Major electricity rip off for millions of Aussies exposed by ACCC. Act now to save money
Millions of Australians struggling with the cost-of-living crisis are paying more for electricity than they need to be and are being urged to “find a cheaper deal” as a protection system has "failed dismally".
The Australian Competition and Consumer Commission (ACCC) assessed the energy deal five million Australians were on and compared them to the cheapest out there on the market.
A staggering 79 per cent were found to be on higher offers than what’s out there, with the ACCC warning that loyalty was costing Australians who are often lured in with cheap plans that end up growing in cost.
"The big secret for years in the energy market has been what people are really paying - we can look at current offers and see what they cost but most people are paying old prices and only energy retailers know what those prices are. This report finally pulls back the veil and what’s behind it is very ugly," money expert Joel Gibson told Yahoo Finance.
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Gibson described the findings as a “disgrace”, noting that Australians were not being protected by default offers, which were meant to be the safety net or base level the government regulator sets in July each year and considers a “fair price” for electricity.
"In 2019 the Morrison government rejigged the energy market to protect households from being ripped off but now we have half of Australia paying more than the price cap they created," Gibson said.
"It was meant to be an effective soft price that you pay if you don't shop around for market offers."
“You have a right to pay no more than the default offer. Most people don't know this, which is a travesty.”
He said Australians had been “failed dismally” by the price cap, with 47 people paying either what the government thinks is a price cap or above.
“This suggests a serious problem in our energy market, which means that basically around half of us are paying hundreds of dollars, even $1,000 or more above what we should for electricity in the coming year.”
Almost 70 per cent of Australians think the government is not doing enough to cut energy costs and electricity has remained the highest concern for household, according to Canstar's Consumer Pulse report released this week.
