Aussie households could be missing out on $900 million in electricity bill savings
New figures from the Australian Competition and Consumer Commission (ACCC) have revealed that electricity prices have fallen by 9% since the middle of last year.
As a result, thousands of households across eastern and southern states now have the potential to collectively save $900 million by making the switch to a better offer.
According to ACCC Chair, Rod Sims the reason for the decline in prices was due to an increase in power generation, specifically renewable energy generation and falling fuel costs.
“There are two ways that households and small businesses can get the hip-pocket benefit of recent reductions in retailers’ costs: by changing to a new, cheaper plan; or, by waiting for their retailer to lower the rates on the plan that they’re already on,” he said.
Under a new law that was passed in June 2020, called the Prohibiting Energy Market Misconduct (PEMM) law, electricity retailers are now required to make adjustments to their pricing in line with the cost of them to obtain electricity.
And if you’ve been keeping up with energy market movements as of late, you’ll know that wholesale electricity prices have been on the decline since mid-2020.
“We also expect further significant price reductions from retailers over time, as the reductions in wholesale spot prices flow through to retailers’ contracting positions,” said Sims.
Victorians have the biggest potential savings of between $171 and $198 a year, as the state’s flat offer prices have reduced by 11% to 14%. This is followed by South-East Queensland ($126), South Australia ($118), New South Wales ($80 - $88) and the Australian Capital Territory ($46).
Although Sims explained the ACCC will be investigating as to whether electricity retailers are following PEMM law, he encouraged Aussies to shop around to secure further savings on their annual bill.
So if you think you could be getting a better deal on your electricity bill, why not take our energy comparison tool for a spin? It can help you compare some of the electricity plans available in your area.