In the midst of a cost-of-living crisis, millions of Australians are unknowingly paying more for their electricity than necessary.

The Australian Competition and Consumer Commission (ACCC) has recently exposed this alarming trend, urging consumers to actively seek out cheaper deals as the current protection system has 'failed dismally'.

The ACCC conducted an assessment of the energy deals of five million Australians, comparing them to the cheapest available options on the market.

The results were shocking: a staggering 79 per cent of consumers were found to be on higher offers than what’s available, with the ACCC warning that loyalty to a single provider could be costing Australians dearly.

ACCC exposed how Aussies are getting ripped off in their power consumption bills! Image: Freepik

Money Expert Joel Gibson explained: 'The big secret for years in the energy market has been what people are really paying—we can look at current offers and see what they cost, but most people are paying old prices, and only energy retailers know what those prices are. This report finally pulls back the veil, and what’s behind it is very ugly.'

The ACCC's findings have been described as a 'disgrace', highlighting that Australians are not being protected by default offering, which is meant to be the base level the government regulator sets in July yearly and considers a 'fair price' for electric consumption.

'In 2019, the Morrison government rejigged the energy market to protect households from being ripped off, but now we have half of Australia paying more than the price cap they created,' Gibson said.

'It was meant to be an effective soft price that you pay if you don't shop around for market offers.'

‘This suggests a serious problem in our energy market, with around half of us paying hundreds of dollars, even $1,000 or more above what we should for electricity in the coming year,’ he added.

According to Canstar's Consumer Pulse report released this week, almost 70 per cent of Australians think the government is not doing enough to reduce energy costs, and electricity has remained the main concern for households.

'Electricity costs have reached more than $400 per quarter for the first time since 2019, with Aussies reporting they are paying $34 more on average than respondents were last year,' Canstar explained.

Interestingly, only 16 per cent had switched providers in the last year.

This could be due to a lack of awareness or understanding of the potential savings that could be made by switching providers.

So, how can you save on electricity? One of the most effective ways to take control of your energy bills is to compare energy plans from one year to another. You can do this through this government website.

Comparing will help you avoid paying the loyalty tax that comes from benefit periods running their course after a year before moving on to the provider’s standing offer plan.

ACCC Commissioner Anna Brakey said: 'Electricity retailers offer cheaper plans to attract new customers, but over time, we observe these plans becoming relatively more expensive, so many loyal customers will be paying more than they need to be.'

‘Prices for new customers tend to be competitive, but we are concerned that the market is not delivering for customers who do not regularly switch or engage with their existing retailer.’

From September 30, electricity companies are required to notify customers of their bills for an affordable plan available, including the savings they could gain by switching.

This is called the retailer’s ‘better offer’ statement and will be displayed on the first page of subscribers' regular power bills.

The Australian Energy Regulator’s (AER) Better Bills Guideline also requires retailers to include details on how to switch plans. This is a significant step towards transparency and empowering consumers to make informed decisions about their energy consumption.

However, the onus is still on consumers to actively seek out the best deals. Gibson explained, 'It's called the front book/back book pricing methodology…You see it in energy, insurance, banking, and it means old loyal customers pay more to subsidise the cheap deals to attract new customers.'

‘So it's always been a bit of a mystery whether you're getting the best deal—they have “retention offers” that they only offer you when you're leaving.’

‘They also have under-the-table deals they offer to friends and family, or to motoring clubs or rewards programs or money-saving clubs.’

You can watch Gibson’s video below:

​

In conclusion, it's crucial for consumers to stay informed and proactive in managing their energy costs.

Regularly comparing energy plans and switching providers when necessary can lead to significant savings. Don't let loyalty to a single provider cost you hundreds, or even thousands, of dollars each year.

Key Takeaways

• An ACCC report revealed that 79 per cent of Australians were paying more for electricity than necessary, with many on higher offers compared to the cheapest on the market.
• Loyalty was identified as costly for Australians who initially signed up for cheap plans that later increased in price, and default offers set by the government were not providing the intended protection.
• The ACCC and experts suggest that Australians should compare energy plans annually to avoid overpaying and to benefit from competitive deals.
• From September 30, power companies are obligated to inform customers of affordable plans available and how to switch, aimed at improving transparency and potentially leading to savings for customers.

What are your thoughts on this issue? Have you experienced a similar situation? Share your experiences and tips in the comments below.

