Time to read : 3 Minutes
The wholesale price of energy has gone up in 2022 by as much as 141%. This means that our bills have followed.
Bill payers are unlikely to have too much sympathy with energy companies but in some cases, retailers are losing money in selling us gas or electric unless they pass the costs onto us.
What do I need to know?
Energy prices get affected by a number of things. Everything from the war in the Ukraine, to extreme weather, to shortages of coal combine to drive prices up.
In May, ReAmped Energy told their customers to switch to a cheaper provider or face a huge price rise. They're not currently taking on new customers.
In July, the Australian Energy Regulator raised the Default Market Offer (DMO) - the most customers can be charged - in New South Wales, South Australia and South East Queensland.
The Victorian Default Offer, which is similar to the DMO, has also changed.
Be aware: August is typically the month that retailers introduce price promotions but they've been a lot slower this year. Keep your eyes peeled for offers though. "They'll have to bite the bullet at some point," says Compare Club's CEO Andrew Davis.
What can I do?
The simplest way to cut your bill is to shop around, especially if your energy provider has told you prices are going up.
My colleagues at Compare Club did a bit of number crunching and there's a big difference in some states between the DMO and the cheapest available plan.
South Australians are the state that could save the most. At the time of writing, we estimate there's a $700 difference between the market offer and the cheapest plan.
Some retailers have started to launch offers in the form of cashback or energy credits rather than offering low introductory rates.
You can fix your energy plan or bundle in internet - but make sure you're not locked into a contract that makes it harder to switch in the future.
The bottom line
If you've not shopped around recently, now is a good time.
“We urge customers to take a look at their energy plans because if someone has been with their provider for well over a year, it’s highly likely they won’t be getting the best deal and that their costs will have increased on July 1,” says Davis.
Get informed
Compare Club: 10 foolproof winter energy tips.
Financial Disclaimer:
The information contained on this web page is of general nature only and has been prepared without taking into consideration your objectives, needs and financial situation. You should check with a financial professional before making any decisions.
