If you haven’t changed your electricity plan in a while, you’re probably paying more than you need to.
That’s the clear message from the ACCC’s latest Electricity Market Inquiry, which found that millions of Australian households are still stuck on poor-value electricity plans—despite cheaper options being widely available. ACCC Commissioner Anna Brakey said,
“A silver lining to the dark cloud of higher electricity prices is that there is a wide array of different offers out there and the prices vary significantly, which indicates that competition is working.”
So why are so many households still overpaying—and what can you do about it?
Customers on newer plans pay less.
One of the most striking findings in the ACCC report is just how much loyalty costs in the electricity market.
- Households that have stayed on the same plan for more than three years are paying, on average, $221 more per year than customers on newer plans.
- A household with average electricity usage that moves from a regulated default offer to a competitive market plan could save between $100 and $250 per year, depending on where they live.
- In New South Wales, simply asking your existing retailer to move you to their cheapest available plan could save around $300 per year
In other words, you don’t need to change how much electricity you use to save money—you need a better plan.
Too many households are paying too much.
Despite years of warnings, the ACCC found that 37% of customers (almost 2.5 million households) are still paying prices at or above the default offer. It’s important to remember that as a consumer, you have the right to switch electricity plans at no cost. This isn’t just an opportunity to find a better deal; you are entitled to choose a plan that works best for you.
Even more concerning:
- Over 400,000 households are paying more than 10% above the default offer.
As Commissioner Brakey put it:
“Loyalty penalties are alive and well in the retail electricity market, so the very best thing people can do to save money is to switch plans.”
That might mean switching to a cheaper plan with your current retailer—or moving to a different retailer altogether.
Rebates are over. Now it’s up to you.
For the past year, government electricity rebates helped soften the blow of rising power prices. Those $75 quarterly credits have now ended, and households will start to feel the full impact on their bills.
Across the National Electricity Market, residential electricity bills increased by 6% between August 2024 and August 2025 (excluding rebates). From January 2026, many households will see a real jump in their out-of-pocket costs now the rebate have finished
The good news? According to the ACCC:
“Many households could effectively replicate the value of the recently ended government rebates by changing plans.”
In other words, switching plans can deliver savings similar to the rebates—every year.
Your bill already tells you how much you could save
There’s an easy place to start: your electricity bill.
Retailers must clearly show on the first page of their bill how much you could save by switching to their cheapest available plan. If you haven’t looked at that section before, it’s worth a minute of your time.
But if you’re going to call your retailer to ask for a better deal, it makes sense to go one step further.
Compare before you commit.
With no exit fees and no lock-in contracts on electricity plans, households are free to shop around and choose the best value offer available—not just the best offer from their current retailer.
That’s where comparing plans properly matters. Prices vary widely depending on:
- Your location and network
- How much electricity do you use
- When you use it
- Discounts that apply (and how long they last)
Taking a few minutes to compare can uncover savings well beyond what your current retailer may offer.
You can start your comprehensive comparison here with WATTever to ensure you are well-informed about the latest electricity offers and how they stack up for you.
Bottom line
Electricity prices are high—but overpaying is optional.
If you haven’t changed plans recently, there’s a strong chance you’re paying a loyalty penalty. With rebates ending and price pressure continuing, now is the time to take control of your electricity costs.
Check your bill. Compare your options propel. Switch if it makes sense.