 

[wendell]

it appears business is a big rip off . They all want the $ and don’t care who they take it from . From Supermarkets to Electricity , to Disability Services , Aged Care the lot all wanting your $ and don’t care how they get it . Old expression I have heard is DOG EAT DOG sure applies . Ask for service from Big Business , they have never heard of it . They want you to do everything , go online , use self checkout even Telstra do not take telephone calls to your local Telstra store
Go on line and they give you a list of what to do or go in store . Service has gone out the window in the majority of cases .

 

[Suzanne rose]

I have now been with AGL for a few years now and every six months I check if I'm getting the best deal and AGL comes up on top.
I called yesterday to see if there was a better plan and yeh I got a really nice man who was actually in Australia.
He said the best plan for me would be The Seniors Saver on top of the best plan you also receive $120 credit applied to your first bill
I would ssuggest to check it out. Im in sydney and I do know it's different prices in different areas

 

[mylittletibbies]

So many people complain about these things endlessly but are too damn lazy to even try to make the effort to get a cheaper rate be it mortgage, electricity, insurance etc .
I do not use comparison companies because they don't compare all companies, but every year check the best rate I can get myself on my insurances.
Real estate agents are also a rip off with their commissions. I always sell my own properties and have saved in excess of $200 thousand over the years. I realise most people don't sell as many properties as me, but you can save $10-20,000;on just one sale.
They also under value properties in order to get a quick sale. Not only did I save my son the sales commission but also achieved an additional $55,000 over the highest appraisal,
when I recently sold his home.for.him.
Then you get the other agents who quote ridiculously high values and then after they get the listing start telling you the market will not meet that price and you need to drop it.
I think real estate agents are worse than car salesmen.

 

[Shirley Broomhall]

In the midst of a cost-of-living crisis, millions of Australians are unknowingly paying more for their electricity than necessary.

The Australian Competition and Consumer Commission (ACCC) has recently exposed this alarming trend, urging consumers to actively seek out cheaper deals as the current protection system has 'failed dismally'.

The ACCC conducted an assessment of the energy deals of five million Australians, comparing them to the cheapest available options on the market.

The results were shocking: a staggering 79 per cent of consumers were found to be on higher offers than what’s available, with the ACCC warning that loyalty to a single provider could be costing Australians dearly.

View attachment 37765

ACCC exposed how Aussies are getting ripped off in their power consumption bills! Image: Freepik

Money Expert Joel Gibson explained: 'The big secret for years in the energy market has been what people are really paying—we can look at current offers and see what they cost, but most people are paying old prices, and only energy retailers know what those prices are. This report finally pulls back the veil, and what’s behind it is very ugly.'

The ACCC's findings have been described as a 'disgrace', highlighting that Australians are not being protected by default offering, which is meant to be the base level the government regulator sets in July yearly and considers a 'fair price' for electric consumption.

'In 2019, the Morrison government rejigged the energy market to protect households from being ripped off, but now we have half of Australia paying more than the price cap they created,' Gibson said.

'It was meant to be an effective soft price that you pay if you don't shop around for market offers.'

‘This suggests a serious problem in our energy market, with around half of us paying hundreds of dollars, even $1,000 or more above what we should for electricity in the coming year,’ he added.

According to Canstar's Consumer Pulse report released this week, almost 70 per cent of Australians think the government is not doing enough to reduce energy costs, and electricity has remained the main concern for households.

'Electricity costs have reached more than $400 per quarter for the first time since 2019, with Aussies reporting they are paying $34 more on average than respondents were last year,' Canstar explained.

Interestingly, only 16 per cent had switched providers in the last year.

This could be due to a lack of awareness or understanding of the potential savings that could be made by switching providers.

So, how can you save on electricity? One of the most effective ways to take control of your energy bills is to compare energy plans from one year to another. You can do this through this government website.

Comparing will help you avoid paying the loyalty tax that comes from benefit periods running their course after a year before moving on to the provider’s standing offer plan.

ACCC Commissioner Anna Brakey said: 'Electricity retailers offer cheaper plans to attract new customers, but over time, we observe these plans becoming relatively more expensive, so many loyal customers will be paying more than they need to be.'

‘Prices for new customers tend to be competitive, but we are concerned that the market is not delivering for customers who do not regularly switch or engage with their existing retailer.’

From September 30, electricity companies are required to notify customers of their bills for an affordable plan available, including the savings they could gain by switching.

This is called the retailer’s ‘better offer’ statement and will be displayed on the first page of subscribers' regular power bills.

