Energy concessions could save Aussie households up to $480 a year
Low income Aussie households who qualify for and seek out energy concessions could save hundreds of dollars every year, an Australian Energy Regulator report has found.
The Annual Report on the Performance of the Retail Energy Market 2015-16, analysed the energy market in Australia, including the state of customer service and complaints, the number of disconnections and reconnections, household debt levels and energy affordability.
Taking into account different energy usage and the differences in availability across states, the report found that ACT households paid the lowest average electricity bill, at just $1,004 with the low income concession. However, they also have one of the lowest value concessions, saving them just $199 a year.
Household electricity costs 2015-16
|Energy use||Ave. electricity bill without concession||Ave. electricity bill with concession||Difference||As a % of household income (with concession)|
*Annual figures based on a low income household, with the median market electricity offer.
At the other end of the scale, Tasmanian households paid close to $1,500 per year even with what the report termed “one of the most significant electricity concessions” around.
Many factors play a part in the different costs between states, including distribution services, energy consumption and household size. The report recognised that Tasmania’s high bills weren’t surprising, considering that “electricity is the predominant source of fuel in Tasmania and its cool-to-cold climate generates high demand for electricity for heating.”
The difference in energy consumption accounts for the fact that while Tasmania has the highest bills, South Australian households are still paying the highest electricity prices per kWh.
The report encouraged low income households to check to, “ensure they are receiving any energy concession they may be eligible to receive.” But energy concessions are not the only way households can save on their electricity bill.
“The state-by-state analysis in our report continues to highlight how many households can improve the affordability of their energy bills simply by checking to see if their own, or another retailer, can offer them a better price,” the report noted.
In fact, Mozo confirmed that the average Sydney home with a medium energy consumption of 17 kWh per day, could save $656 each year by switching from the most expensive electricity plan in our database to the best value plan.
If you want to find out how much you could be saving on your electricity bill, check out our new and improved energy plan comparison tool.