EnergyAustralia’s 2018 price hike prompts Aussies to fix or switch their energy rate before summer

By Ceyda Erem ·

In 2018, Victoria’s third largest energy retailer, EnergyAustralia will be significantly raising their prices that will increase electricity bills by 14.9% and gas bills by 13.5%, according to the Herald Sun.

Coming into effect on 2 January, the price hike is likely to add an extra $278 to the average Aussie’s electricity bill and an additional $192 for gas.

Following a 29% bill increase in the past year, Victorian households will now have an extra $456 tacked onto their annual bill and face encouragement from EnergyAustralia to sign up to their Secure Saver plan - the provider’s promise to lock in usage and supply charges for two years.

However, while Victorians do have the option to freeze their energy rate, Mozo’s data has found that residents in the state have the biggest opportunity to save on their bills, all by making the switch.

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“Mozo calculated the average three person Victorian household can save $929 by switching from the average plan to the cheapest on the market. This means many households can actually offset their bill increase and still have savings to bank simply by making the switch to a cheaper energy plan,” said Mozo Director, Kirsty Lamont.

And with a rising number of Aussies tightening their budgets or locking in their energy rates, Lamont says switching providers before the January price hike is still the best way to score big savings for all states.  

“Fixing your energy rate might look like an attractive option to safeguard yourself against the sting of power prices rises, but customers could be shooting themselves in the foot if they push to fix without researching beforehand,” says Kirsty Lamont, Mozo Director.

“Our advice to customers is to wait for retailers to announce the price hikes before opting to fix and compare the market to see where the cheapest plans are.”

Mozo's tips on getting the best energy deal for your household 

Compare, compare, compare -  Before signing up to the first deal you see, take the time to shop around and compare plans in your area. Mozo’s Energy Cost Crunch calculator provides instant quotes and can help you save big on your energy bill.

Think long term - While you may grin with excitement at your newfound ‘$50 off your first bill’ discount, remember, this is a temporary feature. You need to think long term when it comes reducing your bill and that means skipping short term perks.

Read the fine print - It’s not unusual for a provider to offer discounts for paying on time or combining gas and electricity plans, however, you’ll need to be clear on what the discount applies to, for instance, usage charges or your total bill.  

Want to get ahead before the 2018 price hike? Mozo’s Energy Cost Crunch calculator instantly compares 278 electricity plans to find your household a great energy deal.

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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.