1 July Energy Price Changes
Most electricity prices changed on July 1 2021.
For energy customers in NSW, QLD & SA, it’s that time of year again when most electricity retailers will send out notifications with any changes to their pricing.
From July 1, some retailers will be increasing their current rates, some will remain unchanged, and some will be reducing their rates to offer better deals to new and existing customers.
How do July 1 energy price changes impact your home or business energy bills?
- Some rates are increasing by up to 20%*. It is important that you look for a notification from your retailer to see if you will be affected.
- If you receive a notification from your retailer about a price decrease, you may still find a cheaper electricity rate is available if you can compare your available options.
- The energy market is highly competitive, but the only way to find out if you can get a better rate is to shop around. A free energy comparison service from Make It Cheaper could help you find a cheaper plan in just 10 minutes.
Why get an energy comparison with Make it Cheaper?
- Our comparison service is 100% free
- We find savings for 80%* of customers who complete our free energy comparison
- We find average savings of $1,108^ per year for our SME customers
If we present you with an energy plan you’re happy with, we’ll even take care of notifying your existing supplier and ensure that the switch to your new plan is as simple and easy as possible.
The Default Market Offer (DMO) in 2021
The DMO is set to cut the price for 727,000 electricity customers on a standing offer. The new rates take effect from 1 July 2021 and are estimated to reduce electricity costs by $116 for households and $441 for small businesses.
Sounds good, so why do I still need to shop around for an electricity plan?
Even with these changes, most customers are likely to be paying more than they need to by remaining on a standing offer.
“The DMO is not designed to be the most competitive deal but rather it is a safety net for customers who don’t or can’t shop around when it comes to their electricity contract,” says AER Chair, Clare Savage.
Since default offers were introduced on 1 July 2019, energy customers on standing offer flat rate tariffs in New South Wales, South East Queensland and South Australia were automatically switched to lower Default Market Offer (DMO) rates.
A similar price regulation called the Victorian Default Offer (VDO) also applies to small business and residential energy customers in Victoria.
In addition to the introduction of default market offers, retailers are now required to list any discounted plan offers using the default offer price as a 'reference price'. This change will make comparing different retailer market offers and discounts much easier, because the percentage off discount will be calculated against a standard benchmark across different energy retailers.
Has this been a good thing?
The competitive market offers for SMEs in NSW can be up to 31%^ cheaper than 2021 DMO standing offers. This means a cheaper plan could be available to you at any time — just by shopping around or using a free energy comparison service.
How much cheaper could a market offer be for your business depends on which state you live in:
- NSW 31%
- SA 21%
- QLD 22%
How can I secure a cheaper electricity rate for my home or business?
Simply by shopping around and ensuring you are on a market rate rather than a standing offer.
Comparing electricity plans from energy retailers in Australia should be quick and simple. However, with so much competition and a variety of plans and pricing from each retailer, it can be difficult for customers to do this themselves.
Make it Cheaper provides Aussie homes & businesses a free energy comparison service that will review your current energy bill or rate-change notification to help find you a cheaper electricity rate in around 10 minutes from 10 energy retailers across Australia.
Still confused on about energy price changes in 2021?
Speak to the energy experts at Make it Cheaper today and we'll help you find out if we can provide you a better electricity or gas deal. Our friendly Aussie based consultants will compare business energy rates from our panel of retailers and assist you to switch to a more competitive plan. We can also do the same for your home energy plan, while our commercial and industrial team is able to assist large commercial energy users.
*Make it Cheaper analysed price changes for retailers on their panel and identified some retailers had implemented increases for businesses in NSW, QLD and SA from July 1 2021 of up to 20%, calculated as a weighted average across energy usage and tariff area.
^ Make it Cheaper analysed small business energy rates available from July 1 2021 and found some of the retailers on our panel offered rates up to 31% cheaper for customers in NSW than the 2021 DMO standing offers. Calculated as a weighted average across energy usage and tariff area .
Availability of retailers and plans can vary state by state and is dependent on the property and connection type. At times commercial relationships may impact what retailers or plans are made available