The Australian Energy Regulator’s (AER) Better Bills Guideline also requires retailers to include details on how to switch plans. This is a significant step towards transparency and empowering consumers to make informed decisions about their energy consumption.

However, the onus is still on consumers to actively seek out the best deals. Gibson explained, 'It's called the front book/back book pricing methodology…You see it in energy, insurance, banking, and it means old loyal customers pay more to subsidise the cheap deals to attract new customers.'

‘So it's always been a bit of a mystery whether you're getting the best deal—they have “retention offers” that they only offer you when you're leaving.’

‘They also have under-the-table deals they offer to friends and family, or to motoring clubs or rewards programs or money-saving clubs.’

You can watch Gibson’s video below:

​

In conclusion, it's crucial for consumers to stay informed and proactive in managing their energy costs.

Regularly comparing energy plans and switching providers when necessary can lead to significant savings. Don't let loyalty to a single provider cost you hundreds, or even thousands, of dollars each year.

Key Takeaways

• An ACCC report revealed that 79 per cent of Australians were paying more for electricity than necessary, with many on higher offers compared to the cheapest on the market.
• Loyalty was identified as costly for Australians who initially signed up for cheap plans that later increased in price, and default offers set by the government were not providing the intended protection.
• The ACCC and experts suggest that Australians should compare energy plans annually to avoid overpaying and to benefit from competitive deals.
• From September 30, power companies are obligated to inform customers of affordable plans available and how to switch, aimed at improving transparency and potentially leading to savings for customers.

What are your thoughts on this issue? Have you experienced a similar situation? Share your experiences and tips in the comments below.

I've just joined another energy company. After several years with A.G.L, I was asked to provide a meter reading. I asked the staff member I spoke to, why my electricity bill had been $70 for the last four months, and was told, that was I was on a ' smoothing ' account. I replied that I paid monthly by direct debit. The account was almost $400 in credit. Despite several emails and phone calls, I was sent the standard message, with no explanation as to why I was on a smoothing account, when I was direct debited $ 70 a month. That explained the credit. Eventually I contacted the Ombudsman, and received an apology and a weekly phone call to ask if I would close the dispute, as to why A.G.L didn't use the $400 instead of taking $70 a month direct debit. The accounts are difficult to understand, and power companies use this to their advantage. I asked who benefited from the interest the $400 in credit accrued . If it's held by the company, and multiplied by amounts held in credit by the company's consumers around Australia, that’s a lot of interest. I don't trust companies who aren't transparent in their dealings with their consumers.

 

[wjs1957]

In the midst of a cost-of-living crisis, millions of Australians are unknowingly paying more for their electricity than necessary.

The Australian Competition and Consumer Commission (ACCC) has recently exposed this alarming trend, urging consumers to actively seek out cheaper deals as the current protection system has 'failed dismally'.

The ACCC conducted an assessment of the energy deals of five million Australians, comparing them to the cheapest available options on the market.

The results were shocking: a staggering 79 per cent of consumers were found to be on higher offers than what’s available, with the ACCC warning that loyalty to a single provider could be costing Australians dearly.

View attachment 37765

ACCC exposed how Aussies are getting ripped off in their power consumption bills! Image: Freepik

Money Expert Joel Gibson explained: 'The big secret for years in the energy market has been what people are really paying—we can look at current offers and see what they cost, but most people are paying old prices, and only energy retailers know what those prices are. This report finally pulls back the veil, and what’s behind it is very ugly.'

The ACCC's findings have been described as a 'disgrace', highlighting that Australians are not being protected by default offering, which is meant to be the base level the government regulator sets in July yearly and considers a 'fair price' for electric consumption.

'In 2019, the Morrison government rejigged the energy market to protect households from being ripped off, but now we have half of Australia paying more than the price cap they created,' Gibson said.

'It was meant to be an effective soft price that you pay if you don't shop around for market offers.'

‘This suggests a serious problem in our energy market, with around half of us paying hundreds of dollars, even $1,000 or more above what we should for electricity in the coming year,’ he added.

According to Canstar's Consumer Pulse report released this week, almost 70 per cent of Australians think the government is not doing enough to reduce energy costs, and electricity has remained the main concern for households.

'Electricity costs have reached more than $400 per quarter for the first time since 2019, with Aussies reporting they are paying $34 more on average than respondents were last year,' Canstar explained.

Interestingly, only 16 per cent had switched providers in the last year.

