The ACCC’s Electricity Retail Price Inquiry shows over a period of 10 years Australian electricity prices have risen by a dramatic 64% (in real terms).
What the average figure fails to highlight is consumers choosing the wrong electricity tariff could be paying twice as much compared to the best tariff.
So how do consumers ensure they are on the best tariff?
Electricity pricing is now so complex the only way to compare tariffs is to estimate the annual cost. This involves the use of tariff comparison tools. These tools largely fail to answer the key question.
The submission presents two recommendations intended to simplify tariff comparisons
• Retailers be required to show the future cost of electricity use on the bill
• Retailers send the billing data with the bill
Reminder: All retailers sell the same electricity. Consumers paying the lower price receive the same quality and reliability.
Copyright of this article remains with Dr Martin Gill. All references to this article should include the author’s name and website www.drmartingill.com.au.
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