Australians are being urged to review their energy providers, with wholesale energy prices their lowest in three years.
Wholesale prices in some states are less than half the average seen in 2023 and retailers are offering huge deals as they compete for customers in a rare buyers market.
Analysis by personal finance marketplace and advice company Compare Club reveals that energy providers are offering discounts of up to 20% on bills, with some retailers allowing Victorian customers to lock that discount in for 12 months.
It’s likely that the savings currently on offer will be some of the best for the year as energy wholesale prices go up in line with demand and discounts disappear.
During extreme weather like the heatwaves already seen this summer, demand for energy will increase as more people stay indoors to escape the heat, watching TV, streaming, gaming and using the internet as well as running air conditioning or other cooling devices.
Currently, Victorian customers stand to make the biggest as wholesale prices are currently extremely low at less than $38 per Megawatt Hour. This is in stark contrast to 2023, when spot pricing averaged more than $100 MWh.
The below table represents Compare Club's current best offer in each State as of the 11th January 2024. Discounts will vary based on distribution zone and meter type.
Discount v reference price
Estimated savings vs reference price (per year)
“This is the best market for electricity deals that we've seen in three years,” said Compare Club Head of Research, Kate Browne.
"However our recent research showed that the rising cost of energy is the household bill is now the number one cost causing the most stress to Aussies, at the same time we know an huge amount of Australians are paying far more for their energy than they need to because aren’t taking advantage of the discounts and deals that are on offer on the market.
“If this is you, then there hasn’t been a better time in three years to look at changing energy providers as prices are at an all time low but these offers may not be available for very long.
“As a rule of thumb if you haven’t reviewed your energy deal or provider in 12 months you should act NOW. Even if it’s been less than 12 months it’s still worth checking as competition for customers is red hot right now and you may still save money.”
“Switching energy providers is one of the easiest ways to save money, it’s as simple as making a phone call and save up to $500 a year depending on where you live. With no paperwork or changes at home, the only difference customers will notice is the savings on their bill.”
NOTES TO EDITORS
*Spot pricing explained: Retailers can either lock in a wholesale price for several years or buy "spot pricing" - i.e. what the energy wholesalers are selling for at any given point in time. Spot prices are driven by supply and demand - things such as extreme heat or cold, whether the current power plants have outages, whether we're generating enough renewable energy, etc. All spot prices can be seen at the AEMO's dashboard.
**(regional pricing can be sourced for individual outlets upon request)
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