This could be due to a lack of awareness or understanding of the potential savings that could be made by switching providers.

So, how can you save on electricity? One of the most effective ways to take control of your energy bills is to compare energy plans from one year to another. You can do this through this government website.

Comparing will help you avoid paying the loyalty tax that comes from benefit periods running their course after a year before moving on to the provider’s standing offer plan.

ACCC Commissioner Anna Brakey said: 'Electricity retailers offer cheaper plans to attract new customers, but over time, we observe these plans becoming relatively more expensive, so many loyal customers will be paying more than they need to be.'

‘Prices for new customers tend to be competitive, but we are concerned that the market is not delivering for customers who do not regularly switch or engage with their existing retailer.’

From September 30, electricity companies are required to notify customers of their bills for an affordable plan available, including the savings they could gain by switching.

This is called the retailer’s ‘better offer’ statement and will be displayed on the first page of subscribers' regular power bills.

The Australian Energy Regulator’s (AER) Better Bills Guideline also requires retailers to include details on how to switch plans. This is a significant step towards transparency and empowering consumers to make informed decisions about their energy consumption.

However, the onus is still on consumers to actively seek out the best deals. Gibson explained, 'It's called the front book/back book pricing methodology…You see it in energy, insurance, banking, and it means old loyal customers pay more to subsidise the cheap deals to attract new customers.'

‘So it's always been a bit of a mystery whether you're getting the best deal—they have “retention offers” that they only offer you when you're leaving.’

‘They also have under-the-table deals they offer to friends and family, or to motoring clubs or rewards programs or money-saving clubs.’

You can watch Gibson’s video below:

​

In conclusion, it's crucial for consumers to stay informed and proactive in managing their energy costs.

Regularly comparing energy plans and switching providers when necessary can lead to significant savings. Don't let loyalty to a single provider cost you hundreds, or even thousands, of dollars each year.

Key Takeaways

• An ACCC report revealed that 79 per cent of Australians were paying more for electricity than necessary, with many on higher offers compared to the cheapest on the market.
• Loyalty was identified as costly for Australians who initially signed up for cheap plans that later increased in price, and default offers set by the government were not providing the intended protection.
• The ACCC and experts suggest that Australians should compare energy plans annually to avoid overpaying and to benefit from competitive deals.
• From September 30, power companies are obligated to inform customers of affordable plans available and how to switch, aimed at improving transparency and potentially leading to savings for customers.

What are your thoughts on this issue? Have you experienced a similar situation? Share your experiences and tips in the comments below.

These are the reasons why power costs are so high:
1. Unless you live in a major city, you have no choice who you are with;
2. Government stupidity in that the idiots are trying to phase out fossil fuels before green energy is cheaper;
3. Failure to have uranium in the mix; and
4. Subsidies for green power.

 

[Colleen M]

I just did this government comparison supplied in the article and it came up with a more costly plan, guess i will stay where i am.

 

[Squizzy1]

In the midst of a cost-of-living crisis, millions of Australians are unknowingly paying more for their electricity than necessary.

The Australian Competition and Consumer Commission (ACCC) has recently exposed this alarming trend, urging consumers to actively seek out cheaper deals as the current protection system has 'failed dismally'.

The ACCC conducted an assessment of the energy deals of five million Australians, comparing them to the cheapest available options on the market.

The results were shocking: a staggering 79 per cent of consumers were found to be on higher offers than what’s available, with the ACCC warning that loyalty to a single provider could be costing Australians dearly.

View attachment 37765

ACCC exposed how Aussies are getting ripped off in their power consumption bills! Image: Freepik

Money Expert Joel Gibson explained: 'The big secret for years in the energy market has been what people are really paying—we can look at current offers and see what they cost, but most people are paying old prices, and only energy retailers know what those prices are. This report finally pulls back the veil, and what’s behind it is very ugly.'

The ACCC's findings have been described as a 'disgrace', highlighting that Australians are not being protected by default offering, which is meant to be the base level the government regulator sets in July yearly and considers a 'fair price' for electric consumption.

'In 2019, the Morrison government rejigged the energy market to protect households from being ripped off, but now we have half of Australia paying more than the price cap they created,' Gibson said.

'It was meant to be an effective soft price that you pay if you don't shop around for market offers.'

‘This suggests a serious problem in our energy market, with around half of us paying hundreds of dollars, even $1,000 or more above what we should for electricity in the coming year,’ he added.

