Energy prices in 2019 - what’s changed, who has the cheapest plan and how you can save on your electricity bill
Here at Mozo, we believe that no Aussie should be paying more than they have to on their energy bill. That’s why every year, our expert judges dive head first into hundreds of energy plans to find the ones that could help households save big on their bills.
For this year’s Mozo Experts Choice Awards, the Mozo expert judges analysed 585 products from 36 residential retailers and 456 products from 32 small business retailers, a job Mozo expert judge, Peter Marshall believes, is essential.
“Comparing energy prices has always left many Aussies feeling unsure of where to turn, so this year we left no stone unturned and uncovered the retailers and products we think Aussies should consider to power their home, taking the confusion out of who has the cheapest deal around,” said Mozo expert judge, Peter Marshall.
Our judges considered retailers available in New South Wales, Victoria, Queensland, South Australia and the Australian Capital Territory.
How much have energy prices changed between 2018 and 2019?
Within the last year, the energy market has gone through a number of changes in order to bring about a fairer, more transparent playing field. On 1 July 2019, the Australian Energy Regulator (AER) introduced the Default Market Offer (DMO) in NSW, QLD and SA to protect energy customers on standing offers from being stung with excessively high prices.
At the same time, the Victorian government also introduced the ‘Victorian Default Offer’ (VDO).
Confusing discounts started to disappear and retailers were forced to start using the ‘reference price’ to advertise market offers.
“Because of the regulation changes that came into effect, retailers no longer determine their own standing tariff and so we’ve seen the big discounts disappear. And the reference price now acts as a guide to what retailers can charge customers who don’t actively choose an energy plan,” said Mozo energy expert, Nathan Warne.
Who had the cheapest electricity plan in each state?
The question you’ve probably been dying for an answer to: what’s the cheapest electricity in my state?
To uncover the cheapest electricity plans in all considered states and territories, our Mozo Experts Choice Award judges performed calculations based on a set of customer scenarios by using industry benchmarks for annual usage in each state wherever possible.
The calculations were based on single rate tariffs and any guaranteed discounts or conditional discounts, such as for paying on time or paying online.
The cheapest electricity plan in NSW
In NSW, ReAmped Energy had the cheapest electricity plan at $1,557, based on an annual usage of 5,000 kWh.
Although ReAmped Energy is fairly new to the market, it certainly has made an impression on our expert judges and has taken out two 2019 Mozo Experts Choice Awards in the Electricity NSW and QLD category. ReAmped Energy want to make energy easy to understand and hassle-free, which is why instead of offering discounts, it treats its customers to honest, affordable prices.
The cheapest electricity plan in VIC
In Victoria, Elysian Energy had the cheapest electricity plan at $1,447, based on an annual usage of 5,262 kWh.
Elysian Energy is a start up retailer based in Melbourne who practise transparency with their energy plans. According to the retailer, there are ‘no gimmicks or tricks’, just low, honest prices. And it looks like that level of honesty has won the hearts of our expert judges, as not only has Elysian Energy won four 2019 Mozo Experts Choice Awards, it’s also walked away with the title of 2019 Mozo Experts Choice Victorian Electricity Retailer of the Year.
The cheapest electricity plan in QLD
In Queensland, Powerclub had the cheapest electricity plan at $1,465, based on an annual usage of 5,000 kWh.
Also new to the game, not-for-profit retailer, Powerclub, does things a little differently. Powerclub vows to never profit from a members usage and even promises to either return any excess profit back to members or reinvest it back into the company. Powerclub also gives its members access to wholesale prices, all of which might be why it received a whopping 16 2019 Mozo Experts Choice Awards, including the prestigious title of 2019 Mozo Experts Choice Award Electricity Retailer of the Year for NSW, SA and QLD.
The cheapest electricity plan in SA
In South Australia, Kogan Energy had the cheapest electricity plan at $1,946, based on an annual usage of 5,000 kWh.
