Wholesale electricity prices are falling across Australia, and it’s making big news! Only last month, Energy Minister Angus Taylor revealed national electricity prices reduced by up to 46% in the last year. But if you’re like most of us, when you hear words like “wholesale”, you tune out. After all, you’re a consumer of power, not a wholesaler! Well, this matters to your average Aussie families and businesses than you might initially think. The electricity market is changing, and it can save you big bucks.
So why do wholesale electricity prices matter, anyway?
Did you know the cost of wholesale electricity makes up around one-third of household power bills? Maybe not – power prices aren’t something people usually think about (until we get our power bills and groan). Well, it’s this simple: when the cost of wholesale electricity prices go down, it saves energy retailers money. And as long as cost reductions flow through to customers, that should save you money.
Of course, it doesn’t always work that way in the world of business! Fortunately, the Energy Minister is taking a “big stick” no-nonsense approach in prohibiting energy market misconduct. He explains the Government is “committed to delivering affordable, reliable energy that will create jobs and support Australia’s economic recovery.”
Reversing the energy price crisis
A big reason electricity prices have been so high for so long is a lack of energy market competition. The Australian Competition & Consumer Commission (ACCC) even described the behaviour of players in this market as “unacceptable and unsustainable”. Back in 2018, they identified a serious electricity affordability problem for consumers and businesses, making dozens of suggestions on how improve affordability. After all, without affordable electricity, Aussie homes and businesses suffer. It also reduces Australia’s competitive advantage – it’s a real big deal. If you want to know more, mosey down to the ACCC report here for some fascinating insights.
Since then, there’s been some big shake-ups in the National Electricity Market. But don’t worry, you don’t have to know the ins-and-outs of energy in Australia! Just know that cheaper wholesale electricity for energy retailers should mean cheaper power bills for you. However, as we mentioned earlier, it’s not always that simple. More words of wisdom from the Energy Minister:
“While it is good to see reductions starting to flow through… we are going to keep the pressure on the energy companies to make sure they keep coming down”
That’s right; just because you should be reaping the benefits, it doesn’t necessarily mean that you are. You’ve probably been with the same energy provider for years if not decades; after all, changing is effort, right? But it’s possible that you’re not getting the energy price savings that you should be. Don’t let your energy prices stay unaffordable!
Put your energy into comparing energy
According to University of Melbourne, falling wholesale electricity prices should equate to about a 15% cut in power bills; that is, if the falling prices are passed on in full. So, if your bill hasn’t gotten cheaper, it’s time to start wondering why.
Affordable energy prices have been described as being central to Australia’s economic recovery out of COVID-19; it means fairer energy prices for you, and a fair go for Australia.
Times are tough financially for many of us. Even if you’re lucky enough to be going okay in the wallet department, why put money in your energy retailers’ wallet and not in your own? Whether you’re a bargain hunter, looking to trim the fat off your bills, or simply believe in getting the best value for your money: you should be asking yourself “are my energy prices fair?”. And the best way to figure out the answer to that question is to compare electricity prices. Luckily, there’s an easy way to do that thanks to the savvy folks at Econnex.
Let’s face it: there’s a whole lot of energy suppliers out there. Trawling through a dozen electricity retailers to get quotes would be about as dull as dishwasher. We’re all about convenience and #bestlife nowadays: from tapping your phone a few times to order a gourmet dinner to your door, to streaming your fave flicks online. So yes, we want you to put your energy into comparing energy: but just like your hard-earned dollars, your time is an invaluable resource. That’s where Econnex comes in.
The how and why of comparing electricity prices
It’s simpler than you’d think. Just fill in a form that takes only a couple of minutes of your time to compare Energy Prices, Rates & Tariffs across a panel of TOP retailers: EnergyAustralia, AGL, Origin Energy, Alinta Energy, Powershop and much more. It’s a 100% free service, with no obligation to sign up for anything. If you like what you see, just pick that cheaper plan and Econnex will do the rest. No calls, no fuss, no worries! Just a better deal on your electricity bill when you compare electricity with Econnex.
How does it work?
You’ll start by telling Econnex your postcode, approximate electricity usage for a given period, and your connection date. You can then choose your preferred tarriff type – single rate, time-of-use rates or controlled load rates (depending on location). They’ll show you various options with dollar values (none of those confusing Star systems, thank goodness); remember to look at things like:
- Tariffs
- Billing periods – monthly, quarterly, or bi-monthly?
- Fees and charges
- Pay on time discounts or benefits
- Standard or market contracts
Make sure you look at the whole plan before you make your mind up; if you aren’t the most technical person in the world, don’t worry! They have plenty of help in the system to guide you through. Once you’ve chosen the new plan, they’ll begin the transfer process for you. Easy as!
Ready to compare energy price and save? Econnex is ready to help everyday Aussies get a better deal on their electricity bills. Check it out!