{"id":88612,"date":"2024-12-31T04:49:48","date_gmt":"2024-12-30T19:19:48","guid":{"rendered":"https:\/\/www.solarquotes.com.au\/blog\/?p=88612"},"modified":"2024-12-31T04:49:48","modified_gmt":"2024-12-30T19:19:48","slug":"electricity-costs-accc-mb3084","status":"publish","type":"post","link":"https:\/\/www.solarquotes.com.au\/blog\/electricity-costs-accc-mb3084\/","title":{"rendered":"Loyal To Your Electricity Retailer? It Might Be Costing You Big"},"content":{"rendered":"<p><img decoding=\"async\" class=\"aligncenter size-full wp-image-88613\" src=\"https:\/\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2024\/12\/electricity-bill-cost.jpg\" alt=\"Australian electricity bills and the loyalty tax\" width=\"1200\" height=\"630\" srcset=\"https:\/\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2024\/12\/electricity-bill-cost.jpg 1200w, https:\/\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2024\/12\/electricity-bill-cost-300x158.jpg 300w, https:\/\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2024\/12\/electricity-bill-cost-1024x538.jpg 1024w, https:\/\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2024\/12\/electricity-bill-cost-768x403.jpg 768w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><\/p>\n<p>The Australian Competition and Consumer Commission (ACCC) estimates more than 80% of National Electricity Market (NEM) households are paying more for electricity than they need to.<!--more--><\/p>\n<p>NEM states include Queensland<sup class='endnote'><a href='https:\/\/www.solarquotes.com.au\/blog\/electricity-costs-accc-mb3084\/#en-88612-1' id='enref-88612-1' onclick='return hhEndnotes_show(88612)'>1<\/a><\/sup>, New South Wales (and ACT), Victoria, Tasmania and South Australia &#8211; so, covering the majority of Australia&#8217;s population.<\/p>\n<p>The ACCC&#8217;s finding is related to its <a href=\"https:\/\/www.accc.gov.au\/about-us\/publications\/serial-publications\/inquiry-into-the-national-electricity-market-2018-25-reports\/inquiry-into-the-national-electricity-market-report-december-2024\">latest publication<\/a> &#8211; &#8220;Inquiry into the National Electricity Market report &#8211; December 2024&#8221; &#8211; which was released yesterday.<\/p>\n<p>The Commission says many households remain on market offers priced at or above the government safety net prices (aka standing or Default Market Offers). These &#8220;safety nets&#8221; are designed to ensure those who haven&#8217;t selected a market offer aren&#8217;t gouged (too much). But those who do engage with market offers &#8211; most of us &#8211; are fair game it seems.<\/p>\n<blockquote><p>&#8220;If you haven\u2019t changed electricity plans in the past 12 months, chances are you are paying more for your electricity than you need to,\u201d <a href=\"https:\/\/www.accc.gov.au\/media-release\/no-reward-for-being-loyal-australians-urged-to-shop-around-for-a-better-value-electricity-plan\">said<\/a> ACCC Commissioner Anna Brakey.<\/p><\/blockquote>\n<p>How much more could be significant. The ACCC indicates households on offers more than a year old are paying on average $238 more per year than households on newer offers, and the \u2018loyalty penalty\u2019 increases with the age of the offer.<\/p>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-88618 size-full\" src=\"https:\/\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2024\/12\/old-new-electricity-plans.png\" alt=\"Annual cost difference between old and new electricity plans.\" width=\"872\" height=\"442\" srcset=\"https:\/\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2024\/12\/old-new-electricity-plans.png 872w, https:\/\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2024\/12\/old-new-electricity-plans-300x152.png 300w, https:\/\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2024\/12\/old-new-electricity-plans-768x389.png 768w\" sizes=\"(max-width: 872px) 100vw, 872px\" \/><\/p>\n<p>The Commission found 59% of customers on flat rate offers over 2 years old are on prices at or above the default offers, compared to only 10% of customers on flat rate offers less than 12 months old.<\/p>\n<h2>Demand Charges Particularly Problematic<\/h2>\n<p>The ACCC also found just over half of customers on flat rate plans with a demand charge component were on offers with calculated annual prices at or above flat rate Default Market Offers.