- Energy prices could rise by almost 30% in July
- Some retailers are delaying the 1 July price hike
- Paul Coughran urges customers to shop around and secure a better deal
With the majority of energy retailers hiking prices for residential customers by up to 29% in NSW on 1 July, Compare Club has found that if households switch to a cheaper plan from a retailer who’s delaying their price rises and bundling energy with broadband, they could save up to $714 a year.
The Australian Energy Regulator (AER), who set the Default Market Offer (DMO) for New South Wales, South East Queensland and South Australia announced in March that residential customers on standard retail plans will face price increases of around 19.5% to 23.7%.
General Manager of Utilities at Compare Club Paul Coughran says, “Seeing energy prices being dramatically increased across New South Wales will be extremely jarring to many households already struggling with the cost of living, but the good news is that there are significant savings to be had for people who are proactive to shop around.”
The analysis of current offers and pricing has revealed surprising discounts against the DMO reference price in NSW by several retailers.
Moreover, some retailers are delaying the 1 July price hike, allowing eagle-eyed customers to stack additional savings on top of the initial discount.
A report from Better Renting concluded that New South Wales renters are feeling the ache from burdensome energy bills.
The potential savings are a welcome bit of relief as Compare Club’s recent Bill Stress Index revealed that while 1 in 5 Australians admit to struggling with making ends meet, only 20% have switched their utility bill providers.
Furthermore, the research concluded that utility bills, including energy, are the second biggest stress for Australian households after their mortgage.
Coughran says it’s crucial for consumers to explore their options and secure the best possible deal.
“By switching providers through financial marketplaces like Compare Club, individuals can unlock substantial discounts and protect themselves from impending price rises.”
| Area | FY23 DMO | New DMO from 1 July 2023 | Maximum potential saving |
| Sydney & Central Coast (Ausgrid) | $1,512 | $1,827 | $538 |
| Western Sydney & Blue Mountains (Endeavour) | $1,726 | $2,228 | $702 |
| Regional NSW (Essential) | $2,092 | $2,527 | $714 |
Source: Compare Club.
Tips for saving on energy bills
Coughran says by entering a fixed rate agreement, consumers can be protected from multiple instances of price fluctuations.
“A fixed energy rate plan refers to a contract in which your electricity supplier commits to maintaining consistent rates for power during a specified period, typically lasting one or two years,” he said.
Coughran adds that customers should also look at bill smoothing.
“Some utility providers offer an instalment payment plan or ‘bill smoothing’ – where you can arrange to make payments fortnightly or monthly, instead of having to pay the whole amount in one go.
“This is often a good way for households to manage their budget.”
