{"id":97262,"date":"2026-01-16T04:00:57","date_gmt":"2026-01-15T18:30:57","guid":{"rendered":"https:\/\/www.solarquotes.com.au\/blog\/?p=97262"},"modified":"2026-01-16T04:00:57","modified_gmt":"2026-01-15T18:30:57","slug":"electricity-loyalty-penalty-mb3359","status":"publish","type":"post","link":"https:\/\/www.solarquotes.com.au\/blog\/electricity-loyalty-penalty-mb3359\/","title":{"rendered":"Electricity Customer ‘Loyalty Penalty’ Alive And Well In 2026"},"content":{"rendered":"

\"Australian<\/p>\n

The Australian Competition and Consumer Commission (ACCC) has again warned that millions of Australian households aren’t on the cheapest electricity plan; many effectively being slugged with a “loyalty penalty” by their current retailer. And the financial hit is significant.<\/p>\n

What’s The Impact Of\u00a0 Electricity Loyalty Penalties?<\/h2>\n

A couple of days before Xmas, the ACCC urged households to change electricity plans to help offset the loss of Energy Bill Relief Fund rebates<\/a>, an initiative that ceased at the end of last year.\u00a0But regularly comparing electricity plans<\/a> wouldn’t be on many Australians’ top 10 lists of things to do; particularly at that time of the year.<\/p>\n

The call came after the ACCC\u2019s latest Electricity Market Inquiry report<\/a> revealed households on the same electricity plan for more than three years were paying on average $221 more annually than customers on new plans.<\/p>\n

\u201cLoyalty penalties are alive and well in the retail electricity market, so the very best thing people can do to save money is to switch plans \u2013 either moving to a cheaper plan offered by their existing retailer or changing retailers,\u201d said ACCC Commissioner<\/a> Anna Brakey. \u201cMany households could effectively replicate the value of the recently ended government rebates by changing plans.\u201d<\/p><\/blockquote>\n

The report indicates close to 2.5 million customers are paying prices at or above the default offer1<\/a><\/sup>; with more than 400,000 paying more than 10 per cent over the default offer.<\/p>\n

‘Better Bills’ Reforms Help Alert Consumers<\/h2>\n

While the number of Australian households paying too much for electricity remains very high, earlier \u2018Better Bills\u2019 reforms have had some positive impact on consumers. Although not perfect, these reforms required energy retailers to make bills clearer, simpler, and include prominent “better offer” messages.<\/p>\n

Approximately 27 per cent of residential customers were on their retailer\u2019s best plan at some point in 2024\u201325; up from 19 per cent between January and August 2024. There was also an increased proportion of customers on plans less than a year old, jumping from 29 per cent in August 2024 to 42 per cent in August 2025.<\/p>\n

The following graph shows the proportion of customers receiving different types of \u2018Better\/ Best Offer\u2019 messaging, all regions combined; for the periods 1 January 2024 to 13 August 2024, and 1 July 2024 to 30 June 2025.<\/p>\n

\"Graph<\/p>\n

The ACCC previously flagged the electricity retailer loyalty penalty<\/a> issue in late 2024.<\/p>\n

Further Electricity Bill Reforms In The Works<\/h2>\n

As mentioned, the Better Bills reforms weren’t perfect. For example, the requirement for more prominent “better offer” messages saw some retailers create plans with the same names, but different (and lower) pricing for new customers. The practice is the subject of a \u2018super-complaint\u2019<\/a> lodged by consumer group CHOICE that will get some serious attention.<\/p>\n

There are also some new rules from the Australian Energy Market Commission (AEMC) coming into play from July 1 this year<\/a>; designed to:<\/p>\n