4th October, 2017 | 4 minutes

Who’s feeling the shock of high energy prices?

by Row Murray
Energy Geek

If you’ve started to dread the sight of an energy bill in the mailbox, you’re not alone.

Recent Galaxy research suggests more Australians are concerned about their energy bills and 3.6 million households say that their last energy bill was larger than expected. The amount Aussies are shelling out for power and energy has jumped 26 per cent since 2009-10, while households without solar power have been slugged with the largest electricity price hikes over the past twelve months.

Energy has now become an almost permanent burden on the budget and research suggest that four in five (80%) Australian households expect it will become even more expensive over the next five years.

With the vast majority of Australians concerned about current and future energy prices, the good news is there are steps you can take to minimise your energy costs and make sure you’re getting the best deal.

Who’s feeling the shock of high energy prices?

How do I know when it’s time to shop around?

Energy retailers often attract new customers with generous introductory offers.

These offers usually expire after year or two, when you’ll automatically be rolled over onto a ‘standard offer’, and your bills will increase.

Customers who have been with the same retailer for many years could be paying much more than they need to for electricity.

“Thousands of households could be paying more than they need to for energy by not taking advantage of some of the generous introductory offers or discounts energy companies are offering to new customers,” said iSelect Corporate Affairs Manager, Laura Crowden.

If you’re among the reported 73% of Australian households who reduced their heating use in winter to keep bills low, it’s wise to actively seek out a better deal.

How can I go about reducing my energy costs?

There are plenty of quick ways to reduce your energy costs.

Consider switching off unnecessary lights, upgrading your light globes and getting rid of older electrical appliances that are less energy-efficient.

These are, however, only quick-fix solutions. Australian households are in for long-term price rises for both electricity and gas, so you need to plan to reduce your energy costs for the long term:

  1. Investigate and consider using solar energy
  2. Contact your current energy provider and ask for a better deal
  3. Compare energy providers and see what offers are available
  4. Talk to iSelect and get them to negotiate on your behalf, for free.

Galaxy research commissioned by iSelect in July 2017 found that just 13 per cent of homes surveyed had switched providers or plan in the last year to get a better deal. This highlights the importance of regularly shopping around to make sure you aren’t paying too much.

This winter, iSelect helped over 40,000 Australian households to find a better energy deal, and while most of iSelect’s energy customers ended up switching providers, 20% actually found a better deal with their existing provider.

If you think it’s the right time for your household to get about getting a better energy deal, it’s time to shop around with iSelect.

Cost of living can be expensive! See if you can save on your energy bills.

Compare electricity and gas

Source: In July 2016 iSelect commissioned a nationally representative consumer research study with Galaxy Research to assess the attitudes of over 1,100 Australians household decision makers towards energy affordability.

iSelect does not compare all products in the market. Not all products are available at all times. Any advice provided in this content is of a general nature and does not take into account your objectives, financial situation or needs. You need to consider the appropriateness of any information or general advice we give you, having regard to your personal situation, before acting on our advice or purchasing any product.

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