While soaring energy prices have been a major burden to the household budget over the last couple of years, new research from Compare the Market reveals that 4 in 5 Aussie households could be missing out on savings by sticking with the same gas or electricity retailer.*
In fact, 79.45% of Australians surveyed said they haven’t switched energy plans in the last 12 months – meaning they could be paying more than they need to for their gas or electricity supply.
Compare the Market’s Head of Energy, Meredith O’Brien, said some Australians may not even realise they’re paying too much.
“It’s quite alarming that as many as eight in 10 Australians admit to not switching gas or electricity retailers—especially because it means they could be paying more than they need to for their energy,” Ms O’Brien said. “Many people may not realise that they could roll onto a more expensive plan after the benefit period expires, which is usually 12 months.
“So, while your existing plan may have been competitive at one point, it’s highly likely that any perks or discounts you once enjoyed have expired. We’ve also seen some really great deals re-enter the market following the energy crisis, so deals that may not have been there when you signed up for your plan are available now.
“Unless you compare or switch to a different plan, the reality is you could be missing out on cheaper deals. Most Australians wouldn’t choose to pay more for an identical item at the supermarket, so it doesn’t make sense that so many do it when it comes to the exact electricity or gas supply.”
Compare the Market’s data found that nationally, around 1 in 10 Australians surveyed (9.29%) have switched gas retailers in the last 12 months, while 17.4% have switched electricity retailers. However, this does vary between states.
Queenslanders seem to be most resistant to switching energy retailers, with 83.76% of respondents admitting they haven’t changed in the last 12 months. This was followed by Victoria (79.37%), South Australia (76.71%) and New South Wales (73.26%).
In fact, just 14.13% of Queenslanders surveyed said they’ve switched electricity retailers over the past year, compared to 22.22% of New South Wales residents, 21.91% of South Australians and 17.50% of Victorians.
It’s a similar story for gas, where just 3.66% of Queenslanders have switched retailers in the last 12 months compared to 11.11% in New South Wales, 12.32% in South Australia and 12.84% in Victoria.
Ms O’Brien said checking your next gas or electricity bill carefully could be the first important step to take to ensure you’re not paying more than you need to for your energy supply.
“Energy retailers across New South Wales, Queensland, South Australia, Tasmania and the Australian Capital Territory are required to display a ‘better offer’ message on your bill at least once every 100 days, while it’s once every quarter in Victoria,” Ms O’Brien said. “Essentially, in very plain language on your bill, you’ll have an understanding of whether you’re paying more than you need to for your gas or electricity.
“While retailers are required to let you know if they have a cheaper offer available, this doesn’t reflect the whole market. This is why we’d encourage any Australian seeing this message on their bill to compare that price against other plans to ensure they end up paying as little as possible.”
* Survey of 1,010 Australian adults, conducted March 2024.
Data:
National
- 45% haven’t switched in the last 12 months
- 29% have switched gas
- 40% have switched electricity
NSW
- 26% haven’t switched in the last 12 months
- 22% have switched electricity
- 11% have switched gas
VIC
- 37% haven’t switched in the last 12 months
- 50% have switched electricity
- 84% have switched gas
QLD
- 76% haven’t switched in the last 12 months
- 13% have switched electricity
- 66% have switched gas
SA
- 71% haven’t switched in the last 12 months
- 91% have switched electricity
- 32% have switched gas
For more information, please contact:
Phillip Portman | 0437 384 471 | [email protected]
Compare the Market is a comparison service that takes the hard work out of shopping around. We make it Simples for Australians to quickly and easily compare and buy insurance, energy, and home loans products from a range of providers. Our easy-to-use comparison tool helps you look for a range of products that may suit your needs and benefit your back pocket.
