With the majority of energy retailers putting up prices for residential customers by up to 29% in NSW on 1 July, and some even increasing prices by 50%, personal finance marketplace 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.
Compare Club’s analysis of current offers and pricing has revealed eye-opening discounts against the Default Market Offer (DMO) reference price in NSW by several retailers. What's more, some retailers are delaying the July 1 price hike, allowing savvy customers to stack additional savings on top of the initial discount.
With energy prices linked to the DMO, users in NSW customers in some areas are increasing by up to 29%, while some retailers have decided to increase prices by a whopping 50%. However, switching providers can mitigate the effect of July’s energy price rise and save up to 31.5% in some areas of NSW.
Households across the state 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 to later in the year.
These potential savings are a welcome form of relief as Compare Club’s recent Bill Stress Index revealed 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 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%.
“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, ” says General Manager of Utilities at Compare Club, Paul Coughran.
“There’s no escaping the price rise - and we’ve already seen most big energy retailers confirm price hikes of between 21% and 30%, and even 50% - 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.
“There’s been slim pickings in energy pricing over the past 12 months, but there are some seriously good discounts available if you know where to look. We know energy bills are a big stress, but when we look at the pricing from our partners, there’s no reason any Australian household should be overpaying for energy this winter.
“This is exactly why it’s crucial for consumers to explore their options and secure the best possible deal. By switching providers through financial marketplaces like Compare Club, individuals can unlock substantial discounts and protect themselves from the impending price rises.”
To learn more about the Energy Default Market Offer and how Compare Club can help consumers save money on their energy bills, visit www.compareclub.com.au/energy.
Media enquiries
Cassandra Geselle & Marietta Delvecchio Media + Capital Partners press@compareclub.com.au
