Energy bills rise by 29% - a reminder to switch before summer

By Ceyda Erem ·

According to recent analysis by Mozo, Aussie households are paying up to 29% more for electricity than this time last year.

The data found that Victorians had it the toughest and are forking out an extra $457 on their annual bill, while Aussies in New South Wales and South Australia saw an increase by 18%, with Queenslanders experiencing a minor blow of just 5%.

And as Aussies prepare for another bill shock over the summer, there’s never been a better time to switch, as Mozo found that energy switching savings have more than doubled in the last 12 months with savings of up to $929!

Potential annual savings made by switching energy providers

October 2017October 2016
StateAnnual savingAnnual saving
VIC$929$339
SA$737$331
QLD$532$172
NSW$481$330

Source: Mozo.com.au as at 19 October 2017

RELATED: 7 energy retailers join the Queensland Premier’s Affordable Energy Pledge

“Mozo’s analysis shows the annual savings the average household can make by switching to the cheapest energy plan in the market have increased significantly over the past 12 months. This goes to show that even if you switched energy providers this time last year, there is a good chance that there is an even better deal out there,” said Mozo Director, Kirsty Lamont.

But despite the mindblowing savings on offer, Mozo found that Aussies were three times more likely to reduce their energy usage, than switch to a cheaper, better value plan.

“Don’t resign yourself to shocking energy prices. Our research shows that many households can actually offset their bill increase and still have savings to bank by switching to a cheaper energy plan,” says Lamont.

And while the country is set to sweat in just a few months, Aussies still have time to reap the benefits of great plan by switching.

Mozo's tips to finding a great energy deal

Remember the bigger picture - Don’t get sucked into introductory discounts like, ‘$50 off your first bill’ or ‘sign up bonuses’ - you’re looking to cut your energy bill over a year, not to score temporary perks.

Think about how you use your energy - If you’ve got a large home that constantly runs a pool in the backyard, a discount off your usage could help you save in the long run, while a smaller household with little energy use may benefit from a supply charge discount.

Consider fixed energy plans - Many providers offer guarantees to not raise prices for a certain period of time or at all. For example, Energy Locals have a genuine promise to not raise their prices for the benefit of profit.

Know you can meet the criteria - While getting a discount for paying on time sounds great, you’ll need to ensure that you will be able to do this each time you get your bill. Otherwise, you may be charged a higher rate than anticipated.

Ready to make the switch to a better value energy plan? Check out Mozo’s Energy Cost Cruncher.

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Ceyda Erem
Ceyda Erem
Money writer

Ceyda Erem is Mozo’s authority on Energy, as well as having broader expertise as a personal finance writer. She loves to put her researching and writing talents into stories that help our readers to make more informed financial choices, whether that’s about finding the best energy deal or writing about the latest sneaky bank tricks. Ceyda has a Bachelor of Arts (major in writing) from Macquarie University.