What can you do to reduce your energy bill?
Aussies have endured a winter of dropping temperatures and rising energy costs, making the decision to turn on the heater more complicated than ever.
After growing discontent over soaring energy prices, PM Malcolm Turnbull and his senior ministers met with the heads of major energy providers on Wednesday in an attempt to lower the average household power bill.
The talks resulted in a commitment from eight energy companies - Energy Australia, Momentum Energy, Simply Energy, Alinta Energy, Origin Energy, AGL, Australian Energy Council and Snowy Hydro - to keep their customers informed on the state of their current energy plans.
“They will be required, when a customer is coming to the end of their discounted plan or a benefit plan, to write to them and say: ‘You are coming to the end of this plan. If you don’t do anything, you will go back onto the standard rate. Based on your past consumption, that would mean you would be paying ‘X’ dollars more. Here are some alternatives’,” said Mr Turnbull.
Aussies often find themselves paying pricey energy bills after their more attractive deals have expired and Treasurer, Scott Morrison estimates that in excess of a million Australians are on these expensive, default plans when they shouldn’t be.
“Complexity and inertia are the big energy companies’ friend. We’re ensuring that there is less complexity, and working on this inertia issue,” said Morrison.
And the “inertia issue” is certainly a problem. According to a Mozo survey, while we’ve grown disgruntled with our energy providers, Aussie consumers have remained pretty loyal and are more likely to tone down their energy consumption rather than seek out a better deal.
42% of respondents would trim their energy consumption opposed to the measly 13% who were open to seeking out better value energy providers - a mistake that is costing households an average of $1,086 per year.
“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.
The PM’s recently-forged commitment is said to affect approximately 8 million Aussie consumers. But if you’re not a customer of the aforementioned companies you could still make savings by switching providers.
Check out Mozo’s Compare & Save energy tool to find the best value energy plan for you.
Mozo’s simple energy saving tips:
- Use less energy - an obvious one, but updating to more energy efficient appliances could save you in the long run.
- Don’t overheat your home - it might be tempting to crank the heat to a high temperature but slowly heating your home and keeping the thermostat steady will keep energy use low and savings high.
- Insulate your home - keeping the warmth inside your home will reduce the amount of time you need to spend heating it.
For more tips and ways to save head to our energy savings tips hub.