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How Switching Energy Providers Before The July 1 Price Hike Gives You The Power To Save Hundreds
On 1 July, energy retailers are ringing in the new financial year with massive price hikes.
In NSW, it’s expected that the majority of energy retailers will push electricity tariff increases up as much as 29%.
AGL and Origin are going further, with the news that, for some NSW households, their own prices will climb by up to 51% – a figure far exceeding the ones in regulated benchmark tariffs announced last month.
But to help shocked Australians deal with yet another eye-watering cost-of-living increase, analysis from Compare Club has found that, if households switch to a cheaper plan from a retailer who’s delaying their price rises and bundling energy with broadband, they could save up to $714 a year.
How is the saving projection possible?
The analysis of current offers and pricing looks discounts against the Default Market Offer (DMO) reference price in NSW by several retailers.
What's more, some retailers are delaying the 1 July price hike – allowing savvy customers to stack additional savings on top of the initial discount.
With energy prices linked to the DMO, NSW customers in many areas will see prices increasing by between 29% – 51%.
However, switching providers can mitigate the effect of July’s energy price rise and save up to 31.5% in some areas of NSW.
Shop around, make the switch and relieve the bill stress
Households across NSW could save upwards of $466 by switching energy plans, while customers in parts of regional NSW could save as much as $714 by switching to a retailer that’s postponing their price increase.
These potential savings are a welcome form of relief.
Compare Club’s recent Bill Stress Index reveals that while 1 in 5 (21%) of Australians admit they are struggling to make ends meet, only 20% have switched their utility bill providers.
The research also found that utility bills, including energy, are the second biggest stress for Australian households after their mortgage.
The unwelcome rise in energy costs on 1 July comes in the middle of the expensive winter period, when many households face cold homes and higher bills.
The Australian Energy Regulator (AER), who set the DMO for New South Wales, South East Queensland, and South Australia, announced in March that residential customers on standard retail plans will face price increases of around 19.5% to 23.7%.
Area | FY23 DMO | New DMO from 1 July 2023 | Maximum potential saving |
Sydney & Central Coast (Ausgrid) | $1,512 | $1,827 | $538 |
Western Sydney & Blue Mountains (Endeavour) | $1,726 | $2,228 | $702 |
Regional NSW (Essential) | $2,092 | $2,527 | $714 |
“Seeing energy prices being dramatically increased across New South Wales will be extremely jarring to many households already struggling with the cost of living, but the good news is that there are significant savings to be had for people who are proactive to shop around,”
“There’s no escaping the price rise - and we’ve already seen most big energy retailers confirm price hikes of between 21% and 51% - but there is a silver lining. The increase in the Default Market Offer means that retailers have more leeway to offer significant discounts to new customers,” he says. Paul Coughran, General Manager of Utilities at Compare Club
With “some seriously good discounts” now available “if you know where to look”, Paul says “there’s no reason any Australian household should be overpaying for energy this winter”.
The bottom line
The price hikes are coming – and soon. But it’s still not too late to access savings.
“This is exactly why it’s crucial for consumers to explore their options and secure the best possible deal,” Paul says. “By switching providers through financial marketplaces like Compare Club, individuals can unlock substantial discounts and protect themselves from the impending price rises.”
Go deeper: Costs or tariffs for different electricity meters
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. Any opinions expressed within an article are those of the author and do not specifically reflect the views of Compare Club Australia Pty Ltd.