According to Canstar's Consumer Pulse report released this week, almost 70 per cent of Australians think the government is not doing enough to reduce energy costs, and electricity has remained the main concern for households.

'Electricity costs have reached more than $400 per quarter for the first time since 2019, with Aussies reporting they are paying $34 more on average than respondents were last year,' Canstar explained.

Interestingly, only 16 per cent had switched providers in the last year.

This could be due to a lack of awareness or understanding of the potential savings that could be made by switching providers.

So, how can you save on electricity? One of the most effective ways to take control of your energy bills is to compare energy plans from one year to another. You can do this through this government website.

Comparing will help you avoid paying the loyalty tax that comes from benefit periods running their course after a year before moving on to the provider’s standing offer plan.

ACCC Commissioner Anna Brakey said: 'Electricity retailers offer cheaper plans to attract new customers, but over time, we observe these plans becoming relatively more expensive, so many loyal customers will be paying more than they need to be.'

‘Prices for new customers tend to be competitive, but we are concerned that the market is not delivering for customers who do not regularly switch or engage with their existing retailer.’

From September 30, electricity companies are required to notify customers of their bills for an affordable plan available, including the savings they could gain by switching.

This is called the retailer’s ‘better offer’ statement and will be displayed on the first page of subscribers' regular power bills.

The Australian Energy Regulator’s (AER) Better Bills Guideline also requires retailers to include details on how to switch plans. This is a significant step towards transparency and empowering consumers to make informed decisions about their energy consumption.

However, the onus is still on consumers to actively seek out the best deals. Gibson explained, 'It's called the front book/back book pricing methodology…You see it in energy, insurance, banking, and it means old loyal customers pay more to subsidise the cheap deals to attract new customers.'

‘So it's always been a bit of a mystery whether you're getting the best deal—they have “retention offers” that they only offer you when you're leaving.’

‘They also have under-the-table deals they offer to friends and family, or to motoring clubs or rewards programs or money-saving clubs.’

You can watch Gibson’s video below:

​

In conclusion, it's crucial for consumers to stay informed and proactive in managing their energy costs.

Regularly comparing energy plans and switching providers when necessary can lead to significant savings. Don't let loyalty to a single provider cost you hundreds, or even thousands, of dollars each year.

Key Takeaways

• An ACCC report revealed that 79 per cent of Australians were paying more for electricity than necessary, with many on higher offers compared to the cheapest on the market.
• Loyalty was identified as costly for Australians who initially signed up for cheap plans that later increased in price, and default offers set by the government were not providing the intended protection.
• The ACCC and experts suggest that Australians should compare energy plans annually to avoid overpaying and to benefit from competitive deals.
• From September 30, power companies are obligated to inform customers of affordable plans available and how to switch, aimed at improving transparency and potentially leading to savings for customers.

What are your thoughts on this issue? Have you experienced a similar situation? Share your experiences and tips in the comments below.

I would have thought this was illegal, and if true they are little better than all the other scammers on the web. Web is a good word for it, every dirty grub on the planet, just waiting to catch you out. The AER guidelines are little more than rules for the suppliers to put the onus on the consumers, why? This is little more than a game of cat and mouse imo.

 

[Squizzy1]

These are the reasons why power costs are so high:
1. Unless you live in a major city, you have no choice who you are with;
2. Government stupidity in that the idiots are trying to phase out fossil fuels before green energy is cheaper;
3. Failure to have uranium in the mix; and
4. Subsidies for green power.

Power costs are so high because of privatisation, both in the fuel supply and generation. The Govt. can only phase out fossil fuels by not approving future market growth, and that takes decades and hasn't happened yet as we are exporting more than ever. Nuclear is not only a threat to life in more ways than one, but the most expensive form of energy, particularly when we would be starting from scratch and reliant on foreigners, and fossils are subsidised too, not that you would know it.

 

[pbattershill]

I recently changed from Origin to Ampol. Origin recovery team phoned me wanting to keep my business and trying to offer better rates. I told them if you offer me better rates offer everyone and publish those rates. Clearly they did not want to do this. So i am with Ampol with some fossil fuel discounts as well

 

[MHM]

In the midst of a cost-of-living crisis, millions of Australians are unknowingly paying more for their electricity than necessary.

The Australian Competition and Consumer Commission (ACCC) has recently exposed this alarming trend, urging consumers to actively seek out cheaper deals as the current protection system has 'failed dismally'.

