Aussies urged to snag savings on offer before summer heat takes hold

With BBQ season fast approaching, Aussies could snag hundreds of dollars in savings on energy, if they refuse to pay the loyalty tax.

5 December 2023

Woman saving money on energy by switching providers

Today, Mozo has released its Cost of Energy Report for 2023, revealing hundreds of dollars in potential savings for Aussies who choose not to pay the loyalty tax, and switch to a cheaper energy provider before the Summer heat takes hold.

"Electricity and gas prices have risen by 14% and 15% respectively since last year, which is a significant jump in cost for an expense you can't really live without," said Rachel Wastell, Mozo money expert.

“But consumers need to realise they have the power of choice. The key is to make sure you’re not paying the loyalty tax.” 

“If you’re in a state that has a competitive energy market, switching to a cheaper provider could save you hundreds of dollars a year.”

How much more are Aussies paying for energy?

Experts from analysed 2,438 energy products from 37 providers, as well as collating responses from more than 2,000 Australians to see just how much more households are paying for energy, and the potential savings on offer for those who switch to a cheaper provider.

The report showed Aussies are grappling with a whopping average quarterly increase of $130 for electricity ($520/year) and $97 for gas ($388/year )in the twelve months to September.

State by state, Northern Territory electricity prices increased the most, with residents claiming they are now paying $181 more every quarter or $724 more a year. 

South Australians saw the second biggest increase, with electricity prices jumping by $165 per quarter, equating to an extra $660/year.

When it came to the increase in gas prices, Victorians said they were paying $127 more every quarter, or $464 more a year, and residents of the Australian Capital Territory reported a jump of $93 a quarter, roughly a $568 annual increase.

What are the potential savings on offer for switching?

Graph showing potential savings by state

Mozo’s research revealed some interesting insights when looking at medium energy usage costs in Australian states that had competitive energy markets.

Among the states, the Australian Capital Territory had the highest average yearly savings on electricity, coming in at $648.

This was followed closely by South Australia boasting annual savings of $555 and Victoria with savings of $502 a year, on average.

South East Queensland residents experienced a comparatively lower average saving, but still substantial, at $420. New South Wales residents also saw potential savings in the hundreds, at an average of $369 a year.

There were also substantial savings on offer for gas plans. South East Queenslanders had the highest average savings of $414 a year, followed by New South Wales with annual savings of $283.

South Australia was next in line to save the most, at $271 a year, then Victoria with the potential to save $218 a year.