More than 80% of households in Australia’s A$47 billion National Electricity Network (NEM) are spending too much on electricity, according to the Australian Competition and Consumer Commission (ACCC).
The ACCC said its latest electricity inquiry report found households on offers that were more than a year old were paying $238 more per year than those on newer offers, calling it a ‘loyalty penalty’.
The national competition regulator urged Australians to shop around or contact their electricity provider because by doing so eight in 10 of them could move to a cheaper electricity plan.
Although the price of electricity fell between 1 August 2023 and 1 August 2024, many households were missing out on lower prices because they were on offers priced above the government safety net price.
“If you haven’t changed electricity plans in the past 12 months, chances are you are paying more for your electricity than you need to,” Brakey said in a media release.
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The government safety net price is the price consumers are charged if they have never shopped around for another price and it is also the reference price to make it easier to compare plans in the market.
"We are urging Australians to take some time this holiday period to have a look on the Energy Made Easy or Victoria Energy Compare websites to see if there is a better plan,” Brakey said.
“Alternatively, people could simply call their retailers to see if they have a better offer available. We know that customers that haven’t done this in a while are probably paying too much."
This was the 12th time the report has been issued by the ACCC, which was directed in 2018 by the Australian Government to investigate electricity prices, profits and margins in the NEM, which covers NSW, Victoria, South East Queensland and South Australia.
Australia’s largest electricity retailers are Origin Energy (ASX: ORG), AGL Energy (ASX: AGL) and EnergyAustralia, which is a subsidiary of CLP Group (HKG: 0002).