A whopping one in two Victorian households could have been paying more than they needed to for electricity last year, after the state’s energy regulator found a lack of plan switching cost households millions in savings.
The Essential Services Commission (ESC) – Victoria’s independent energy regulator – found that households missed out on a potential $191 million in electricity bill savings and $86 million in natural gas savings by not being on their retailer’s ‘best offer’ in the 2022-2023 financial year.
A retailer’s ‘best offer’ is typically its cheapest plan for customers in the area based on their annual usage data from the last year. These plans do not include sign-up discounts or credits.
In Victoria, energy retailers are required to display a ‘best offer’ message on their customers’ bills periodically throughout the year to ensure their customers are aware of any potential savings they may be missing. For electricity billing, retailers must display this notice once every three months. Natural gas bills require this messaging every four months.
According to the ESC, only one in two Victorian households were on their electricity retailer’s deemed ‘best offer’ in 2022-2023. Around 70% of gas customers were on their retailer’s ‘best offer’ during the same time period.
How much could Victorian households have saved if they switched to their retailer’s best offer?
The ESC estimated that at least 28% of households that weren’t on their retailer’s best offer could have saved $100 or more on their power bills in the last year by switching over. Another 6% could have saved between $250 to $400, with a further 6% potentially saving over a whopping $400 last year.
Gas customers could have seen a similar savings sentiment, with 17% of households estimated to have potentially saved $100 or more by being on their provider’s best offer.
Commissioner Sitesh Bhojani said customers who aren’t sure if they are on their retailer’s best offer can confirm by checking their previous energy bills.
“Look for the box on the front of your bill that says, ‘could you save money on another plan’. This isn’t a marketing ploy. Under the rules, retailers in Victoria must regularly tell you their cheapest energy plan available based on how much electricity or gas you currently use,” he said.
Example of ‘best offer’ messaging on energy bill.
According to the ESC, it was customers of the larger retailers, such as Origin, EnergyAustralia or AGL, in Victoria that were the least likely to be on their retailer’s best offer.
Electricity price gap expands in the state: Is now the time to switch?
In the same report, the ESC revealed that electricity prices had taken a significant hit since the Victorian Default Offer (VDO) change was issued on July 1.
Between June 2023 and August 2023, the median electricity price had increased by 23% or $293 in Victoria, according to the ESC. Most of the offers in market became more expensive in July 2023, with the biggest price jumps reportedly coming from the large and medium sized retailers over smaller retailers.
The ESC also said the difference between the lowest priced electricity offer and highest priced electricity offer in the state was significantly higher than in previous years.
Canstar Blue Utilities Editor Tara Donnelly said it highlighted a potential for savvy power savings to those willing to switch plans and providers in Victoria.
“With the gap between the highest and lowest electricity prices growing in the state, Victorian households may find themselves in a position to save on their costs by comparing plans in the market,” she said.
“Prices have undergone significant changes in the last three months and it’s likely that many, if not all, households are experiencing some kind of power bill shock at the moment. It may pay off for houses to jump online and ensure they aren’t missing out on a better deal elsewhere.”
Don’t pay more than you need to on your power bill! See if you could be saving on your energy costs with one of these cheap plans in Victoria
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 Jemena network in Sunbury 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 United Energy network in Frankston 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 Powercor network in Bareena 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 AusNet network in Warragul 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.
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