Australians are wising up about their energy bills and saving hundreds of dollars by turning away from major energy providers in favour of better deals from smaller competitors.
According to the Australian Energy Market Commission’s 2019 retail energy competition review, nearly one in four customers were switching retailers, with switching rates hitting a record high of 24.4 per cent.
It’s leading to price cuts and major reductions in market concentration of the ‘big three’ majors, with Origin, AGL and EnergyAustralia no longer holding the biggest market share in south-east Queensland and South Australia.
How much money can I save?
It’ll depend on which distribution zone you’re in, but if you switch from the median standing offer to the cheapest market offer in electricity or gas, you stand to save hundreds, according to the AEMC’s review.
NSW residents, who save the least compared to counterparts in other states, still stand to save $389, while South Australians who make the switch can save up to $760.
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Similarly, residential customers moving from the median gas standing offer to the cheapest gas market offer can save upwards of $77 a year, with Victorians saving the most of all.
“Increased competition has led to price cuts and large reductions in market concentration,” said AEMC chairman John Pierce.
While there were major challenges across the supply chain in the energy industry as the power system transforms, there were also opportunities driven by new technologies and consumer options.
“Today we are seeing signs of a more engaged market that is responding positively to greater product innovation and bundling – and producing positive outcomes.
“Dominant players in the market are under pressure and I call on them to respond positively as consumers get to reap the benefits of a market where there are more participants and more real choices targeted to the specific needs of individual households.”
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