The ACCC conducted an assessment of the energy deals of five million Australians, comparing them to the cheapest available options on the market.

The results were shocking: a staggering 79 per cent of consumers were found to be on higher offers than what’s available, with the ACCC warning that loyalty to a single provider could be costing Australians dearly.

View attachment 37765

ACCC exposed how Aussies are getting ripped off in their power consumption bills! Image: Freepik

Money Expert Joel Gibson explained: 'The big secret for years in the energy market has been what people are really paying—we can look at current offers and see what they cost, but most people are paying old prices, and only energy retailers know what those prices are. This report finally pulls back the veil, and what’s behind it is very ugly.'

The ACCC's findings have been described as a 'disgrace', highlighting that Australians are not being protected by default offering, which is meant to be the base level the government regulator sets in July yearly and considers a 'fair price' for electric consumption.

'In 2019, the Morrison government rejigged the energy market to protect households from being ripped off, but now we have half of Australia paying more than the price cap they created,' Gibson said.

'It was meant to be an effective soft price that you pay if you don't shop around for market offers.'

‘This suggests a serious problem in our energy market, with around half of us paying hundreds of dollars, even $1,000 or more above what we should for electricity in the coming year,’ he added.

According to Canstar's Consumer Pulse report released this week, almost 70 per cent of Australians think the government is not doing enough to reduce energy costs, and electricity has remained the main concern for households.

'Electricity costs have reached more than $400 per quarter for the first time since 2019, with Aussies reporting they are paying $34 more on average than respondents were last year,' Canstar explained.

Interestingly, only 16 per cent had switched providers in the last year.

This could be due to a lack of awareness or understanding of the potential savings that could be made by switching providers.

So, how can you save on electricity? One of the most effective ways to take control of your energy bills is to compare energy plans from one year to another. You can do this through this government website.

Comparing will help you avoid paying the loyalty tax that comes from benefit periods running their course after a year before moving on to the provider’s standing offer plan.

ACCC Commissioner Anna Brakey said: 'Electricity retailers offer cheaper plans to attract new customers, but over time, we observe these plans becoming relatively more expensive, so many loyal customers will be paying more than they need to be.'

‘Prices for new customers tend to be competitive, but we are concerned that the market is not delivering for customers who do not regularly switch or engage with their existing retailer.’

From September 30, electricity companies are required to notify customers of their bills for an affordable plan available, including the savings they could gain by switching.

This is called the retailer’s ‘better offer’ statement and will be displayed on the first page of subscribers' regular power bills.

The Australian Energy Regulator’s (AER) Better Bills Guideline also requires retailers to include details on how to switch plans. This is a significant step towards transparency and empowering consumers to make informed decisions about their energy consumption.

However, the onus is still on consumers to actively seek out the best deals. Gibson explained, 'It's called the front book/back book pricing methodology…You see it in energy, insurance, banking, and it means old loyal customers pay more to subsidise the cheap deals to attract new customers.'

‘So it's always been a bit of a mystery whether you're getting the best deal—they have “retention offers” that they only offer you when you're leaving.’

‘They also have under-the-table deals they offer to friends and family, or to motoring clubs or rewards programs or money-saving clubs.’

You can watch Gibson’s video below:

​

In conclusion, it's crucial for consumers to stay informed and proactive in managing their energy costs.

Regularly comparing energy plans and switching providers when necessary can lead to significant savings. Don't let loyalty to a single provider cost you hundreds, or even thousands, of dollars each year.

Key Takeaways

• An ACCC report revealed that 79 per cent of Australians were paying more for electricity than necessary, with many on higher offers compared to the cheapest on the market.
• Loyalty was identified as costly for Australians who initially signed up for cheap plans that later increased in price, and default offers set by the government were not providing the intended protection.
• The ACCC and experts suggest that Australians should compare energy plans annually to avoid overpaying and to benefit from competitive deals.
• From September 30, power companies are obligated to inform customers of affordable plans available and how to switch, aimed at improving transparency and potentially leading to savings for customers.

What are your thoughts on this issue? Have you experienced a similar situation? Share your experiences and tips in the comments below.

This is another of SDC's unfortunate attempts to show itself as the consumers' (or pensioners') "white knight". It is nothing of the sort. Paraphrasing sensationalist assertions of poorly operating regulatory bodies and self described "experts" in the commercial field is not good journalism (is there such a thing as "good journalism"). The Misinformation legislation cannot come into place soon enough. Constant shopping around and chopping and changing providers is a recipe for stress, not cheaper prices.

