Electricity providers in Australia are mandated to inform customers if they are not on the most advantageous rate, with potential savings of nearly $500 each year. The Australian Competition and Consumer Commission (ACCC) recently revealed that a “better offer” notification is now included on power bills for around 6.7 million customers, indicating that over 75% of households are likely not utilising the cheapest electricity plan available.
According to financial comparison platform Canstar, customers who switch to the better offer could save an average of $291 annually, reaching as high as $490 in some cases. Collectively, these changes could lead to national savings of approximately $1.9 billion.
Under the Better Bills Guideline established by the Australian Energy Retailer, energy retailers are required to inform customers every 100 days about potential savings if they switch plans. If retailers release new plan versions with the same name but different rates, they must clarify that customers have the option to switch to the updated plan. Alarmingly, data shows that 27% of those not on the cheapest plan are currently on a plan sharing the same name as an older version.
From December 30, energy retailers will need to provide information about better offers directly within the main content of their communications, rather than just on the bill itself.
Canstar’s data insights director, Sally Tindall, highlighted the significant amount of $1.9 billion that remains untapped simply due to customers not taking action on the offers presented on their bills. The end of federal electricity rebates has left some households facing financial strain, but many can quickly regain control over their bills with a single phone call to secure better rates.
Tindall further emphasised the importance of comparing plans from different retailers to ensure customers are receiving the best rates available.
In summary, vigilant awareness of the offers on electricity bills can lead to substantial savings for Australian households, making it essential for consumers to review their energy plans regularly and take advantage of available opportunities for reduced costs.