Energy crisis sparks concern: Aussies worried about increasing energy bills
Almost half (44%) of Aussie are concerned about the increasing price of electricity
23 May 2022
- One-in-five Australians are worried they will be disconnected from the grid because they can’t afford further increases in energy bills
- Australian Energy Market Operator says wholesale electricity prices in the national energy market rose 141% in the first quarter compared to last year
- Almost half (44%) of Australians have experienced an increase in their energy bill in the past 12 months, with 18% noticing a significant increase
- Almost a quarter (23%) of Australians have never reviewed their energy bill, despite savings on offer for those who shop around
New research from Mozo.com.au has found that almost half (44%) of Australian households are concerned about the rising cost of energy, with 20% worried they will be disconnected from the grid because they can’t afford further increases in energy bills.
The finding comes as the Australian Energy Market Operator reported a 141% increase in wholesale electricity prices in the national energy market, jumping to $87 a megawatt per hour in the March quarter from $36 a megawatt per hour this time last year.
“From noticing an increase in the cost of your weekly grocery shop to painfully high petrol prices, Aussie wallets are being hit from all directions by the rising cost of living,” says Tom Godfrey, Mozo spokesperson.
“Now with the news that wholesale price hikes will be passed onto household energy bills, it is little wonder so many Aussies are concerned about keeping the lights on.”
Mozo's research also found that almost half (44%) of Aussies have already noticed an increase in their energy bill in the past 12 months, with 18% reporting a significant price jump.
When Mozo asked survey respondents how they will manage the rising cost of electricity, more than half (53%) said they will cut back on their usage of air conditioners and heaters, with 10% planning to not use them at all.
More than a third (36%) said they will cut back on usage of their clothes dryer, with 11% reporting that they will stop using it altogether.
“Taking the heat out of your power bills doesn’t stop at cutting back on your energy consumption, it's also important to regularly compare energy providers and see if you could get a better deal,” Godfrey says.
Shockingly, almost a quarter (23%) of Australians said they have never reviewed their energy provider, despite savings on offer for those who shop around.
The 2021 annual Mozo Expert Choice Awards analysis of energy plans found that residents in New South Wales, Victoria, Queensland, South Australia and the Australian Capital Territory have the opportunity to make significant energy savings.
The analysis found that by comparing providers and switching to the lowest-priced plan, an average household could save $455 per year off their electricity bill.
Mozo Energy Saving Tips:
- Insulate your home - Make sure your windows and doors are sealed tight to reduce heating or cooling escaping
- Set your washing machine to cold water - Using cold water costs significantly less than hot water
- Adjust the temperature - Remember that every one degree lower on your air conditioning can add 10% to the running costs, so try and keep your thermostat within 4 degrees of the outside temperature
- Turn off appliances at the wall - Idle appliances left on at the power board suck out a surprising amount of electricity. Try to turn off all appliances like kettles, video consoles and washing machines when they are not in use.
Notes: Mozo commissioned a nationally representative survey of 1,747 Australians conducted by Researcify between 10th April 2022 - 27th April 2022. The energy price data is extracted from the Energy Made Easy (NSW, QLD, ACT, SA) and Vic Energy Compare (VIC) sites, and has been used to develop our Mozo Experts Choice Awards Energy winners. For each plan assessed, we use three different usage scenarios (low, med, high) based on the average usage in those states, and perform some average and normalisation calculations. We then take the difference in cost between the least expensive plan, and average energy plan price, to determine a savings figure for each fuel type (electricity/gas) and state combination. Finally, we average the savings across the states for an overall average savings figure.