 

[Squizzy1]

So many people complain about these things endlessly but are too damn lazy to even try to make the effort to get a cheaper rate be it mortgage, electricity, insurance etc .
I do not use comparison companies because they don't compare all companies, but every year check the best rate I can get myself on my insurances.
Real estate agents are also a rip off with their commissions. I always sell my own properties and have saved in excess of $200 thousand over the years. I realise most people don't sell as many properties as me, but you can save $10-20,000;on just one sale.
They also under value properties in order to get a quick sale. Not only did I save my son the sales commission but also achieved an additional $55,000 over the highest appraisal,
when I recently sold his home.for.him.
Then you get the other agents who quote ridiculously high values and then after they get the listing start telling you the market will not meet that price and you need to drop it.
I think real estate agents are worse than car salesmen.

Energy imo is one of the few commodities where competition has driven the market up, there are so many suppliers now living off the same coin. Insurers, Banks etc, well most should be behind bars imo.

 

[riskydave]

Is there any company in Ausrralia not ripping the public off??

 

[mylittletibbies]

This is another of SDC's unfortunate attempts to show itself as the consumers' (or pensioners') "white knight". It is nothing of the sort. Paraphrasing sensationalist assertions of poorly operating regulatory bodies and self described "experts" in the commercial field is not good journalism (is there such a thing as "good journalism"). The Misinformation legislation cannot come into place soon enough. Constant shopping around and chopping and changing providers is a recipe for stress, not cheaper prices.

That is not correct,.I check insurances every year and have saved hundreds of dollars on most occasions. Doesn't cause me any stress.
We only have one energy provider here in WA, but I have.a.large solar system so my bills are negligible.
I own my home so don't have to worry about a mortgage thankfully.
Anything that can save a few dollars these days is worth the effort.
Why do you even bother to read SDC is this is your attitude, other people are interested. You're not the only grain of sand on the beach.

 

[mylittletibbies]

Is there any company in Ausrralia not ripping the public off??

Nope, don't think so

 

[Khate]

Have no choice here, it's Energex, or Energex

 

[Herbie2404]

In the midst of a cost-of-living crisis, millions of Australians are unknowingly paying more for their electricity than necessary.

The Australian Competition and Consumer Commission (ACCC) has recently exposed this alarming trend, urging consumers to actively seek out cheaper deals as the current protection system has 'failed dismally'.

The ACCC conducted an assessment of the energy deals of five million Australians, comparing them to the cheapest available options on the market.

The results were shocking: a staggering 79 per cent of consumers were found to be on higher offers than what’s available, with the ACCC warning that loyalty to a single provider could be costing Australians dearly.

View attachment 37765

ACCC exposed how Aussies are getting ripped off in their power consumption bills! Image: Freepik

Money Expert Joel Gibson explained: 'The big secret for years in the energy market has been what people are really paying—we can look at current offers and see what they cost, but most people are paying old prices, and only energy retailers know what those prices are. This report finally pulls back the veil, and what’s behind it is very ugly.'

The ACCC's findings have been described as a 'disgrace', highlighting that Australians are not being protected by default offering, which is meant to be the base level the government regulator sets in July yearly and considers a 'fair price' for electric consumption.

'In 2019, the Morrison government rejigged the energy market to protect households from being ripped off, but now we have half of Australia paying more than the price cap they created,' Gibson said.

'It was meant to be an effective soft price that you pay if you don't shop around for market offers.'

‘This suggests a serious problem in our energy market, with around half of us paying hundreds of dollars, even $1,000 or more above what we should for electricity in the coming year,’ he added.

According to Canstar's Consumer Pulse report released this week, almost 70 per cent of Australians think the government is not doing enough to reduce energy costs, and electricity has remained the main concern for households.

'Electricity costs have reached more than $400 per quarter for the first time since 2019, with Aussies reporting they are paying $34 more on average than respondents were last year,' Canstar explained.

Interestingly, only 16 per cent had switched providers in the last year.

This could be due to a lack of awareness or understanding of the potential savings that could be made by switching providers.

So, how can you save on electricity? One of the most effective ways to take control of your energy bills is to compare energy plans from one year to another. You can do this through this government website.

Comparing will help you avoid paying the loyalty tax that comes from benefit periods running their course after a year before moving on to the provider’s standing offer plan.

