Sick of high energy bills? Aussies willing to change providers could be saving over $1,000 a year
Flipping off the light switch might seem like the best way to reduce energy bills, but a new study has revealed that Australian households are missing out on huge power bill savings by not making the switch to better value energy providers.
The survey of over 1,000 households conducted by Mozo found that when faced with rising power prices Australians were much more likely to cut back on their energy use (42%) rather than switch to a cheaper energy plan (13%) - this despite far greater savings on offer (up to $1,086 each year) for switching providers.
“Turning down the heating or forgoing the electric blanket on some nights is bound to save you some money on your household energy bill but the biggest savings will be accessed by switching to a better value plan,” said Mozo Director Kirsty Lamont.
“Our analysis found that a typical 3 person household could save up to $1,086 on their electricity bill each year by switching from the highest priced plan to the most competitive on the market.”
Victorians, who had some of the highest annual energy bills, were found to have the largest potential for power savings if they made the switch to the cheapest energy plan on the market, with savings up to $1,770 on offer.
This was followed by residents of New South Wales who were found to be able to save as much as $1,001 on their yearly bills if they were to make the switch.
With energy prices rises having taken effect in parts of the country on July 1, the study found that South Australians were most concerned about the impact of the hikes - a fact that is unsurprising given the state will be hardest hit with hikes of up to 19.9%, or the equivalent of $390 a year extra on their bills.
More than 60% of Aussies surveyed said they were concerned about the July 1 price hikes, with the survey finding that aside from cutting down their energy use or switching providers households were also prepared to haggle with their providers for a better deal or cut their spending in other areas.
“Energy bills are one of the biggest household expenses after mortgage repayments and rent and with the ‘Big 3’ having already announced double digit price increases in some states, it’s hardly surprising that many households are worried about how they’re going to stretch their budget to cover these higher costs,” said Lamont.
“Despite the high levels of concern among households, when asked how they are going to deal with higher energy bills, alarmingly almost 10 per cent said that they didn’t know.”
Why making the switch to a new provider is a breeze
There are a lot of misconceptions when it comes to making the switch to a new energy provider, so read on as we bust four of the most common myths:
1. Won’t I be billed twice? No, you won’t. If you decide to make the move from one provider to another the transition will basically be seamless. The switch will only take place when you’ve finished your most recent bill cycle with your old provider (depending on if you get billed monthly or quarterly), so you’ll be all settled up with your old provider by the time the new one kicks in.
2. Comparing discounts and rates is too hard. Not anymore! The days are gone when you had to open up 20 different tabs or print off offers from every single provider in your state to work out what kind of deal you were getting. Simply head on over to the Mozo energy comparison calculator, plug in your postcode, the number of people in your household and your daily usage and we’ll give you a list of the best deals in your area complete with discounts!
3. Won’t my power and gas be turned off if I switch? Absolutely not. Much like your bill transition the actual swap from one provider to another will be completely smooth, so your power supply won’t be impacted when the switch occurs.
4. Won’t I have to be home when they make the switch? Relax, you won’t need to take any time off work or spend hours at home waiting for a technician to come out. In fact your old and new provider will make the switch completely online, so you won’t notice the change at all.