Price no longer the prime factor for energy bills

By Fergus Halliday

January 05 2022
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Many Australians are intrigued but unconvinced when it comes to greening their energy bill.

Price no longer the prime factor for energy bills

Aussies are increasingly aware of their green energy options, but less than 10 per cent are making the shift.

According to research released by the Commonwealth Bank of Australia (CBA), 70 per cent of surveyed Australians said that it was important to lead an environmentally sustainable lifestyle.

Despite this, just 11 per cent said that they were confident that their energy provider used renewable energy sources.

While 55 per cent acknowledged the importance of renewable energy sources, just 8 per cent said that they had made the switch to a green energy provider.

Renewable or not, the research found a general lack of engagement from Australians when it came to their energy provider, with 15 per cent unable to name their current provider.

Younger Australians were particularly in the dark on their utility bills.

Thirty per cent of those between the age of 18 and 29 were unable to name their electricity provider versus 5 per cent of those aged between 50 and 70 years of age.

More broadly, 73 per cent of those surveyed said they were unaware of how much they paid each month for their electricity. In a tragic twist, CBA found that price was still the main driver for consumers when it came to choosing their energy provider.

Beyond price, the research noted that 70 per cent of Australians wished their energy provider was more transparent when it came to costs and pricing plans. Just as many Aussies said that they’d adjust their energy usage to make use of cheaper off-peak energy prices.

The bank’s research also suggested that the shift to remote working during the COVID-19 pandemic had made Australians more energy conscious.

Forty-two per cent of those working from home said that they’d become more aware of their energy consumption, whilst 37 per cent said that they’d changed their energy usage habits to save money.

Overall, CBA found that 25 per cent of Australians considered switching their energy provider in the last six months.

However, the research indicated that the biggest barriers to changing were inertia that comes with inheriting an energy provider and ignorance about the differences between the options available.

While 81 per cent of those who switched their energy provider said doing so was easy, as many as 1 in 5 Australians believed that there was no point in switching.

Other consumers said that they found it too confusing to determine which provider would best meet their needs.

Speaking to nestegg, GetReminded co-founder Tim Nicholas recommended that consumers pay attention to more than just the total cost of their energy bill.

“There are three ‘time-of-use’ pricing tariffs to be aware of – peak, off-peak and shoulder – and each household will have different usage patterns,” he explained.

Mr Nicholas encouraged consumers to review their own usage patterns so that they have a better idea of which providers are charging more than they should or need to.

About the author

Fergus Halliday

Fergus is a journalist for Momentum Media's nestegg and Smart Property Investment. He likes to write about money, markets, how innovation is changing the financial landscape and how younger consumers can achieve their goals in unpredictable times.

About the author

Fergus Halliday

Fergus is a journalist for Momentum Media's nestegg and Smart Property Investment. He likes to write about money, markets, how innovation is changing the financial landscape and how younger consumers can achieve their goals in unpredictable times.

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