Aussies have a lot to say when it comes to energy. You could almost say for two people, there are three opinions! But one thing that most of us can agree on: energy prices in Australia are too expensive. That’s why it pays to compare energy plans.
Research published by News.com.au found that over a million Aussies were having trouble meeting their power bills in 2020. Energy is one of the biggest cost-of-living expenses for Australian households at the best of times; the dire economic straits many Aussies have found themselves in due to COVID-19 has only worsened the situation.
Both the Department of Industry, Science, Energy and Resources and the Australian Energy Regulator finds that consumers can save hundreds of dollars a year when they compare energy plans. Your savings will depend on factors like:
- The number of people in your household
- The state/territory in which you live
- Whether you have rooftop solar panels
- When you use most of your power.
- Discounts, penalties for late fees, etc.
For example, let’s start with your electricity bill. Consumers who have been with the same provider for many years are often on “standing offers”. This is a Government-set price cap: the maximum that your energy provider can charge per kilowatt-hour. Fortunately, less than 20% of Aussies in deregulated electricity markets are still on standing offers; but if Nanna hasn’t talked to her power company since 1993, there’s a good chance she’s one of that ~20%.
Other consumers are on “default market offers”, the maximum rate that your provider can charge for your plan. Because the market is increasingly competitive, electricity providers often offer a time-limited discount (for example, 1 or 2 years). This motivates customers to sign up; once it expires, they return to the more expensive default market offer.
Ankit Jain, CEO of energy price comparison website Econnex, recommends comparing energy plans “every two years, for many reasons. The energy market is changing at a break-neck pace. What seemed like the best deal two years ago may not be the best deal for you now. Too many Australian homes are dealing with bill shock and unaffordable contracts, but the power is increasingly in the consumers’ hands.”
“Econnex’s services have already been used by many Australians to analyze energy plans. We aim to disrupt an unaffordable national energy market, by helping Australian consumers to explore options at a glance. With so many consumers overpaying for power, there’s a strong economic case for comparing energy plans; we’re proud to be making that easier.”
Econnex also offers users easy-to-understand information about the main conditions of the contract offer; for example, supply charges, usage charges, solar feed-in tariffs, and so on. They also offer consumers the opportunity to switch providers without leaving the website; consumers can authorise Econnex to begin the transfer process on their behalf.
Want to find out more information about Econnex? Visit econnex.com.au to get the best deal on energy plan compare.