Energy bills: The household tool costing you $674 a year

By Ceyda Erem ·
keep-cool-summer

Love it or hate it, summer is right around the corner and for many households, that means daily ice blocks, weekly trips to the local pools and of course, switching on the air conditioner. 

But did you know that 40% of your annual energy bill comes from heating and cooling appliances? According to recent Mozo analysis, that translates to $674 a year! 

“This year we’ve spent more time indoors than ever before so it’s only natural our energy bills are reflecting a higher consumption rate. As we head into the warmer months it’s important to be aware of the running costs of your household,” said Mozo Director, Kirsty Lamont. 

“While cooling and heating accounts for the lion’s share of most energy bills, our devices and appliances also make a considerable debt, costing an average of $421.25 a year.”

Lamont also warned that when it comes to their heating and cooling tools, every setting counts. 

“It’s important to remember just how expensive running an air conditioner can be. Setting your thermostat to 18 degrees all summer could cost you. Simply by increasing the temperature by 4 degrees could decrease your air conditioning portion of your bill by 40%, that’s a saving of $270,” she said. 

Other ways households can reduce their energy bill this summer included:

  • sealing windows and doors to prevent cool air escaping 
  • washing clothes in cold water, as this costs significant less than hot water and 
  • keeping the thermostat on their air conditioning within 4 degrees of the outside temperature.

How to avoid a massive summer energy bill

It’s not all doom and gloom for households this summer though, as Mozo research found that Aussies could save $292 on their annual bill, just making the switch. 

In fact, Mozo’s recent Energy Report revealed there were considerable gaps between the cheapest and average electricity bill across the country, depending on the distribution zone. 

But finding the right energy plan for any household is no easy task, which is why every year, our expert judges analyse hundreds of plans for our annual Mozo Experts Choice Energy Awards. 

This year, our judges sifted through 662 products from 43 residential retailers to uncover this year’s winners. You can find out who took out the top spot by checking out our full winners list.  

Or if you’re looking for more energy savings tips for summer, head on over to our energy savings tips hub!

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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.