<\/p>\n<p><a href=\"https:\/\/www.solarquotes.com.au\/blog\/electricity-demand-tariffs-mb2934\/\">Demand charges<\/a>, or tariffs, can be very nasty. Plans with a demand charge component may offer cheaper grid electricity per kilowatt-hour, but also a demand charge based on peak power draw in kilowatts. Go over the threshold by running multiple power-hungry appliances concurrently, even just briefly, and an extra charge may be applied for every day of the billing period that could wind up being hundreds of dollars in total.<\/p>\n<h2>Comparing Electricity Plans Made Simple(r)<\/h2>\n<p>Trying to compare energy retailers by going to each company&#8217;s web site can be a very time-consuming and frustrating experience.<\/p>\n<p>The ACCC recommends households in NSW\/ACT, QLD, SA and TAS try comparing retailers on the Government website <a href=\"https:\/\/www.energymadeeasy.gov.au\/\">EnergyMadeEasy<\/a>, and those in Victoria use <a href=\"https:\/\/compare.energy.vic.gov.au\/\">Victorian Energy Compare<\/a>.<\/p>\n<p>But while you&#8217;re here, check out SolarQuotes&#8217; easy-to-use <a href=\"https:\/\/www.solarquotes.com.au\/energy\/\">electricity plan comparison tool<\/a>. While it&#8217;s designed with solar households in mind, those without solar panels should find it useful too; and it&#8217;s regularly updated.<\/p>\n<p>If that still seems too much work, you could simply call your energy retailer to see if they have a better offer available. Or even just check your last bill. Guidelines that came into effect on September 30, 2023 in the NEM (2019 in Victoria) require a &#8220;better offer&#8221; or &#8220;best offer&#8221; message on the first page of a bill periodically (at least every 100 days) based on a customer&#8217;s annual usage; and there may be a similar flag in your electricity account online interface.<\/p>\n<p>Here&#8217;s an example of such a message from our most recent electricity bill:<\/p>\n<p><img decoding=\"async\" class=\"aligncenter size-full wp-image-88615\" src=\"https:\/\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2024\/12\/electricity-bill-notice.jpg\" alt=\"electricity bill offer flag\" width=\"734\" height=\"220\" srcset=\"https:\/\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2024\/12\/electricity-bill-notice.jpg 734w, https:\/\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2024\/12\/electricity-bill-notice-300x90.jpg 300w\" sizes=\"(max-width: 734px) 100vw, 734px\" \/><\/p>\n<p>But remember, the flag only relates to plans from your current retailer. The ACCC has also expressed concerns retailers are regularly re-using offer names, which may be confusing for customers and undermine the effectiveness of the messages.<\/p>\n<p>The best electricity plan for households with solar power systems isn&#8217;t necessarily the one with the highest feed in tariffs; rather one with a good balance of FiT rates (such as they are these days), and comparatively low consumption and daily charges.<\/p>\n<p>Most solar-only owners are probably better off on a flat rate tariff, but those with solar and batteries will often find a Time of Use (ToU) tariff plan with lower off-peak and shoulder rates is better. But check the fine print as some ToU plans may have components varying by season &#8211; and watch out for demand charges on ToU offers too.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Australian Competition and Consumer Commission (ACCC) estimates more than 80% of National Electricity Market (NEM) households are paying more for electricity than they need to.<\/p>\n","protected":false},"author":17,"featured_media":88613,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[678],"tags":[],"class_list":["post-88612","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-solar-battery-news","entry"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.5 (Yoast SEO v28.5) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Loyal To Your Electricity Retailer? It Might Be Costing You Big<\/title>\n<meta name=\"description\" content=\"The ACCC estimates more than 80% of Australia&#039;s National Electricity Market households are paying more for electricity than they need to.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.solarquotes.com.au\/blog\/electricity-costs-accc-mb3084\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Loyal To Your Electricity Retailer? 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