Whether you should switch now or wait until after the 1 July price changes depends on a few key factors. Here's a detailed breakdown to help guide your decision.
The 1 July price change is coming - should I switch or should I wait?
Whether you should switch now or wait until after the 1 July price changes depends on a few key factors. Here's a detailed breakdown to help guide your decision.
There is a market-wide retail electricity price change effective from 1 July every year, which results in price changes to nearly every plan from every retailer. With the July 1 price change just around the corner, it's easy to think that it makes sense to wait until the dust has settled before deciding whether to switch.
However, if you're already being overcharged, waiting for the price change to take effect only benefits your retailer, allowing them to continue overcharging you for even longer.
If you're on a competitive plan, then it makes more sense to sit tight and see what the new market conditions will bring.
Either way, Bill Hero has your back and will let you know exactly what savings are available to you in the market.
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Visibility of New Pricing: We've already seen Default Offer pricing released - guess what, it will mean price increases - which sets the tone more generally for Market Offer pricing. Retailers will release their new plans by early July to reflect regulated changes. Waiting allows consumers to compare all up-to-date pricing.
Avoid Repeat Switching: If you switch now and your new retailer then hikes their prices post-July, you might find you've made the wrong move and need to switch again.
Disadvantages
Opportunity Cost: If you're currently on an uncompetitive plan, you very likely find yourself continuing to overpay for weeks while waiting.
Retailer Transparency Lag: Not all retailers publish their price changes early. Some retailers might not update their pricing until well after July 1, and others can change their pricing in response to competitor pricing as it becomes visible in the market, leading to decision delays.
Option 2: Switch Now to a Better Deal
Advantages
Fast-track your Savings: If you're on a legacy plan or a retailer with high markups, switching immediately will quickly reduce your bill.
Switching Is Free and Fast: There's no fee for switching, and if the new plan’s price later becomes unattractive, you can switch again.
Disadvantages
Risk of Post-Switch Price Hike: If the retailer you switch to announces steep price increases for 1 July, you may have to re-evaluate and switch again — possibly causing churn fatigue or temporary confusion.
Cooling-Off and Transfer Times: Switching doesn't take effect instantly — there’s a 10-day cooling-off period and it might take 1-2 weeks to complete the move.
Strategic Approach: Hybrid Option
Bill Hero will show you where your plan sits in the market today — if your current plan is overpriced beyond your Bothered Threshold, it's probably worth switching now, and just accept that it's possible you might find it worthwhile switching again in the future.
Have your say
Got opinions about the annual energy price change? Have your say in the comments, but please first read and understand our Community Guidelines.
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Richard Foxworthy
