Cost of living continues to bite as 3/4 of Aussies try to curb bill shock

Three in four Australians have changed their energy habits this winter as fear of bill shock forces households to find new ways to stay warm without blowing the budget, according to new Compare the Market research.*

The survey found almost two in five Australians surveyed (39.10%) are using their heater less frequently to cut costs, while one in five (20.04%) have abandoned the heater altogether and are opting to snuggle in a blanket instead.

Australians are also making other sacrifices to reduce their energy consumption, with:

• more than a quarter (26.52%) using less hot water and a concerning 2.85% saying they aren’t using hot water at all
• around a third (31.83%) of respondents saying they’re using less energy
• one in five (20.43%) shifting their energy use to cheaper off-peak times where possible
• a quarter (25.64%) switching appliances off at the wall.

However, nearly a quarter (23.48%) say they haven’t changed their energy habits at all this winter.

Compare the Market’s Head of Energy, Meredith O’Brien, said the findings highlight the pressure many households are under as winter power usage climbs.

“Winter can be a perfect storm for high household energy bills,” Ms O’Brien said. “As temperatures drop, many families rely on heaters, electric blankets and hot showers to stay warm, not to mention a heavy reliance on clothes dryers to dry clothes on those chilly winter days, which can all quickly push up electricity consumption. But our findings show people are shunning these measures in droves in an attempt to cut costs.

“What’s particularly striking is that some Australians aren’t just turning the heater down;  they’re turning it off altogether and piling on extra blankets instead as a cheaper alternative to warm up. Others are cutting back on hot water use, which shows just how determined people are to keep their bills under control.

“While there are certainly ways to reduce your energy costs, nobody should feel like they have to shiver through winter or avoid hot water entirely just to save money.”

Ms O’Brien warned that many households may still be in for a nasty surprise when their next energy bill arrives.

“The challenge with winter energy use is that the financial impact often isn’t felt until weeks or months later, when you actually receive your bill,” Ms O’Brien said. “Families may be doing everything they can to reduce consumption, but many could still be hit with a higher-than-expected bill at the end of winter.

“That’s why it’s important to focus on smarter energy-saving strategies that help reduce costs without sacrificing comfort. And, if you haven’t done anything since last winter or the last 12 months, compare your gas and electricity plan to ensure you’re still on a competitive plan.

“Our research shows close to a quarter of Aussies we surveyed have seen their daily supply charge increase in the past year, 17% have seen a usage charge increase, while 28% have seen an increase to both charges.

“Run a comparison and see if you can slash the price you pay, as this could be an easy first step in lowering your winter energy bill.”

But how much can you actually save by adjusting your habits?

Taking shorter showers

“Hot water systems can be one of the biggest energy guzzlers in the home, accounting for as much as 30% of a household’s energy use,” Ms O’Brien said. “You don’t have to skip the hot shower altogether, but trimming a few minutes off your daily routine can reduce the energy needed to heat water and help ease pressure on your next bill.”

Using the heater less

“As you’d imagine, heating is a huge contributor to higher energy bills, accounting for around 40% of household energy use,” Ms O’Brien said. “The ideal temperature in winter should be between 18°C and 20°C, as every degree warmer can increase your usage by up to 10%.

“Also ensure you’re heating your home as efficiently as possible. You could slash your energy bill by up to a quarter by closing windows and doors, draught proofing and preventing hot air from escaping.”

Unplugging unused devices at the wall

“Many Australians would be surprised to learn that unplugging unused devices at the wall could slash their electricity bill by around 10%,” Ms O’Brien said.

“It’s also worth making the most of any periods when your energy is cheaper or even free. If you have solar panels or you’re on a ‘three for free’ energy plan, try charging phones, laptops and tablets during the middle of the day and schedule bigger energy users like washing machines, dryers and dishwashers to run during those hours too. A little planning can go a long way towards getting more value from your energy plan and keeping costs under control.”

*Compare the Market commissioned PureProfile to survey 1,018 18+ aged Australian adults, conducted July 2026.