, if possible:
- Get onto a cheaper plan
- Go solar
- Use less
- Claim government rebates and concessions
There are a few places to find the cheapest electricity plans and you can switch to them within minutes.
Start with the government websites energymadeeasy.gov.au (for NSW, SA, ACT and south-east Queensland) or compare.energy.vic.gov.au (for Victoria - currently offering a $250 bonus just for visiting the site).
Some retailers are currently offering upfront credits for switching as well as pricing below government reference prices.
There are also some plans that are available via rewards programs (such as Flybuys and Everyday Rewards), membership organisations (such as RACV and NRMA), cashback websites (such as Cashrewards) and consumer groups (such as One Big Switch, where I also work).
Note that switching is not possible in northern Queensland, Western Australia and the Northern Territory - and there are minimal choices in Tasmania.
The government website energy.gov.au contains info on just about every rebate and concession available, including billions of dollars in new assistance since July, plus tips on how to use less.
I've made a list here of 101 ways to use less if you think you've tried everything.
For solar tips, the not-for-profit SunSpot has created a free solar and battery calculator here and I've made a go-solar checklist here.
Choosing an installer can be difficult but ideally, you want to find someone who is likely to be around in five to 10 years if you have any issues, so look for a reputable person accredited by the Clean Energy Council, with a track record who comes well-recommended.
Joel Gibson is the author of EASY MONEY and a regular commentator on TODAY, 2GB & 4BC. He also posts daily money-saving tips on TikTok & Instagram
