Switching power companies can now save up to $2000 a year

A new report from St Vincent de Paul shows the enormous gap between the best and worst electricity offers available.

The gap between the best and worst electricity deals is now more than $2000 for some average households, according to a new report commissioned by St Vincent de Paul.

The report, released last week, found that “a household [in Victoria] that consumed the average 4800 kilowatt hours of electricity in the 12 months to July 31 could save between $2110 and $2675 a year by switching from the worst standing offer to the best market offer, depending on their location.”

We’ve long known that a very good electricity offer can save households hundreds or even $1000+ but this latest report finds the gap is now even greater.

Just how much you can save by switching providers and plans will depend upon 3 factors:

  • your usage,
  • your state and electricity zone, and
  • what deal you are on right now.

But for households who are getting no discount at all on so-called “standing offers”, or who haven’t shopped around for a couple of years, the cost of being on a poor plan can now add up to thousands of dollars.

The one piece of good news in the report – apart from the potential savings from switching – is that steep price rises may be done for the time being. Many retailers in NSW, SA and QLD kept their rates about the same on July 1 this year.

“We’ve started to see price pressures plateauing,” Gavan Dufty  from Vinnies told Fairfax papers. “Hopefully in six months time we will start to see price falls.”

* In highlighting particular offers we are not making specific recommendations as this article does not cover all available products and may not compare all features relevant to you. Any advice provided is general in nature and does not take account of your needs, objectives or financial situation. Individuals should consider their own circumstances, and if in doubt seek appropriate advice, before proceeding.