$900 million in savings up for grabs on power bills

As investors we often devote plenty of time selecting the assets that make up our portfolio. Yet when it comes to major household expenses, it can seem all too hard finding ways to save. So, I was pleased to read the latest news from consumer watchdog the ACCC, that Australians can look forward to big savings on energy bills – just in time for winter!

After years of rapidly rising power bills, electricity prices have started to fall, dropping almost 9% since the middle of last year. According to the ACCC there is $900 million in potential savings for households across the eastern and southern states.

The fall in prices is thanks to a combination of increased capacity through the use of renewables as well as cheaper fuel costs. That’s led to lower wholesale electricity prices, and the ACCC has put power companies on notice that these savings need to be passed onto households.

There are three ways to get the hip-pocket benefit of lower power charges. Either wait for your supplier to cut the rates on your current plan, or swap to a more economical plan. Or better still, shop around and switch to a new, cheaper provider.

Now is certainly a good time to hunt around for a better deal – and it’s surprisingly easy. If you’re in New South Wales, South East Queensland, South Australia, Tasmania or the ACT, the Energy Made Easy website is a great way to compare offers. You just upload your last power bill to the site, and within seconds you’ll be shown a range of offers from various retailers plus cheaper plans from your present provider.

If you’re in Victoria, head to the Victorian Energy Compare website to land a better deal.

How much you can save depends on the number of people sharing your home and whether you have appliances like air con or pool filters. But the savings can be impressive. A colleague of mine ran their household electricity bill through the Energy Made Easy site, and found shifting to a different plan with the same retailer would produce annual savings of $600. Not a bad return for a few clicks on a keyboard.

For WA households, the situation is slightly more complex. The state government sets electricity prices not the retailer, and most homes are supplied by Synergy. It’s still worth checking out the different plans available through Synergy to be sure you’re not paying more than necessary.

Shopping around for savings on electricity bills doesn’t just have the potential to cut what can be a significant household expense. It can also be an opportunity to make the move to renewable energy, and for many Australians that’s an important personal goal.