TIME TO SWITCH AND STOP THE BILL SHOCK EXCLUSIVE - JOHN ROLFE
THE cheapest electricity deal is now $500 pricier than a year ago.
However, more consumers are countering the cost surge by paying to be told when they could save by switching retailer.
This trend is gathering pace as new research for St Vincent de Paul reveals the lowest cost offer among all retailers for customers in Sydney and surrounds has soared to more than $2100 annually, based on 7200 kilowatt hours of usage.
In mid-2021, the least expensive plan on the market for such consumption was less than $1600.
That’s a leap of about 35 per cent, driven by rocketing wholesale energy prices.
In areas beyond the Blue Mountains, Southern Highlands, the Hunter Valley, Newcastle and Illawarra, where charges were already much higher, the jump has been more than $600, or about 31 per cent extra.
The analysis for Vinnies also shows the dominant retailers – EnergyAustralia, AGL and Origin – have put up prices by more than $500 in some cases and by more than $400 in many instances.
Vinnies policy and research executive manager Gavin Dufty said that while prices had shot up across the board, there were still substantial savings to be made by switching provider.
Mr Dufty said if you were with one of the big retailers, which about three quarters of households were, “you can halve the price increase by shopping around”.
He said it was critical that consumers remained “vigilant” so they did not end up paying too much.
Sydney dad Mike Cohen does not want to pay too much for the power his young family uses, but, like most people, he does not have the time or inclination to mount an ongoing price-surveillance operation.
“It’s something that you know you should do, but you don’t really look forward to it,” Mr Cohen, of Seaforth, said.
So he has outsourced it.
The Cohens pay a company called Bill Hero $49 annually to monitor the market for them.
As a result, they have changed retailer twice in the past three years, including earlier in 2022. That recent switch chopped 20 per cent off their charges.
“It’s a set and forget strategy,” Mr Cohen said. “For us, it’s definitely worth it. I think it would be for a lot of people.”
Bill Hero compares all offers, does not accept commissions and is endorsed by consumer group Choice.
Its chief executive Richard Foxworthy said the average saving on the first switch was $380 a year.
“We designed Bill Hero to hold retailers to account on every single bill cycle,” he said.“We are seeing a strong up-tick in interest.”
There's no single 'best' energy plan that will deliver optimal pricing year round. If you want to stay on the best prices, you need to keep checking. Bill Hero does all the work for you to keep on top of it
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