Save
Energy pricing model still not best value for consumers
Households across Victoria, South East Queensland, NSW and South Australia are still confused about the government’s recent changes to how energy plans are costed, new research has shown.
Energy pricing model still not best value for consumers
Households across Victoria, South East Queensland, NSW and South Australia are still confused about the government’s recent changes to how energy plans are costed, new research has shown.

Compare the Market said approximately 806,000 households in these areas have been moved to a default energy offer, but only 8 per cent are aware of how the changes will affect their back pocket.
The federal government brought in the default market offer (DMO) in July of this year to make it easier for customers to compare energy plans between providers.
It’s the annual maximum total bill amount that energy companies can charge for the “standing offer” prices and is based on a set average usage amount.
While these offers have the potential to reduce energy prices anywhere from $130 to $430, Compare the Market has warned that these offers still might not be the best available to consumers.

According to Compare the Market’s general manager of banking, Rod Attrill, “you shouldn’t simply accept that the default market offer is the best deal available”.
“In fact, there are many market offers – with or without conditional discounts – that provide cheaper usage rates and supply charges than these DMOs.”
Compare the Market has provided some information on how you might be able to save more money on your energy bill without moving to a default option:
Getting the cheapest power plan
A competitive usage rate and daily fee
Ensure you look at every aspect of your plan, not just the perks and conditional discounts involved.
A competitive usage rate might still leave consumers with a hefty bill if they are charged a high daily fee, meaning customers should look at the overall package.
A plan that suits your household’s energy usage
Different plans could help you save money on your electricity bills. For example, if you’re away from home during the day and at home most evenings throughout the week, you might benefit from a “time of use” tariff.
The length of your introductory offer
You might be able to extend your introductory offer and 12-month discount by reviewing your plan each year and negotiating with your provider to keep this offer. Don’t be afraid to switch to a provider that offers more value for you and your household.
Sweeteners that may benefit you
If you’re still deciding which energy plan suits your needs, you might find that certain perks become an important deciding factor. For instance, some energy providers allow you to link up your Flybuys membership with your electricity account.
Energy plans that offer better value
By comparing energy plans across various providers, you may find a more competitive usage rate, daily fee, conditional discount or perk.
About the author

About the author


Expenses
Expert tips to secure your financial safety net
New Zealanders are known for their "she'll be right" attitude, but when it comes to handling unexpected bills, being prepared is crucial. Read more

Expenses
Australians continue to opt for free VPNs, ignoring potential privacy risks
Australians, alongside citizens of Sweden, South Korea, and Mexico, are increasingly choosing to use free Virtual Private Networks (VPNs), despite the potential threats to their privacy. Read more

Expenses
Rooftop solar in childcare centres could cut energy bills by millions
The analysis conducted by Parents for Climate has revealed that the installation of rooftop solar and batteries in early childhood education and care (ECEC) centres could lead to savings of up to $130 ...Read more

Expenses
Corporate Traveller identifies key strategies for business travel savings
Flight Centre Travel Group's Corporate Traveller, a premier service provider for managing SME travel, has shared several effective strategies that enabled their business clients to significantly ...Read more

Expenses
Price no longer the prime factor for energy bills
Many Australians are intrigued but unconvinced when it comes to greening their energy bill. Read more

Expenses
1 in 2 Aussie pet owners spends on their pets more than themselves
Does owning a pet eat into your monthly budget? You’re not alone. Read more

Expenses
The real reason Sydney’s petrol prices are so high
Sydney fuel prices may seem like they’re soaring, but a recent study indicates that they may be cheaper than you think. Read more

Expenses
Morrison backs big pharma, turns back to developing countries
Big pharma is currently fighting to maintain intellectual property protections over COVID-19 vaccines, with Australia refusing to act despite having no pharmaceutical companies. Read more

Expenses
Expert tips to secure your financial safety net
New Zealanders are known for their "she'll be right" attitude, but when it comes to handling unexpected bills, being prepared is crucial. Read more

Expenses
Australians continue to opt for free VPNs, ignoring potential privacy risks
Australians, alongside citizens of Sweden, South Korea, and Mexico, are increasingly choosing to use free Virtual Private Networks (VPNs), despite the potential threats to their privacy. Read more

Expenses
Rooftop solar in childcare centres could cut energy bills by millions
The analysis conducted by Parents for Climate has revealed that the installation of rooftop solar and batteries in early childhood education and care (ECEC) centres could lead to savings of up to $130 ...Read more

Expenses
Corporate Traveller identifies key strategies for business travel savings
Flight Centre Travel Group's Corporate Traveller, a premier service provider for managing SME travel, has shared several effective strategies that enabled their business clients to significantly ...Read more

Expenses
Price no longer the prime factor for energy bills
Many Australians are intrigued but unconvinced when it comes to greening their energy bill. Read more

Expenses
1 in 2 Aussie pet owners spends on their pets more than themselves
Does owning a pet eat into your monthly budget? You’re not alone. Read more

Expenses
The real reason Sydney’s petrol prices are so high
Sydney fuel prices may seem like they’re soaring, but a recent study indicates that they may be cheaper than you think. Read more

Expenses
Morrison backs big pharma, turns back to developing countries
Big pharma is currently fighting to maintain intellectual property protections over COVID-19 vaccines, with Australia refusing to act despite having no pharmaceutical companies. Read more