Why energy prices are going up despite July 1 changes
Just over two weeks ago, Aussies were introduced to a new set of energy prices, regulations and changes that would impact prices for many households.
And thanks to the new changes, many Aussies may be wondering wondering if they'll see a decrease on their regular/annual bills - so we talked to Mozo’s energy expert, Nathan Warne.
“The purpose for introducing the default market offer was to create a reference bill amount for discounts to be calculated from and it was designed to be a safety net for the Aussies stuck on uncompetitive plans - but that doesn’t mean it’s the best value plan on the market,” he said.
With that, we thought it was worth finding out how the annual default market offer (DMO) price stacks up against some of the cheapest market offers at the moment, so we crunched some numbers.
How the annual DMO price stacks up
And for the Aussies who weren’t rolled onto the DMO, Warne says it could be a matter beyond your household’s usage.
“There are a lot of components that go into the price of electricity and if your bill is expected to go up, it could be due to the retailer passing on distributor and other costs,” he explained.
“If you’re not happy with your retailer’s decision, it could be worth shopping around for a better deal.”
So to get your search off to an amazing start, we had a look in the Mozo database and selected a couple of great value energy plans.
Momentum Energy - Smile Power Flexi Online
If you’re over confusing discounts and just want a plan that’s easy to understand, then you should check out Momentum Energy and the Smile Power Flexi plan. This plan provides customers with great rates, with no discounts in sight. New customers will receive a $50 sign up bonus that will be credited to your account when you sign up online. There’s a GreenPower option and you might be happy to know that the Smile Power Flexi plan is 14% less than the reference price
Energy Locals - Member Promise 2020
- No exit fee or lock in contracts
- 6% less than the reference price
- Also available in QLD
Want to sign up to an energy plan you’ll know won’t change? Meet Energy Locals and its Member Promise 2020 plan. With this plan, Energy Locals promises to keep rates capped until 2020, so you won’t have to worry about experiencing bill shock for a while. This plan is available to Aussies in NSW and QLD, plus it’s 6% less than the reference price. And if you ever decide that the Member Promise 2020 plan isn’t right for you, you’ll be able to opt out with no hassle, as there are no exit fees.
Want more options? Head on over to our energy comparison tool!
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