ACCC Commissioner Anna Brakey said: 'Electricity retailers offer cheaper plans to attract new customers, but over time, we observe these plans becoming relatively more expensive, so many loyal customers will be paying more than they need to be.'

‘Prices for new customers tend to be competitive, but we are concerned that the market is not delivering for customers who do not regularly switch or engage with their existing retailer.’

From September 30, electricity companies are required to notify customers of their bills for an affordable plan available, including the savings they could gain by switching.

This is called the retailer’s ‘better offer’ statement and will be displayed on the first page of subscribers' regular power bills.

The Australian Energy Regulator’s (AER) Better Bills Guideline also requires retailers to include details on how to switch plans. This is a significant step towards transparency and empowering consumers to make informed decisions about their energy consumption.

However, the onus is still on consumers to actively seek out the best deals. Gibson explained, 'It's called the front book/back book pricing methodology…You see it in energy, insurance, banking, and it means old loyal customers pay more to subsidise the cheap deals to attract new customers.'

‘So it's always been a bit of a mystery whether you're getting the best deal—they have “retention offers” that they only offer you when you're leaving.’

‘They also have under-the-table deals they offer to friends and family, or to motoring clubs or rewards programs or money-saving clubs.’

You can watch Gibson’s video below:

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In conclusion, it's crucial for consumers to stay informed and proactive in managing their energy costs.

Regularly comparing energy plans and switching providers when necessary can lead to significant savings. Don't let loyalty to a single provider cost you hundreds, or even thousands, of dollars each year.

Key Takeaways

• An ACCC report revealed that 79 per cent of Australians were paying more for electricity than necessary, with many on higher offers compared to the cheapest on the market.
• Loyalty was identified as costly for Australians who initially signed up for cheap plans that later increased in price, and default offers set by the government were not providing the intended protection.
• The ACCC and experts suggest that Australians should compare energy plans annually to avoid overpaying and to benefit from competitive deals.
• From September 30, power companies are obligated to inform customers of affordable plans available and how to switch, aimed at improving transparency and potentially leading to savings for customers.

What are your thoughts on this issue? Have you experienced a similar situation? Share your experiences and tips in the comments below.

Why is the ACCC sitting on their hands, doing surveys & getting paid big wages & doing nothing to correct this situation it’s like petrol the price per barrel hasn’t gone up but petrol is set to rise over Christmas it’s a rip off

 

[Loubeauxarts]

I've just joined another energy company. After several years with A.G.L, I was asked to provide a meter reading. I asked the staff member I spoke to, why my electricity bill had been $70 for the last four months, and was told, that was I was on a ' smoothing ' account. I replied that I paid monthly by direct debit. The account was almost $400 in credit. Despite several emails and phone calls, I was sent the standard message, with no explanation as to why I was on a smoothing account, when I was direct debited $ 70 a month. That explained the credit. Eventually I contacted the Ombudsman, and received an apology and a weekly phone call to ask if I would close the dispute, as to why A.G.L didn't use the $400 instead of taking $70 a month direct debit. The accounts are difficult to understand, and power companies use this to their advantage. I asked who benefited from the interest the $400 in credit accrued . If it's held by the company, and multiplied by amounts held in credit by the company's consumers around Australia, that’s a lot of interest. I don't trust companies who aren't transparent in their dealings with their consumers.

I thought it was just me. I am also on bill smoothing with AGL and now am about $210 in credit. They take $43 per fortnight from my pension and my monthly electricity bill is about $75. I contacted them last week to ask about using the credit to pay my gas bill $156 so I'd have that money for Christmas and was told that if I used it my bill smoothing deduction would be increased! Wtf!!!
It is my money but I'm penalised if I try to use it. BTW $43 per fortnight equates to $94 per calendar month so my credit is increasing by approximately $18 per month but I can't access it. SMH

 

[bluetang]

In FNQ we have no choice. One Electricity provider.

 

[mylittletibbies]

I thought it was just me. I am also on bill smoothing with AGL and now am about $210 in credit. They take $43 per fortnight from my pension and my monthly electricity bill is about $75. I contacted them last week to ask about using the credit to pay my gas bill $156 so I'd have that money for Christmas and was told that if I used it my bill smoothing deduction would be increased! Wtf!!!
It is my money but I'm penalised if I try to use it. BTW $43 per fortnight equates to $94 per calendar month so my credit is increasing by approximately $18 per month but I can't access it. SMH

I can't believe they are actually allowed to do that. Sounds mighty shonky to me.