How to Navigate Increasing Power Prices and Get a Better Deal

Even though winter is on its way out and the pleasant warmth of spring will soon be here, the same unfortunately can’t be said for power prices. For many Australian households, the power bill has seen or will soon see a significant increase, depending on the region and specific retailer.

These increases come into effect for some residential customers in July, August, or September. But don’t lose hope just yet – it’s not too late to find a better deal, even as we prepare to say goodbye to winter.

How much will my power bills rise?

The exact impact on your power bills will depend on a few factors. Firstly, your location – whether you’re in New South Wales, Victoria, south-east Queensland, or South Australia – will play a role. Additionally, your current energy provider and the specific plan you’ve chosen will affect the outcome.

To illustrate, some major energy retailers have announced hikes to average rates for residential customers on variable electricity market contracts across several regions, some by as much as 29.8%, which could mean up to $565 a year.

What can you do?

With energy prices on the rise, many Australians are understandably concerned about their increasing power bills. A recent survey commissioned by comparison service iSelect revealed that many people are considering cutbacks in other areas of their budget to accommodate these higher costs, with takeaway food and drinks often being the first to go, followed by dining out and entertainment.

But here’s the good news – by comparing your energy plan and provider to see if there’s a better option out there, you might be able to keep your morning coffee ritual intact.

Seeking Out Savings

Higher energy prices don’t mean that savings are out of reach. Even small differences between the prices offered by various retailers can accumulate over time and have a significant impact on your energy bill.

Julia Paszka, iSelect’s general manager of utilities and credit cards, noted that their research found that more than half of Australians surveyed have either never switched or haven’t changed their energy plan or provider for over two years.

This is a cause for concern, as their research also revealed potential savings for those who do take the time to switch. Of those who changed their provider or plan in the last two years, 73% reported savings, with the average amount being around $240 annually.

Navigating the energy market can seem daunting and confusing, but it doesn’t have to be. Investing a few minutes to understand recent and upcoming changes in energy prices, comparing your current plan, and checking for better deals could pay off significantly. If you would like to discuss how these changes might impact your financial plan, HPartners is here to help.