More than half of Aussie households have admitted to feeling the heat of rising power bills as confidence in the energy market continues to dwindle, according to new research from a key industry support body.
In a national survey conducted by independent group Energy Consumers Australia, 52% of households either strongly or somewhat agreed that they were more concerned about their ability to pay their power bills now than they were 12 months ago.
The same survey also found that 59% of households believe energy would become unaffordable for them in the next three years, while 77% said it would be unaffordable for Aussies in general.
It comes to light just weeks before households in New South Wales, Victoria, south-east Queensland and South Australia are set to experience power price hikes of up to 25%.
Energy Consumers Australia Interim Chief Executive Officer Jacqueline Crawshaw said consumer confidence remained on a steady decline, following the wholesale market mayhem experienced in the last 12 months.
“High inflation has sent the cost-of-living soaring and many Australian households are clearly feeling the pinch,” she said. “Consumers are also aware that there is more pain on the horizon with energy prices set to rise between 20 to 30 per cent across the country.”
In the last 12 months alone about one in 10 households (11%) admitted to seeking additional bill support from their electricity provider. A further 15% said that they would likely need to seek support in the very near future.
Survey respondents also highlighted electricity costs as their second most concerning expense, after their mortgage or rent, and ranked electricity as the utility service that they receive the least value for money for.
Struggling to pay your energy bills? See what assistance you may be eligible for in Canstar Blue’s energy bill payment guide.
As for the states and territories that were the least satisfied with their electricity costs, it was South Australia leading the charge (30%) followed by Tasmania (29%) and the Australian Capital Territory and Queensland (28%).
Ms Crawshaw said the data reflected a need to restore consumer confidence in the market.
“The energy bill relief measures announced in the recent Federal Budget will go some way to easing the pressure on eligible households, but a key to restoring consumer confidence is to ensure people have a sense of control over their energy use and ability to bring their bills down,” she said.
Despite growing concerns for power bill affordability however, only 7% of households switched plans or providers in the last 12 months.
Why aren’t households switching electricity plans?
Energy Consumers Australia’s survey found that a whopping 59% of households had not even considered switching electricity plans or providers in the last 12 months.
When asked why this was the case, nearly two-fifths of respondents said it was because they didn’t believe the savings to be worth the hassle of switching.
Previously, it could take up to 90 days to switch from one power provider to another.
Canstar Blue Utilities Editor Tara Donnelly said the process of switching had changed drastically in the last two years.
“There was once a time when switching electricity providers was a time-consuming and finicky process,” she said. “But now, thanks to new rules brought in in late 2021, it can take you as little as 48 hours to start receiving rates from your new provider.
“Switching plans could mean the difference of a few hundred dollars each year for your household. Plus, with 10-day cooling off periods still in effect, if you make the switch but find a better deal elsewhere, you may be able to jump ship before the costs start rolling in – or negotiate a better deal.”
According to Canstar Blue’s database, households across NSW, VIC, SEQ and SA could currently save as much as $298 a year by switching providers.
Ms Donnelly reminded households to regularly compare to stay on top of the best price, particularly as July 1 approaches – the annual day for price changes in the electricity market.
According to the same Energy Consumers Australia survey, about 29% of households said they compare electricity prices every 12 to 24 months, while 17% look every six to 12 months. Just 6% said they compared every six months.
Are you one of the 59% of Aussies that haven’t compared plans in the last 12 months? Make sure you aren’t missing out on a better deal with these cheap plans
Here are some of the cheapest published deals from the retailers on our database that include a link to the retailer’s website for further details. These are products from referral partners†. These costs are based on the Ausgrid network in Sydney but prices may vary depending on your circumstances. This comparison assumes general energy usage of 3900kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.
Here are some of the cheapest published deals from the retailers on our database that include a link to the retailer’s website for further details. These are products from referral partners†. These costs are based on the Citipower network in Melbourne but prices may vary depending on your circumstances. This comparison assumes general energy usage of 4000kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.
Here are some of the cheapest published deals from the retailers on our database that include a link to the retailer’s website for further details. These are products from referral partners†. These costs are based on the Energex network in Brisbane but prices may vary depending on your circumstances. This comparison assumes general energy usage of 4600kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.
Here are some of the cheapest published deals from the retailers on our database that include a link to the retailer’s website for further details. These are products from referral partners†. These costs are based on the SA Power network in Adelaide but prices may vary depending on your circumstances. This comparison assumes general energy usage of 4000kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.
Is there rising gas bill anxiety too?
Natural gas customers appear to be weathering the storm of wholesale prices slightly better than electricity customers, with 63% of households stating that they think they get good value for money on their gas costs.
The states most impressed with their gas costs included Western Australia (70%), New South Wales (50%) and Queensland (50%). However, it was households in the ACT that appear to have suffered the most, with more than a third of customers (34%) unhappy with their costs.
A whopping 70% of gas customers stated that they were happy with the customer service they received from their provider, while 82% of households rated the general service from their gas provider well. This was up from 80% in the June 2022 survey.
However, respondents believed that telco, insurance and other utility services besides electricity still offered more value for money than gas.
Image credit: fizkes/Shutterstock.com
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