Have you ever looked at your energy bill and wanted to scream?
Not only does the cost of heating your home feel like it’s through the roof, but the data that electricity suppliers give to explain your bill can be bewildering and unhelpful.
Following an unusually cold and wet winter, many will fear their bill for the quarter could be significant.
Consumer surveys suggest more than a third of households say they struggle to afford their energy use.
The average quarterly bill is $590, according to a survey by EchoFlow Technology, an energy specialist. In winter, it rises to $705. Annually, Australians pay around $2,300 for their power.
Almost half of Australians (46%) want to be able to monitor their usage, according to data from Energy Consumers Australia’s “Energy Report Card”.
We also want to know how to switch plans easily and to find out the best alternatives to generate our own power.
Calling your current energy supplier should be your first step in unravelling the complexity of your energy usage and bill.
If you’re unable to afford the full repayment of the bill, they’re obliged to assist with a payment plan.
They should also review your deal and usage patterns, and suggest how you can reduce your usage and the amount you pay.
Here are some tips when analysing your bill:
Fees – Don’t underestimate the ability of energy companies to sneak in a few unwanted fees. See whether you’re being charged for receiving a paper bill in the post, or for using your credit card to pay them. And what is your penalty for a late payment?
Bait and switch – Did you sign up for a great deal but not realise it lasted only a few months? This happens quite often when customers don’t read the small print of the contract.
Best offer – Suppliers are expected to give you their best possible deal based on your electricity usage. Check whether this is the case, and do a little online shopping to see whether you can get a better deal elsewhere. Any assessment of your usage will be based on a 12-month cycle.
New deals – Energy companies operating within the National Energy Market (NEM) must notify you of any new offers every 100 days, or Victoria’s case, every three months.
Missing out – The Australian Competition and Consumer Commission (ACCC) says more than 80% of NEM households could pay less by switching providers.
Communication – What is the quality of your supplier’s communication? Did you know they need to give you five days warning if they change any of the conditions in your contract?
Finally, you can save hundreds of dollars if you ask your current provider to give you their most competitive offer, or if you decide to move to a better deal from a competitor.