Big Electricity Switch Campaign not the right option, says industry expert

You might have heard about the Big Electricity Switch Campaign, an initiative sponsored by several major media outlets with the aim of providing Australians with lower gas and electricity prices by group switching.

The campaign website promises applicants the chance to "unlock discounted electricity and gas" and claims to have given Australians home loans, solar panels and broadband fees at a lower cost in the past.

With the carbon tax set to impact many households and businesses, this might seem like an appealing offer - however a new blog post from Kris Bondin, owner and director of Bills to Pay, has warned people to be wary before getting involved in such a deal.

"Yes, group power in some instances does work, but when it comes to energy you must be very conscious when it comes to accepting the group discount," wrote Bondin in an article published June 27 on the website for financial switching service Moneyhound.

"Because of the way your original electricity bill is calculated, and the differences between providers and areas, it won’t work out that every single person will be better off signing up to a campaign like The Big Electricity Switch."

People living in different areas will often find they have different options when it comes to energy retailers. For that reason, negotiating a group discounted deal that benefits everyone can be difficult.

Families aiming to reduce their monthly utility bills might instead choose to conduct a price comparison check on their electricity supplier in order to ensure they are getting the best value for their money.

Posted by Charlie Moore