How Victorians could save $2k on power bills
Does it seem like your power bills are hitting your hip pocket harder than before? It’s not just your imagination.
A new report from St Vincent de Paul^ has shown that for Victorian households, the average market offer electricity bill has jumped by $35 in the past 12 months, to a whopping $1,585. But the good news is with big power bills, comes the opportunity for big savings.
According to the report, a Victorian family using the average 4,800 kWh each year stand to save as much as $2,110 - $2,675 a year on their bills by switching from the worst standing offer available to the best market offer.
If you’re already on a market offer, it could be possible to save between $700 and $960 a year by switching from the worst to best offer.
“Switching your energy provider is a fairly simple process and can mean massive savings. It’s well worth the time to compare your options and see if there’s a better deal out there,” says Mozo Director Kirsty Lamont.
What’s the difference between a market offer and standing offer?
A little confused by what we mean when we talk about market offers and standing offers? No worries. Here’s a quick rundown of the difference between the two.
A market offer is set by your energy retailers, which usually means lower prices and the chance to score discounts and sign-up bonuses. The downside is that these offers can change at any time, so an offer that’s a good deal today may not be so hot in 6 months time.
Every energy retailer is obligated to have a standing offer available. The upside is that the price can’t change more than one every 6 months - giving you a little more certainty about your bills - but the downside is these plans can be more expensive and often don’t come with any discounts.
If your market offer expired, or if you haven’t switched your plan since the energy market was deregulated in 2002, you might have wound up on a standing offer without realising it, so it’s worth double checking your current plan and comparing electricity options to make sure you’re getting the best bang for your buck.
^Victorian Energy Prices July 2018 An Update report on the Victorian Tariff-Tracking Project, August 2018