Despite only officially entering the market at the start of September, Kogan Energy has already made its mark. As an expansion of Kogan.com, Kogan Energy have vowed to keep to their motto of delivering great prices, no matter the product you’re after. Kogan Energy was awarded a 2019 Mozo Experts Choice Award in the SA Electricity category.
The cheapest electricity plan in the ACT
In the ACT, ActewAGL had the cheapest electricity plan at $1,746, based on an annual usage of 7,000 kWh.
Kickstarting its energy journey in 2000 in the ACT, ActewAGL is an energy hybrid of AGL and ACTEW supplying electricity and gas in Canberra and parts of NSW. Big fans of solar, ActewAGL can help Aussie households join the renewable energy team by referring customers to its solar partner, Solarhub. ActewAGL picked up a 2019 Mozo Experts Choice Award in the ACT Electricity category.
The cheapest electricity plans across the country
Warne also mentioned that there was an ongoing theme of transparency across most of the ‘cheapest energy retailers’ across the country.
“One of the things you’ll notice about some of these retailers, like ReAmped Energy, Elysian Energy and Powerclub is that they offer very minimal or no discounts to keep things as clear as possible. They try to ensure that no cost or charge is left unexplained,” he said.
What are the potential savings for my annual energy bill?
With all the good news of energy prices decreasing, it makes sense to wonder whether or not that means Aussies can now save on their annual bill.
Our data team crunched the numbers on how much households across the country could save when comparing the average electricity plan price to the cheapest plan in every state, and found that switching to the best price in your state could save you up to $287.
Potential savings for the average energy bill
What makes up my energy bill?
It’s safe to say that many Aussies across the country focus on only one aspect of their energy bill: the price tag. And while switching to the cheapest energy plan in your state is the best way to save, knowing what actually makes up the amount on your electricity bill could also help you to reduce any future bills.
“Your energy bill is made up of two things: the daily supply charge and your usage charge. The daily supply charge is the price you pay to have electricity supplied to your home on a daily basis, so it’s not something you can control,” explained Warne.
“Your usage charge on the other hand is something you can control, because it’s the price you’re charged for the amount of electricity you use, so that comes down to reducing your energy consumption in any way you can.”
How can I reduce my energy bill?
So with that thought, we decided to jot down a few energy savings tips that can help Aussie households get through the approaching warmer weather.
Opt for a portable fan - If you’re only looking to cool yourself down, try using a portable fan instead of the aircon. Unlike your much-loved aircon, fans use a lot less electricity which can help bring down the cost of your bill.
Switch to cotton sheets - One of the more gruelling parts of summer is trying to get a good night's sleep when your bedroom feels like a sauna. During the warmer months, switch to more breathable bed sheets, like cotton or bamboo. These are great sweat-wicking materials that can help you stay cool and collected.
Clean your aircon - When was the last time you gave the inside of your aircon a good clean? If it’s been a while, then there’s the chance that your aircon might be working harder than it needs to and is using up more electricity in the process.
Open windows at night - While it can be tempting to leave the aircon on while you snooze, it can jack up your electricity bill in the long run. Luckily, once the sun goes down, things tend to cool of, so why not use it to your advantage by keeping your windows wide open all night long.
Stay shady - Unless you’re soaking up rays at the beach, no one wants to sit under the sun. Make the effort to block out the sun in your home during those summer days by closing all the windows and drawing the curtains and blinds.
Switch energy plans - Last but certainly not least, if you really want to make a difference to your energy bill it could be worth switching to a better value electricity plan before summer!
About the Mozo Experts Choice Awards
Every year, our expert judges dive headfirst into the Mozo database to uncover the financial products and providers that deliver exceptional value and quality to its customers. Our Mozo Experts Choice Awards cover a wide range of financial products from home loans to energy plans.
So if you’re curious to find out what switching retailers could mean for your annual bill, then why not make the switch today with one of our 2019 Mozo Experts Choice Energy Award winners.
^See information about the Mozo Experts Choice Energy Awards
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