A good mate of mine, who runs a tradie business in Perth, recently showed me his latest electricity bill. It was a corker—easily four figures—and he just shrugged and said, "It is what it is, mate. Just the cost of doing business." It reminded me of something crucial about energy in Australia: so many of us fall victim to the status quo bias. We stick with what's familiar, even when it's actively costing us a fortune, because the alternative—comparing plans, making calls—feels like trying to fold a fitted sheet: annoying, fiddly, and best avoided.
The truth is, for the average Australian household, switching energy retailers can save thousands annually through better rates, discounts, and introductory offers, with minimal effort needed to complete the change. By simply taking a few hours each year to compare the market, you can ensure your home isn't needlessly paying a ‘loyalty tax’ on essential services, directly impacting your annual budget.
The sheer size of the potential savings is staggering. According to the Australian Competition and Consumer Commission (ACCC), many Australians could save hundreds of dollars a year by switching, yet millions of us haven't changed providers in years. This isn't laziness; it's often a mix of inertia and choice overload. When you look at the comparison websites, the plans, discounts, and conditions start to blur into a confusing mess. Anyone who's dealt with this knows the feeling: you click out of the website, sigh, and promise yourself you’ll look again tomorrow.
The industry is built on the hope that you won't switch. They rely on the fact that once you're anchored to a provider, even a small, seemingly insignificant monthly fee seems preferable to the cognitive effort of finding a better deal. This is a powerful, if cynical, business strategy, which is why your current provider likely won't call you to say, "Hey, we found a much cheaper plan from our competitor, you should jump ship!"
The secret sauce lies in the difference between the Default Market Offer (DMO) and the competitive market plans. The DMO (or the Victorian equivalent, the VDO) is essentially a price cap set by the regulator, but it's not the best deal available—it's just the safety net. The real savings come from two main areas:
Energy retailers are constantly competing for new customers, which means they offer significant incentive pricing. This often takes the form of massive first-year discounts, bonus credits, or a lower usage charge for the first 12 months. This is where the savings truly stack up. After 12 months, that introductory rate usually expires, and you automatically roll onto a less competitive, often significantly more expensive, standing offer.
The savvy move is to treat your energy plan like an annual subscription you actively manage. Once that introductory period ends, it's time to shop again. This consistent annual review stops you from falling into the loyalty trap and ensures you always benefit from a retailer trying to acquire you as a customer.
Every household uses energy differently. A plan with a high fixed daily supply charge might be terrible for a holiday home that’s often empty, but okay for a large family. Conversely, a plan with a low daily charge but a high kilowatt-hour (kWh) rate punishes heavy users.
When you compare plans, you’re not just looking for the biggest percentage discount; you’re looking for the plan whose cost structure best mirrors your consumption patterns. An experienced energy broker or comparison site can help you filter these options using your past usage data, revealing a plan that is genuinely cheaper based on how you actually live and power your home.
The financial evidence is compelling and hard to ignore. The Federal Government's comparison site, Energy Made Easy, provides a direct, trustworthy source of data. By entering your postcode and a few details from a recent bill, the site will instantly show you how much you could save annually by moving to the cheapest comparable plan in your area.
For years, I've worked with small businesses and seen their lightbulb moment when they finally compare their retail rates. In one regional NSW town, a café owner was on a standing offer for over five years; switching to a competitive plan saved them close to $4,000 in the first year alone—money that immediately went into hiring another staff member. This is the Social Proof principle in action: thousands of Australians are already making these changes and seeing real-world financial benefits. The system is designed for you to check and change—you just need to overcome the initial hurdle.
The entire process is relatively seamless now, thanks to digital comparison tools and a more competitive market. The retailers handle the physical transfer, so there’s no disruption to your supply; you won’t be plunged into darkness mid-dinner. The only change you'll notice is the lower amount on your next bill.
The biggest enemy of saving money is the perceived difficulty of the task. Here's the nudging reality:
Locate Your Latest Bill: You need this for your NMI (National Meter Identifier) and your actual usage data, which is the key to an accurate comparison.
Use a Regulator Site: Go to a trusted, government-backed comparison site. They provide the clearest, non-biased view of the market.
Filter by Your Habits: If you use most of your energy overnight, look for plans with cheap off-peak rates. If you have solar, focus on a high feed-in tariff.
Check the Fine Print: Look for the "benefit period". If it’s 12 months, set a calendar reminder for 11 months' time to check the market again.
Sometimes, the smallest shifts in how we see things—from a chore to an annual financial health check—can lead to the biggest results. It’s about building a better habit, not just performing a one-off task. You've heard the advice; now it’s time to take action and realise just how much is on the table, as detailed in more detailed breakdowns like this one. How to Read Your Energy Bill
Absolutely. The energy market remains highly competitive, and retailers continue to offer large introductory discounts that expire after 12 months. Regularly switching remains the single most effective way to avoid the 'loyalty tax' and stay ahead of standing offers that rarely provide the best value.
The main thing to check is the benefit period—how long the low rates or discounts last. Also, be mindful of conditional discounts, such as those requiring you to pay by direct debit or email; failure to meet these simple conditions can see the discount revoked.
No. The switch is a billing change that happens on the back end. Your electricity or gas supply remains uninterrupted throughout the transfer process, which is managed entirely by the new and old retailers in cooperation with the network distributor.