Mon-Fri 9AM to 8PM (AEST)Australia has a reputation for high energy costs, having some of the highest energy bills in the world.
Many Australians seek to reduce energy consumption and save money, attempting to combat the growing electricity and gas prices.
But what’s inflicting these rising energy bills?
The Problem with Traditional Energy Sources
Australia is heavily reliant on traditional electricity sources. Coal and natural gas are environmentally harmful and increasingly expensive. Australia’s electricity costs have increased by 117% in ten years and gas by 60%. As a result, households and groups are struggling.
But what’s causing the price increase?
Traditional Energy prices are skyrocketing; various factors are contributing to this:
- Fossil fuels are finite, meaning their availability decreases with time. The depletion of these resources increases the complications and expenses of sourcing them.
- Australia is also sensitive to climate-related events and geopolitical uncertainties impacting the supply chain.
- The government has also been enforcing stricter environmental regulations to reduce emissions.
- Additionally, coal-fired power plants are an aging infrastructure, which results in additional costs related to plant maintenance.
- While Australia produces much of its energy, it is susceptible to currency fluctuations, which impact the prices of energy imports.
- Due to public and regulatory pressures, renewable energy is increasingly competitive, reducing the economic viability of traditional energy.
These factors compound and impact rates offered by energy providers.
Government Intervention giving you LOW energy prices:
In response to public outcry, the Australian Government staged an intervention. About a year ago, they introduced an energy market cap.
The energy price cap prevented wholesale prices from soaring, making energy bills more affordable.
This significantly reduced Victoria’s average wholesale price to $37, down from $100. New South Wale prices have decreased from $145 to $72. At the same time, Queensland prices have dropped to $67.
This price cap on wholesale energy prices allows smaller energy retailers to lower their energy prices. Market price changes significantly impact smaller energy retailers.
Your potential savings on energy bills:
Our research shows that enticing offers are emerging in NSW, Victoria, and Southeast Queensland. Potential savings range from $359 to $386. However, in South Australia, the savings are only around $35.
If it’s been over a year since you last reviewed your energy plan, you’re likely paying more than necessary. The Australian Competition and Consumer Commission estimate over 50% of households pay more than the Default Market Offer or Victorian Default Offer.
So, how else can you combat energy costs?
Green Technology
Investing in the green era is one approach to combat the growing charges. Solar panels, wind turbines and other renewable electricity sources reduce conventional energy resource reliance. Despite preliminary technology fees, they present a way to significantly lessen long-term charges.
Sustainable Energy & Lighting Solutions
Sustainable energy and lighting fixtures are another solution. These include power-efficient appliances, LED lighting and smart home systems. These can lessen consumption and decrease energy payments. Switching to LED can reduce lighting fixtures prices by up to 80%. Energy-efficient appliances can reduce costs by as much as 30%.
Government Incentives
The Australian government understands that sustainable power is crucial. They have implemented rebates and subsidies for solar panels and renewable energy resources. Grants are available for businesses to incentivise sustainable practices similarly. These incentives can help families and corporations reduce costs while contributing to a sustainable future.
The Importance of Education
Sustainable practices are crucial; however, many Australians don’t fully understand their implications. Many individuals aren’t aware of the intricacies of their energy consumption. Understanding the market, your consumption habits, and what rates are available can substantially reduce your bills.
But what should you look for in your energy provider?
What to look for in Australian Energy Plans:
What you need in a provider will vary depending on your needs. Australia has a competitive energy market with various energy providers and suppliers offering different plans and rates. This can make it overwhelming for consumers to choose the right plan for their needs. However, with some research and comparison, you can find the best deal that suits your budget and energy usage.
Discounted Plans
Many energy providers offer discounted plans for new and existing customers. Discounts range from a percentage off the total bill to a fixed amount each billing cycle. Some providers offer discounts for paying bills on time or direct debit payments. These discounts can significantly reduce your energy costs.
Time of Use Plans
Time of Use plans offer discounted rates during off-peak hours. Shifting your energy usage to off-peak hours can save you money on your energy bills. Some providers offer additional discounts during specific off-peak periods.
Solar Plans
Take advantage of any solar plans offered by energy providers. They give discounts for using solar energy during the day and can significantly reduce energy costs. Most providers also have solar feed-in tariffs, which allow you to sell excess solar power back to the grid, reducing energy bills.
Concession:
60% of households fail to claim the rebates and discounts they’re entitled to. Concessions can save up to 17.5% on electricity usage and service costs. Concessions are available to those with:
- Pensioner Concession Card
- Health Care Card
- Veterans’ Affairs Gold Card.
Bundle Plans
Many energy providers offer bundle plans. These allow you to combine your energy plan with other services such as internet or gas. Bundling often gives you discounted rates, saving you money on multiple bills. However, comparing each service’s costs ensures you get the best deal.
Loyalty Programs
Many energy providers offer loyalty programs. These programs can include discounts, rewards, and special offers for long-term customers. If you are happy with your current energy provider, enrolling in their loyalty programs may be worth it.
Comparison Websites
Use utility comparison websites to find the best energy plan. These websites allow you to compare different energy plans and providers based on location, energy usage, and preferences. They show the discounts and rates each provider offers.
The verdict:
Use these tips. Take advantage of Australia’s discounted energy and save money on energy bills. Regularly review your energy plan and compare it with other options to ensure you get the best deal.
Energy comparisons are a fantastic tool. Utility comparison can help you find the best energy rates, helping reduce your electricity bills.
Cheap Bills specialises in matching you with the perfect energy company for your needs. We cater to residential customers and businesses, helping you save on your electricity bill.
Cheap Bills will simplify the comparison process. Our qualified team will assess your bills and match you with the best energy retailer.
For more information and help analysing your power bill, contact us.
Input your details into our website and use our 100% free comparison tool: https://www.cheapbills.com.au/;
Call: 1300 786 045; OR
Email: info@cheapbills.com.au
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About the Author:
Raised in far North Queensland, Elsie moved to Melbourne, Victoria, ten years ago and hasn’t looked back. She has a degree in business and communications. Elsie is passionate about transparent communication, loves research, and enjoys helping people understand the utility comparison industry.
