Energy regulators are set to reveal whether they will reduce default offers for 2026-27 by the end of the month, but new research from Compare the Market found more than half of Aussies with the power to switch to a cheaper plan won’t budge even if prices fall.
Compare the Market’s latest research found that 56% of Aussies surveyed would stay on their existing plan despite proposed changes to benchmark pricing from 1 July, compared to just 44% who said they would shop around for a better energy plan deal.
Baby Boomers appear to be the most loyal to their current energy retailer at 62%, compared to 60% of Gen Z, 52% of Gen X and 50% of Millennials.
Compare the Market’s Economic Director David Koch warned that many households could unnecessarily pay more for their power by staying loyal.
“If you don’t actively check your electricity plan, you could still be paying too much,” Mr Koch said. “Around 2.5 million Aussie homes fork out more than they need to for their electricity because they’re on or above default offers, according to recent ACCC data.
“Customers who stick with the same retailer for three or more years fork out $221 more annually than those on new plans. That’s not exactly loose change when we’re also facing higher mortgage rates, rising grocery costs and exploding fuel prices. Standing offers will change on 1 July, but they’re rarely the cheapest deal on the market. Customers still need to shop around if they want real savings.”
While drafts forecast benchmark pricing decreases of around $46 a year for Victorian households, $31 in South Australia, $216 in South East Queensland and savings of $58 to $226 in New South Wales, depending on your distribution zone, electricity price discounts aren’t guaranteed.
“A lot has changed in the short amount of time since the regulators released the draft benchmark pricing,” Mr Koch said. “I wouldn’t be surprised to see these proposed savings shrink, disappear, or even go up in some areas from 1 July.
“The decision will also set in motion pricing decisions on other market offers. Depending on the retailer, we could see some great deals come online, while others might get less attractive.
“That’s why it’s crucial that people with the power to switch use the opportunity to make sure they’re still on a good deal. Circle 1 July in your calendar and see if you could save – one quick check could return hundreds to your pocket.”
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.
